Michael Ring (Mayo, Fine Gael)
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Question 327: To ask the Minister for Agriculture and Food the position regarding her review of the farm early retirements scheme; her plans to abolish this scheme; the number of persons who have availed of the scheme since it was first introduced; the value per annum of payments made under this scheme; the value of payments made each year since the scheme was introduced; the estimate of the value of payments made each year since the scheme was introduced; if the payments had been index linked; and if she will make a statement on the matter. [27441/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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I have not taken a decision on the future of the early retirement scheme. The European Council regulation covering the current scheme will expire in December 2006. The Council regulation on rural development for the period from 2007 to 2013 again includes provision for member states to operate early retirement measures. No decisions have yet been taken regarding the schemes to be operated in Ireland under this regulation.

The early retirement scheme was introduced as one of a number of instruments to improve the age structure of Irish farming and improve the viability of farm holdings. From that point of view, the first scheme from 1994 to 1999 was not unsuccessful. However, take-up of the current scheme has fallen short of expectations, and an expenditure review carried out in my Department in 2004 raised a number of questions about the effectiveness of the scheme in achieving its objectives. Structural reform is still a priority both at home and at European level, and we still need to provide opportunities for young farmers. In framing proposals for the next rural development round we need to consider how best to achieve those results in the light of the funding and the options that are available.

Details of the number of participants who entered the 1994 scheme of early retirement from farming, which closed to new applicants on 31 December 1999, and the current scheme introduced in November 2000, are set out in the table below for each of the years 1994 to 2005. The amounts paid each year are also shown.

Up to 31 December 1999 the early retirement scheme was 75% funded by the EU. Since 1 January 2000 the level of EU funding is 50%.

The rate of pension payable under the 1994 scheme of early retirement from farming is the maximum amount provided for by the European Council regulation under which the scheme was introduced. My Department's original proposals for the current scheme, which commenced on 27 November 2000 and is one of the measures in the Common Agricultural Policy, 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 on legal grounds that a fixed rate be set instead.