Bernard Durkan (Kildare North, Fine Gael)
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Question 154: To ask the Minister for Agriculture, Fisheries and Food if he is satisfied regarding the adequacy of the budgetary provisions of his Department to meet in full and without restrictions all commitments and liabilities including those projected to the end of 2009; and if he will make a statement on the matter. [4916/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The Estimate for my Department is prepared to provide for liabilities that are expected to arise in the year in question. A substantial element of the funding in the Vote for my Department each year is provided for demand led schemes that are subject to variables such as farmer up-take and the rate at which approved projects are completed which in turn is influenced by market and economic conditions. The nature of many schemes and the potential liability is that there is always a degree of uncertainty about the final outturn. The situation in relation to 2009 was complicated further by the fact that the Budget was presented by the Minister for Finance in the context of very careful consideration by Government of the allocation of scarce resources in the context of the national economic and fiscal situation.

Against this background, a particular difficulty has arisen in relation to the funding for the Farm Waste Management Scheme in 2009. In addition to the general situation I have outlined, other factors which had an influence on the preparation of the 2009 Estimate were the closing date for the scheme, the adverse weather conditions which impeded construction work, the credit shortage and deterioration in market conditions as well as the fact that the Government provided a Supplementary Estimate of €195 million for the Scheme prior to the Budget in order to meet liabilities arising under the Scheme. In these circumstances, €125 million was provided for the Scheme in the 2009 Budget. In the above context and given that a large number of claims were submitted before the expiry of the deadline for the completion of work, including over 14,000 claims in December, this funding is inadequate to meet the claims on hands.

Last week, the Government took a number of decisions on the overall Expenditure Control and Economic Strategy that included the funding for the Farm Waste Management Scheme and arrangements for payment of grant aid on a phased basis. My Department is in discussion with the Department of Finance on the implications for the Department's Vote and the details that will be published in the Revised Estimates Volume next month.