Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 501: To ask the Minister for Agriculture and Food further to her announcement on 13 November 2006 on the payment of the ERS top-up, when her Department became aware of the acceptability of the EU to an Exchequer top-up of the ERS pension; and if she will make a statement on the matter. [38722/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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My Department had raised the possibility of an increase in the rates of pension payable under the Early Retirement Schemes with the European Commission on a number of occasions. The Commission's consistent response was that increases for existing participants would not be eligible for EU funding and that index linking was ruled out by the EU Regulations. I therefore decided to explore the possibility of paying increases from the national exchequer. However it was necessary to satisfy the Commission Services that such increases would be admissible under the EU Regulations governing the payment of State Aids. This required some correspondence and direct discussion at official level. It was in March 2006 that I received confirmation from the Commission that they would not oppose the payment of the increases. These increases will cost some €33 million extra over the remaining period of the two Schemes, and some 5,000 retired farmers will benefit from them.