Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 249: To ask the Minister for Agriculture and Food the maximum rate possible under the second early retirement scheme, governed by Council Regulation No. 1257/1999; if the Government is paying this maximum rate; if not, the reason therefor; and if she will make a statement on the matter. [2521/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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Council Regulation No. 1257/1999, which governs the early retirement scheme introduced in November 2000, provides for a maximum yearly pension of €15,000 subject to an overall maximum payment of €150,000. My Department's proposals for the scheme, which is one of the measures in the CAP rural development plan for the period 2000 to 2006, included provision for annual increases in pension over the period of the plan. The European Commission rejected this proposal and insisted that a fixed rate be set instead. My Department then proposed a rate that was the average of the scale initially proposed. This was acceptable to the Commission and a maximum rate of €13,515 is provided for in the scheme. Any change in the rate of payment would require a formal amendment to the CAP rural development plan and, if approved, could not be made retrospectively. Any increase granted would not benefit existing participants in the early retirement scheme which commenced in 2000, ERS2. It would be limited to new entrants.