Tom Hayes (Tipperary South, Fine Gael) | Oireachtas source

I thank the Senator for providing me with an opportunity to clarify the concerns in this area.

The new targeted agricultural modernisation scheme, TAMS II, measure will make €395 million available to farmers to be invested in infrastructure, facilities and equipment. The various areas targeted for support under TAMS II were identified through an extensive consultation process with all stakeholders, as well as through the SWOT, strengths, weaknesses, opportunities and threats, and needs analyses. In the light of what emerged from that process, it was ultimately decided to introduce six distinct schemes: the young farmer capital investment scheme; the dairy equipment scheme; the animal welfare, safety and nutrient storage scheme; the organic capital investment scheme; the pig and poultry investment scheme; and the low emission slurry spreading scheme. Following further consultation with the sector, it is proposed to introduce a dedicated investment scheme for tillage farmers, with new options for water harvesting measures which will be made available to all farmers and the addition of sheep fencing as an eligible investment item. These proposals are under discussion with the European Commission. Once agreement in principle has been reached, a formal application to amend the rural development programme will be submitted before the end of the year.

The objective of the dairy equipment scheme is to encourage, in particular, new entrants and younger farmers into milk production by providing them with a level of support to meet the considerable capital costs associated with the establishment of their enterprise and ensuring they have the most up-to-date technology available to compete in the modern dairy sector. Support is being provided for grant aid for investment in a select range of items, including important equipment for the dairy sector such as robotic milking machines, bulk milk tanks, milking equipment and storage and cooling equipment. A total of €50 million is being made available for investments in this area over the lifetime of the programme, with a standard rate of aid of 40% available. In addition, grant aid for an even greater range of dairy equipment and facilities is available to eligible young farmers under the dedicated young farmer capital investment scheme which has a total budget of €120 million allocated to it over the lifetime of the programme. The young farmer scheme also allows for the construction of new facilities, as well as the purchase of new equipment, and offers an enhanced rate of aid of 60% of the capital costs involved.

The first tranches of both the young farmer capital investment scheme and the dairy equipment scheme are now closed and all applications received are being processed. Interest in TAMS to date has exceeded expectations. Clearly, many farmers are looking once again at the benefits of investing in their enterprises and expanding production. While the first tranches of both schemes are closed, both schemes will remain available to farmers for the entire period of the rural development programme and open regularly for applications during that period.

The first tranche of the dairy equipment scheme closed for applications on 16 October. Over 1,000 applications have been received, which was significantly in excess of expectations. Each of these applications is being examined in the Department. Approvals can only commence when all of the required checks have been undertaken. This is a complex process. As all applications for TAMS Il must be made under a tranche-based approach, we are required to evaluate, rank and assess all applications received together. In this context, it is important to note applications cannot be approved individually on a rolling basis. All applications received in a particular tranche must be assessed and ranked against each other, according to the marking system advertised in advance of the tranche. Under EU rules, not every eligible application is automatically approved in every tranche. We are required to make a qualitative assessment of each one to ensure the funding available is targeted at the best projects.

The ranking and selection process described is under way and inspections will only commence when the first results are available. However, not every application will require a pre-approval inspection. Only about 10% of applications will be subject to such inspection. At this point, there is no reason to increase the rate of inspection. In fact, to do so would only delay the approval process. I am conscious that all of the applicants who have submitted online applications are keen to establish whether they have been successful in their application under the first tranche. I am making it a priority to process all applications as soon as possible. In the meantime, it should be remembered that payments continue to issue to applicants under the existing TAMS I dairy equipment scheme, with total payments to farmers expected to reach €19 million this year.

In short, it is not actually the inspections which are causing the delays but the pre-rating process.