Seanad debates

Thursday, 7 October 2004

Land Bill 2004: Second Stage.

 

11:00 am

Photo of Peter CallananPeter Callanan (Fianna Fail)

Yes. We understand that and from where it came. Senator Coonan made an excellent presentation and we will take an interest in some of his proposed amendments.

In an IFA statement made when the Bill was announced, Padraic Devilly welcomed the writing off of the Land Commission annuities of €200 or less for the 4,200 farmers in question. He was very pleased with this. He also stated there should be an offer of a capital buy-out of up to 50%, rather than the 25% on offer, to ensure maximum uptake. There are not many organisations that would do that. I am sure the taxpayer also has an interest in this issue.

I welcome this Bill as a generous means of winding up the affairs of the former Land Commission. It would have been easy for the Minister to present a factual technical Bill focused on the internal workings of the former Land Commission. Instead she has brought forward a Bill full of creative ideas that will benefit many and not just the members of the farming community, who have traditionally been seen as the beneficiaries of the Land Commission.

The Minister has described many benefits of the Bill but I would like to focus on three which I regard as the most significant, namely, annuities, the transfer of land to rural GAA clubs, sports clubs and community groups, and the reduction of red tape. We should all welcome these benefits. There are many others but the Minister has dealt with them at length.

Farmers with annuities are being given generous write-offs or significant discounts on their annual payments. Approximately 4,500 farmers with annuities of €200 per annum and under are to have their annuities, including arrears, written off. We must realise this is a substantial measure. Annuities are the half-yearly bills farmers receive, normally in May or June and again in November or December. Many farm families will appreciate one less bill coming through the letterbox, particularly just before Christmas. Any reduction in outgoings is always welcome and I think the Minister has done well to secure the financial sanction to bring forward such a measure.

I also welcome the discount on the redemption price of the annuities above €200 per annum. In this time of relatively low interest rates, I am surprised to learn that annuities can attract interest rates of over 10%. I recommend that every farmer with annuities above €200 per annum should actively consider this remarkable offer. It is not every day that one can get 25% off the redemption price of one's loan, but the additional option of reducing the interest rate means this scheme should be a real bargain for the remaining 2,300 or so farmers holding large annuities.

I cannot help wondering if the farming bodies have considered negotiating a deal with the banks or other finance houses to enable farmers to have easier access to such finance. These organisations may see this opportunity and offer farmers a low interest rate to enable them to avail of this offer. Every encouragement should be given and I expect the farming organisations to press this issue towards the end of the social partnership agreement. The measures are welcome in general, as I read in the newspaper.

I commend the Minister on her presentation. I note the Minister's warning to farmers that they should ensure that their titles are in order. My understanding is that the buy-out scheme will operate for a period of six months. Many families have failed to carry out the necessary administration pertaining to deceased parents' or, in some cases, grandparents' estates for a variety of reasons. However, I think that six months is a little short because people may have some difficulty in obtaining titles going back to the time of their grandparents. In addition, bits and pieces of land were mixed up, although the Land Commission sorted many matters out. I commend the good work of the Land Commission which operated for over 100 years. The Minister should consider extending that six month period. As the number of farmers is small, when the Bill is enacted, would it be possible for the Department to send the information directly to the farmers concerned? In many instances individual farmers may not be aware of the relevant details. Many farmers do not read newspapers and the Irish Farmers Journal may not carry the information. There is good news in this measure which will be of benefit to farmers, so perhaps a direct communication about it could be issued by the Department to farmers.

I now come to a difficult issue about which I share some of the concerns raised by Senator Coonan. Despite these great measures, I have one concern about the Bill, namely, section 4. This section provides that the Department may set off arrears of annuity due against other payments made by the Department. As the Minister is well aware from her long experience of dealing with farmers and agricultural matters, and particularly given the county she represents, many farmers rely on their EU payments to make ends meet. Having knowledge of both potential sides of this issue, I am sure the Minister has a firm idea as to how this provision will be implemented. I would appreciate it if she would give some indication to the House of how she envisages her Department applying this provision. It is a harsh measure and, as we all know, there will be a small coterie of people, from whatever sector of society, who do not want to pay anything. Some people have had and will continue to have difficulties in meeting repayments over the years. As the Minister said in her first interview with the Farming Independent, negotiation and listening are important. They will play a big role in this matter, to which I urge the Minister to pay particular attention.

I now wish to deal with the measure concerning trust lands, which particularly pleases me as a member of a local GAA club. Many organisations are pleased with the measure also, including my own local club. I realise the importance of local GAA clubs to the community and their influence in developing young boys and girls to be a part of the community by engaging in sporting activities. We often talk about what young people should or should not be doing but the GAA has done great work in this respect.

As regards trust lands, it is vital that such clubs should be free to develop and grow with their communities. Many clubs are fearful of investing in long-term development because of uncertainty over the ownership of their grounds. This measure will assist the transfer of such properties into the hands of those who actually use the grounds. Using this measure will allow GAA clubs, other sports clubs and community groups to take ownership of their grounds and remove any fears regarding long-term ownership of the land. The removal of any doubt about the future use of the land will encourage club development committees to pursue longer-term aims and developments and will underpin the position of clubs within the communities they serve. Anything that allows parish clubs to grow, develop and enhance the community will have my full support.

It is important to reduce red tape. Like every other farmer, I know that the paper mountain is of one the great challenges of modern farming. I welcome the single payment which will reduce the level of paperwork involved. I am delighted to see the Minister continuing the great work of her predecessor in continuing to reduce the paperwork that farmers must complete. I particularly welcome the removal of section 12, which required the Land Commission's and, latterly, the Department's approval before a subdivision of holdings could take place.

For many farm families, giving a site to a family member who is not going to inherit the farm itself is considered a fair means of settlement. Currently, any such division of more than one hectare requires the approval of the Department. While the original intention of this provision may have been to prevent the fragmentation of farms, economics have now driven farming in that direction and invariably the division of a site for a new house does not compromise the holding itself. Indeed, many young people in rural communities would find it difficult to establish their family home without the aid of a site from their parents. Rural communities would be deprived of many young talented people if these family arrangements were not established practice and, conversely, many elderly farmers would not have family support to help and assist them in their old age. Having to apply to the Department for such subdivisions only increases the paperwork and if solicitors are involved, as they usually are, it increases their fees. Therefore, I am pleased to see that the provision is being repealed.

I also welcome the simplification of the vesting process. Anything that eases the transfer of land to the farmer is good news for everyone and particularly for farmers who are working the land. These measures may appear to be minor but they will have a large impact on the farming community.

I thank the Minister for attending the House today. The Bill is a short one but contains important measures which will be of benefit to farmers, the rural community and the country at large. The legislation is appreciated. I commend the departmental staff on their work, as well as the former Minister and his team. I also commend the new Minister and her team, including the Ministers of State, Deputies Brendan Smith and Browne. The Minister is always welcome in this House and we know the job will be well done in her hands. We look forward to that continuing. I congratulate her on her appointment.

In conclusion, however, I wish to put down a marker, which is somewhat different from that of Senator Coonan. The Minister has a difficult task ahead of her in dealing with the sugar beet industry. She knows that and I heard her talking about it on "County Sound" last week. It is an extraordinarily difficult matter which must be carefully managed, as the Minister is aware. If it is not well managed and protected, we will lose an industry in its totality. We are relying on the Minister in this regard. As she said, it may not be a major issue in Donegal or that region generally, but in the southern region it is important both for employment and farming incomes.

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