Pat O'Neill (Fine Gael) | Oireachtas source

I welcome the Minister to the House to discuss these important issues for people in rural areas. I congratulate him on his guidance of his fellow European Ministers, the Commission and the Parliament during the Irish Presidency in securing what is a very good deal for Ireland. In the Celtic tiger years there was something of a loss of interest in farming, including on the part of successive governments. Under this Minister and this Government, however, agriculture has been restored as a priority. It is a sector that has contributed significantly to our exit from the bailout given the more than €10 billion in exports it has contributed in the past year. The confidence of major companies like Glanbia and the Kerry Group in our farming industry is clear. The innovation centre the Kerry Group is building in Kildare will create more than 800 jobs, while Glanbia's large milk processing plant in south Kilkenny will provide some 2,000 ancillary jobs. It is important that funding is maintained for rural areas; after all, we are still largely a rural country. For every €1 that is allocated to farming, €4 is spent in the local economy, which is an excellent return.

In regard to what has been referred to variously as the suckler scheme, genomics scheme and beef data scheme, people are already inquiring as to how they might avail of it, whether by way of an application form or by participation in a discussion group. Will the Minister provide clarification in that regard?

In respect of the green low-carbon agri-environment scheme, GLAS, which is effectively a new REP scheme, the Minister has indicated that farmers will be asked to fence off water courses and similar features. Some farmers are on meters and are supplied with water from local authorities. Where there is no water on farms, however, I ask the Minister to consider whether a grant might be made available under the targeted agricultural modernisation scheme, TAMS, to provide water in cases farmers are obliged to fence off water courses and so on.

I welcome the top-up for young farmers in a context where 60% of farmers in this country are aged under 35 years. The Minister indicated that a young farmer may, over five years, receive up to €16,000 under this scheme. A young person setting up business as a farmer may not have a tax liability in the first few years, but where there is such a liability, a difficulty arises in that one's single farm payment is included in one's income and is, as such, taxable. I am asking that a measure be put in place whereby the top-up payment would not be taxable, which would give a boost to young farmers. Giving them a grant of €16,000 and requiring that 50% be returnable via taxation leads to a much smaller benefit. Will the Minister undertake to liaise with the Revenue Commissioners on this issue?

Recognition has been given to partnerships, but what is the situation in regard to partnerships between father and son? How will such arrangements work in respect of the 60% grant for buildings? If, say, a young man goes into partnership with his father, even where land is transferred, any building will have to be done on the existing farmyard. Will the Minister comment on that?