Jerry Cowley (Mayo, Independent)
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Question 332: To ask the Minister for Agriculture and Food if her Department will go ahead with its action programme for the implementation of the EU nitrates directive; her views on whether she should honour the Government's commitments given to sustaining progress; if her attention has been drawn to the disastrous future effects if suppliers have to cut stocking rates, consequently leading to an increase in milk production costs (details supplied); and if she will make a statement on the matter. [14373/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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The implementation of the nitrates directive is a matter in the first instance for the Minister for the Environment, Heritage and Local Government.

In October last, Ireland submitted an action programme to the European Commission for further implementation of the nitrates directive. In December the Commission conveyed its view that the action programme was not complete and did not comply with the requirements of the directive or with the judgment of the European Court of Justice against Ireland, which had been delivered in March, 2004.

Subsequently, my Department worked closely with the Department of the Environment, Heritage and Local Government on the preparation of an initial response to the Commission. This response was sent on 20 April. I understand that a revised action programme, on which my Department has been consulted, will be sent to the Commission shortly. Ireland has already submitted proposals for a derogation from the general limits laid down in the nitrates directive, designed to allow farmers to operate, under appropriate conditions and controls, up to a level of 250 kg. of organic nitrogen per hectare.

As regards Sustaining Progress, the Government has already delivered fully on its undertakings in respect of the nitrates directive. A revised REPS was introduced in July 2004 which delivered average increases in payments of 28%. I am pleased to note that demand for the new scheme is very strong and that participation is about to reach an all-time record with every sign of continued growth.

Improvements in the on-farm investment schemes were also introduced in line with undertakings in Sustaining Progress. The vast majority of Irish farmers can now avail of grant-aid as the ceiling for eligibility under the schemes has been raised from 200 to 450 income units — equivalent to an income of €114,300. The investment ceilings have also been raised from €50,790 to €75,000 in the case of farm waste management works. A standardised grant rate of 40% now applies for most investments, twice that which would have been available to many farmers previously. In addition, increases have already been applied to the standard costs used to calculate grant aid, providing a solid basis for farmers to continue their efforts to improve standards in farming.

The scheme of capital allowances for expenditure on farm pollution control has been extended to the end of 2006 and my colleague, the Minister for Finance announced in his budget on 1 December 2004 that the writing down period of special tax relief for expenditure on farm pollution control measures will be reduced from seven to three years in order to assist farmers to comply with the nitrates action programme.