Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 74: To ask the Minister for Social and Family Affairs his plans to review the means test for farmers applying for the old age non-contributory pension; and if he will make a statement on the matter. [22881/05]

Séamus Brennan (Dublin South, Fianna Fail)
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I understand that the Deputy is concerned in particular about the current arrangements applying in the case of old age pension where a landholder leases land or is otherwise in possession of land which is lying fallow or idle.

Where land is let on short-term lettings such as the 11-month system, the income from such lettings is calculated as cash income for the purpose of the means assessment for old age pension. Necessary expenses incurred by the owner, such as auctioneer fees, fencing or fertilising between lettings are deducted from the gross letting income.

Where land is lying fallow or idle, there are two options for the assessment of means. If the Department is satisfied that the pension claimant is depriving himself or herself of an income in order to qualify for a pension, or a pension at a higher rate than would otherwise be the case, the relevant assessment is the income which would be received if the land was let; where the Department is satisfied that this is not the case, the value of the land is obtained from the Valuation Office and is assessed as capital for means purposes.

While there are no immediate plans to change the present arrangements in this regard, I have in recent times indicated that I am examining the distinction that exists between contributory and non-contributory pensions as regards earning entitlements and means testing as part of overall reforms in the pensions area.