Michael Healy-Rae (Kerry South, Independent)
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Question 537: To ask the Minister for Agriculture, Food and the Marine if he will review a matter (details supplied) regarding changes in the budget; and if he will make a statement on the matter. [5147/12]

Simon Coveney (Cork South Central, Fine Gael)
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It is widely recognised that the Disadvantaged Areas Scheme is a very important one for this country, as the total area designated as disadvantaged is almost 75% of Ireland's total land area. From an economic perspective, the Scheme is particularly significant, contributing to the support of in excess of 100,000 Irish farm families, whose ability to farm is restricted by the physical environment and, in particular, the impact of the prevailing wet cold climatic conditions. The Scheme, which is co-funded by the EU, is an integral part of Ireland's Rural Development Plan, 2007/2013, and as such, any proposed change to Scheme criteria requires the agreement of the EU Commission. In this regard, therefore, the changes announced in the context of the recent Budget have been submitted to Brussels; the Commission's response is expected shortly.

The budgeted expenditure under the 2012 Scheme will be reduced from €220 million to €190 million and, in order to achieve the €30 million saving in expenditure, it is proposed to introduce specified changes to the Scheme eligibility criteria for 2012. This will be achieved by making technical adjustments to the Scheme criteria to ensure that the aid payment is focused on farmers, whose farming enterprises are situated exclusively in Less Favoured Areas and who are making a significant contribution to achieving the objectives of the Scheme.

Any analysis of the Scheme must take into account the impact of the various enterprises on the local economy. As is clearly evident, the main benefits arise from (i) beef rearing, (ii) dairying and (iii) sheep breeding enterprises. There are an increasing number of applicants under the Scheme, who have discontinued livestock (cattle or sheep) farming, but who continue to benefit from aid under the Scheme by grazing some horses on their land. It is proposed that horses will no longer be eligible for the stocking density calculation on the basis that these applicants' contribution to the rural economy is minimal. However, equine breeding enterprises will continue to be eligible on the basis of the contribution they make to the local economy.