Andrew Doyle (Wicklow, Fine Gael)
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Question 175: To ask the Minister for Agriculture, Fisheries and Food the action being taken to ensure that farmers affected by the failure of his Department to honour its contract with farmers under the terms of the farm waste management scheme do not have to pay additional interest accruing from extending short-term loans to long-term loans; the commitment which has been made by the banks in relation to interest payments due on loans that have to be extended due to the delay in payment by his Department; and if corrective action is being taken in his Department to ensure that such a breach of trust does not happen again. [12412/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The arrangements for payment of grants under the Farm Waste Management Scheme on a phased basis have been confirmed with 40 per cent being paid this year as claims are approved. A further 40 per cent will be paid in early January 2010 and the remaining 20 per cent in January 2011. I have also announced that a special ex-gratia payment not exceeding 3.5 per cent of the value of the deferred amount will be made to farmers whose Farm Waste Management grants have been partially deferred. This payment will be made in January 2011 along with the final instalment.

I do not accept that there has been a breach of trust in relation to the payment of grants under the Farm Waste Management Scheme, which has been the most successful on-farm investment scheme since our accession to the EU.

The financial arrangements in respect of any loans taken out by farmers for the purposes of carrying out investments under the Farm Waste Management Scheme are entirely a matter between the individual farmers and financial institutions concerned.