Brian Ó Domhnaill (Fianna Fail)

I thank the Minister, who has had a long day, for being here tonight. It is important to have a Cabinet Minister here to hear what we have to say. The REPS programme has been very successful and contributed significantly to the quality of rural life. Since 1994 more than €3 billion has been spent on the scheme benefiting tens of thousands of farmers, their families and communities.

The scheme helps to supplement farm incomes which are dwindling year on year. Its purpose was to benefit the local environment following an EU directive. Farming is one of our oldest indigenous industries, along with fishing, and merits support on that basis. The alternative for many farmers who would not be eligible to re-apply for REPS and go on to the new scheme would be to avail of a farm assist scheme, a subvention programme operated by the Department of Social and Family Affairs, which is equivalent to the dole, paying €204 per week, and is means-tested. If those farmers who do not now qualify for the farm assist were left with that as their only means it would be an additional burden on the Exchequer.

According to the Teagasc report published last week, the average farm income is approximately €17,000 per farm. In the north west that figure was approximately €8,600 per farm. The average REPS payment was €6,200 per farm. Taking that away leaves farmers with next to nothing. I spoke to farmers over the weekend and met the county executive of the Irish Farmers Association and saw farmers at my clinics in Donegal. They are all very worried because they use the money they get from the REPS payment to subvent other loans and their incomes. For example, it services the loans they have taken out to deal with the 40:40:20 investments under the farm waste management scheme.

I appreciate that there is EU pressure on the Department of Agriculture, Fisheries and Food to consider a new mechanism. The Irish model has been very successful and may be a victim of its own success. The Department must meet the farm organisations as quickly as possible to discuss this issue. I understand that talks may have broken down and while I am not laying blame we need to open the channels of communication immediately.

There should be a cost-benefit analysis of this decision because while it may save money in one Department it may cost money in another, the Department of Social and Family Affairs. Farmers need clarity on the new scheme. This is a menu scheme similar to one in the North of Ireland which runs from 2007-13 with available resources of £220 million, including EU money, which aims to sign up 18,000 farmers by 2013. The farmer selects the area from which he wishes to gain money. There must be absolute clarity on this.