Dáil debates

Tuesday, 26 January 2016

Topical Issue Debate

Farm Assist Scheme Eligibility

6:15 pm

Photo of Charlie McConalogueCharlie McConalogue (Donegal North East, Fianna Fail)
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At the outset, I join the Minister of State, Deputy Sherlock, in wishing Deputy Dowds well in his retirement. I was honoured to serve with him on the Joint Committee on Education and Social Protection. He was a fine member of that committee, to which he brought to bear his experience in the education sector. Indeed, he also brought his experience in life and in the community to bear in terms of his role in, and contribution to, the Dáil. He will be a loss to the Parliament. We come from different perspectives politically and challenged each other at times, but he has been an exceptional parliamentarian and I wish well with whatever he does next. Likewise, a Leas-Cheann Comhairle, I wish you well after a very distinguished career in the Houses of the Oireachtas. I and the Minister of State at the Department of Social Protection, Deputy Kevin Humphreys, will be hoping to have more opportunities to address the House in the future. However, none of us knows whether that will be the case, and we will be battling hard over the weeks ahead.

I thank the Ceann Comhairle's office for selecting this Topical Issue and I thank the Minister of State, Deputy Kevin Humphreys, for coming to the House to respond to it. I will address the issue of farm assist from two perspectives. The first relates to the impact the Government has had through implementing several cuts to farm assist payments over the past three or four years, most notably through the removal of the income disregard. When this Government took office, 70% of what a farmer earns was calculated for the purposes of assessing means for a farm assist payment. Over two years the Government removed that income disregard. Now, every euro a farm family earns is deducted directly from their farm assist payment, thus removing any incentive for production and to work hard. Despite the approach taken by the Government, farm families across the country continue to work hard, because that is their ethic and tradition. They are proud to be hard-working farm families. I represent a part of the country that has a higher number of people on farm assist than probably any other part of the country. There are 1,500 farm families in County Donegal availing of farm assist out of 10,000 nationally. I have seen grown men and women sit across a table from me in very distressed states. They are proud people who have worked hard all their lives but have seen their farm assist payment cut as a result of the changes the Government has introduced, thus putting their families in a situation of penury in which they are wondering how they can continue to operate their family farms.

Alongside this, over recent weeks the approach of the Government has led many farm families to believe that the Government does not want them to continue to operate as farm families and to be assisted in doing that. That approach can be seen in the review forms that have been issued over the last couple of weeks to many farm families in Donegal. Every year review forms have been issued to farm families which basically ask them if there has been a change in their circumstances and, if so, advising them to notify the Department. On this occasion the families have received comprehensive forms asking them to outline all income for the last year. It is a periodic review that is akin to a total review. I worked hard with a number of families to appeal reductions in their farm assist payments in recent months. Having succeeded with those appeals, over the last period of time they have once again received another review form. In this review form they are asked to indicate all income for the previous year, but they are not asked for their expenditure. At the bottom of each page it is stated in big, bold print that the penalty for a false statement is a fine or imprisonment or both. In addition, it is stated at the top of the form that the form must be returned with all documentation within 14 days as otherwise the payment will cease. These farm families feel they are being harassed by the Government and that the Government does not want them to continue availing of the farm assist payment. Will the Minister ensure that all of the farm families who have received these forms will be allowed appropriate time to return the documentation that is sought from them, as much of it will take time to collect? Second, will the Minister acknowledge that these farm families must be supported and reverse the very damaging cuts that have been implemented by the Government?

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
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I do not wish to be too early in wishing you, a Leas-Cheann Comhairle, the very best, as I believe the election is not to be held until the spring. I am still working out what the interpretation of the Irish spring is, but the daffodils are up in my garden so perhaps the spring is very close. However, I do not wish to make light of the issue the Deputy raises as it is very important.

This Government supports farming families. The farm assist scheme provides support for farmers on low incomes and is similar to the jobseeker's allowance scheme. Farm assist recipients retain the advantages of the jobseeker's allowance scheme such as the retention of secondary benefits and access to activation programmes. The 2016 Revised Estimates for the Department provide for expenditure of almost €85 million on the farm assist scheme, with approximately 8,800 individuals receiving a weekly payment under the scheme.

Changes introduced in the budgets of 2012 and 2013 brought farm assist into closer alignment with the jobseeker's allowance scheme's treatment of self-employed persons. However, it should be noted that farm assist customers continue to receive more beneficial treatment than other self-employed persons as payments received under the agri-environment options scheme or special area of conservation schemes are assessed separately from other farm income. With regard to this income, the first €2,540 is disregarded, then 50% of the balance and related expenses are disregarded, with the balance being assessed as means. The assessment of means for the purpose of qualifying for farm assist is designed to reflect the actual net income and looks at gross income, less any expenses necessarily incurred, from farming.

Income and expenditure figures for the preceding year are generally used as an indicator of the expected position in the following year. However, account is taken of any exceptional circumstances so as to ensure that the assessment accurately reflects the current situation. I outline in the formal written reply items with regard to the recent flooding, humanitarian grounds and the emergency fodder scheme.

The farm assist scheme must be kept under ongoing review by my officials from a policy and administration point of view. It is important to note that the farm assist scheme remains a flexible payment and that any farmer experiencing lower levels of income or cashflow issues, due, for example, to the recent bad weather, may ask his or her local Intreo office to review the level of means applying to his or her claim. The Deputy mentioned in particular the forms for review of the payment and the provision of an appropriate period to allow people to fill in the forms. As the Deputy has raised it with me, I will look at the forms and see if it is necessary to extend the time for review. I will talk to my officials tomorrow about that to see exactly where we are.

6:25 pm

Photo of Charlie McConalogueCharlie McConalogue (Donegal North East, Fianna Fail)
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It is exceptionally important that the Minister of State talk to the Tánaiste about the deadline being imposed on farmers for the return of the forms. For example, they are being asked for the first time for a total list of all livestock sold and bought over the last year, bank statements for the last 12 months and also final subsidy tallies from the Department of Agriculture, Food and the Marine, which do not come out until February. Naturally, many farmers have been left feeling they have been asked to do something with which it will be extremely difficult to comply. That is on top of the fact that they feel they are constantly getting a message from the Government that it would prefer if they were not availing of the farm assist scheme, which it would like to remove entirely.

As I pointed out, the removal of the income disregard with the change from 70% to 100% has meant that many farm families struggle now to make a living of any description on the family farm. They have to work day in and day out. In some cases, they have to work 50 or 60 hours per week in order to make an income, only to have every euro they make deducted from their social welfare payments, payments that would bring them up to what they would get on unemployment assistance if they were not making any income on the farm at all. It is a scandalous cut that the Government has introduced and its impact is that 41% of farm families have experienced a reduction in their farm assist payments. The cut must be reversed. I ask the Minister of State to go back and discuss it with his Department. It is certainly a commitment my party is making. It is something on which the Department must carry out an impact assessment. Simply put, the Government and, in particular, the Tánaiste do not realise the impact of this cut on so many families.

I thank the Ceann Comhairle for selecting this issue and I urge the Minister of State to ensure that all families who have received application forms are written to and given appropriate time to allow them to respond.

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
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I thank the Deputy. The Revised Estimate makes clear the Government's commitment. It commits €85 million to the farm assist scheme, which is significant. The record of the Government in assisting and supporting farmers right across the country is second to none. As we move from recession to recovery, there is an opportunity to review how we can support communities nationally. On the particular issue of the forms, the deadline and the onerousness of the burden of accessing the information, I will speak to my officials tomorrow to determine exactly how difficult it is to comply. I will have that discussion with them tomorrow.