Paudie Coffey (Fine Gael)

In recent weeks I have met many farmers who were approved for grant aid under the farm waste management scheme. These farmers understood they had a clear contract with the State and that the specified grant moneys would be paid. I was horrified to discover that many of the farmers are seriously exposed as a consequence of the large loans they took out in good faith on the understanding that grant moneys would be paid by the Department.

These farmers were obliged to upgrade their farm buildings and infrastructure to comply with nitrates directives and they did that. However, they now find themselves with serious cash flow difficulties that could put many of them out of business if they are not addressed urgently. Farmers spent a great deal of money in an effort to comply with these regulations and are now hugely indebted to the banks. As a result, some of them find themselves in difficult, if not dire, financial circumstances. They are depending on these grants as the means by which their farms will survive. I have met many young farmers who are exposed to the banks for more than €100,000 and they cannot wait much longer for these grant allocations to be paid. Cash flow is now very restricted and could possibly be withdrawn by banks if farmers cannot make repayments on their loans.

These farmers seek only some certainty with regard to the contract they had with the State and the promise of grant aid. I urge the Minister of State, Deputy Sargent, to ensure that his Department issues to the approved applicants letters of comfort which would provide them and the banks with some certainty in regard to payments. I understand the Department faces a shortfall of €105 million in the allocation for this scheme in its 2009 budget and that it is intended to deal with this matter in the Revised Estimates. Will the Minister of State tell the House when these Revised Estimates will issue? Will he ensure that we do not rob Peter to pay Paul, that is, that we do not make up the shortfall by withdrawing funds from other farm assistance schemes?

I come from a predominantly rural constituency in County Waterford where many young farmers are exposed and where restricted cash flows could put them out of business. I understand 424 farmers are still awaiting payment under the farm waste management scheme. The Department is introducing a deferred payment system whereby 40% will be paid in year one, another 40% in year two and the final 20% in year three. I urge the Minister of State to ensure the initial payments are paid to the approved farmers as soon as possible to ease their financial difficulties and help the cash flow in farming enterprises. Farm waste management schemes were set up as a regulatory requirement and farmers have had to comply with the guidelines of the Departments of Agriculture, Fisheries and Food, the Environment, Heritage and Local Government and the EU. They have done so and farmers cannot be left in the lurch or isolated. They depend on the Minister of State to assist them in this time of difficulty and to support farming enterprises so that they stay in business and keep our economy and rural Ireland going. In the interim I ask the Minister of State to examine giving tax credits for any interest paid on bridging loans to give farmers some relief in this regard. Fine Gael has tabled an amendment to this effect in the Financial Emergency Measures in the Public Interest Bill being debated in the Dáil. I hope the Minister of State and the Government do not ignore this proposal or guillotine the Bill without giving it due consideration. I hope to hear some positive news for farmers and a clear statement from the Minister of State when farmers will be paid this grant.