Written answers

Tuesday, 28 November 2006

Department of Agriculture and Food

Departmental Expenditure

10:00 am

Photo of Denis NaughtenDenis Naughten (Longford-Roscommon, Fine Gael)
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Question 387: To ask the Minister for Agriculture and Food the headings under which her Department is expecting to have an underspend in 2006; the projected underspend under each heading; the reason for the underspend; and if she will make a statement on the matter. [40281/06]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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Most of the schemes operated by my Department are demand-led measures on which expenditure in any one year is difficult to predict. It is very important that adequate provision is made for such schemes in the annual Estimates. For 2006, the gross provision for the Department was €1.516b, and it is estimated that approximately 94% of this allocation will be spent. While it is not possible to predict the final outturn with precision at this point, savings in the region of €90 million could arise.

Of the total projected savings, over €80 million relates to demand-led schemes. These include measures under the CAP Rural Development Programme (REPS, land mobility and forestry), as well as on-farm investment schemes. The balance is likely to arise primarily in the animal health, research and administrative budget areas.

All of the schemes are subject to variables such as farmer demand, animal disease trends, the pace of progress on approved projects and market conditions. Demand for such schemes is never easy to predict with precision, and in recent years has been impacted by the introduction of the decoupled Single Farm Payment, the Nitrates Directive, and the relative proximity of a new Rural Development Programme. In the case of forestry, issues such as the price of land, and competing alternative uses, were also a factor. Reducing levels of animal disease, and staff savings arising from improved technology and the centralised administration of the Single Farm Payment, are also likely to lead to savings in the relevant Subheads.

I regard it as essential that the measures referred to above, which protect the animal health status of this country, provide vital investment capital and boost income for the farming community, and others in the agri-food sector, are adequately funded. My policy has been to ensure sufficient funding for potential demand under these very important measures, and I will continue to do so in the future.

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