Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 99: To ask the Minister for Agriculture, Fisheries and Food if he will reverse the budget 2009 cuts in disadvantaged areas in view of the modulation cut to the single farm payment; and if he will make a statement on the matter. [43961/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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My approach in preparing the 2009 Estimates for my Department was to focus available resources on the measures which support the maintenance and growth of the productive capacity of the agri-food sector. The 2009 Estimates provide over €1.8 billion for my Department, and, when combined with EU funding of €1.4 billion, means that total expenditure in 2009 by my Department will amount to over €3.2 billion.

While difficult decisions had to be taken in light of the situation of the public finances, account also had to be taken of the very high level of investment by the Government in recent years, when significant additional financial resources were committed to areas such as the Rural Environment Protection Scheme, where the rates of grant had been increased by 17 per cent, the new Suckler Cow Welfare Scheme and the Farm Waste Management Scheme and, indeed, the 8% increase in rates under the Disadvantaged Areas Scheme itself, introduced in 2007.

With regard to the 2009 Disadvantaged Areas Scheme, I decided to reduce expenditure for 2009, by reducing the maximum area limit to 34 hectares (84 acres) and by a small increase in the minimum stocking density requirement. While overall expenditure will fall, almost 67,000 farmers will not suffer any reduction in their payments as a result of the introduction of the 34-hectare limit. Furthermore, these farmers, as well as all claimants under the Scheme, will continue to benefit from the substantial increase of 8% in the rate of aid introduced by the Government in 2007. In addition, of the 102,500 farmers who benefit under the Disadvantaged Areas Scheme, in excess of 50,000 of these also benefit under REPS, while in excess of 47,000 also benefit under the Suckler Welfare Scheme, which introduces a new stream of payments to farmers in 2008. It should also be taken into account, that, in addition to the payments under these Schemes, a further €920 million was paid to farmers with Disadvantaged Area lands under the 2007 Single Payment Scheme.

The total amount of €220 million payable to farmers under the 2009 Disadvantaged Areas Scheme is part of the overall substantial injection of funds paid to farmers situated in the areas and the Scheme continues to be one of the best funded Disadvantaged Areas Schemes in the European Union.

Notwithstanding the difficulties in the public finances and the decisions I have taken against that background, the position is that in excess of €3.2 billion will be spent next year by my Department in support of agriculture, fisheries and food. It is important to get through this challenging period and continue towards achieving the full potential of our most important indigenous industry when the economy begins to grow again.

With regard to the increase in Modulation, agreed as part of the CAP Health Check, the suggestion that farmers will lose money as a result of this decision is totally misleading. In fact, farmers will receive increased payments of over €70 million over the next four years, which will come from the access to unused funds in our SPS ceilings, also agreed as part of the CAP Health Check. This is additional money that will go directly into farmers' pockets through new measures, as under current rules it cannot be accessed, because of the complex requirements governing the SPS.

In addition, the agreed rates of additional modulation will generate in the region of €120m in total over four years in transfers from the Single Payment Scheme to Rural Development. This money will remain in Ireland and will be used for payments to farmers under the Rural Development Programme. Again we will need to decide how these funds can be passed back to Irish farmers within the limitations set down in the new Regulation.

Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 100: To ask the Minister for Agriculture, Fisheries and Food if he will reverse the decision to cut the suckler cow welfare scheme; if his attention has been drawn to the impact of same in Counties Roscommon and Leitrim; and if he will make a statement on the matter. [43960/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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In the'Towards 2016' Partnership Agreement, a commitment was made to provide funding of €250 million over the five years 2008 to 2012, in support of a suckler scheme. This commitment is being honoured.

Based on the very significant level of participation, the cost of the scheme, at a rate of €80 per cow, will be some €77 million for 2008, of which €33 million has been allocated in my Department's Estimate for 2008. A further €44 million is provided in the 2009 Estimates to pay for the remaining 2008 born calves.

To ensure that the scheme is continued within the €250 million budget, it will, on current levels of participation, be necessary to reduce the rate of payment in future years. The rate of payment for the remaining years of the scheme will be determined by reference to the continuing rate of participation. The 2009 grant rate will be advised to participating farmers before the end of 2008.

Almost 54,000 farmers have joined the scheme nationally and over 5,300 of the applicants are in Counties Roscommon and Leitrim.