Smith explains scheme suspension decisions

THE decisions to suspend new applications for Early Retirement and Young Farmer Installation schemes for 2009 were taken reluctantly, Food Minister Brendan Smith told the Macra na Feirme rally in Salthill, Galway.

He said he attached great importance to the schemes which can obviously be reviewed in the context of the estimates for next year and beyond. But he wanted to be honest and fair with the delegates by saying he could not indicate when the Government finances will be in a position to have the suspensions on both schemes lifted.

“Believe me when I say that taking these types of difficult but necessary budgetary decisions is not easy, but I am of the firm view that they are in the best interests of the country. I can assure farmers and the wider rural community of the Government’s commitment to the future of the agriculture, fisheries and food sector.

“I will continue to do all I can to ensure the delivery of the type of supports necessary for our most important indigenous industry,” he said.

Minister Smith said the need to restore stability to the public finances in the best interests of the future of the country, left no option but to take difficult decisions on public expenditure levels.

Minister Smith said he had outlined to Catherine Buckley, president, and a delegation from Macra at a meeting last week that in making choices on the use of resources his strategy was to protect those measures which will ensure the development of a productive and competitive sector into the future.

“I have taken decisions involving difficult choices in order to ensure funding for these schemes, which have been identified as priorities for the sector.”

Mr Smith said while new applications for 2009 had been suspended, he had still provided almost €57m for commitments under Early Retirement and Young Farmer Installation schemes.

“In the meantime, I am particularly pleased that the Minister for Finance agreed to renew a number of farm tax measures worth over €65 million which will bring about improvements in land mobility that will, in turn improve productivity and efficiency,” he said.

Minister Smith said the possibility of further measures specifically targeted at young farmers will be considered in the Finance Bill.