Dealing with BSE and foot-and-mouth disease has led to a substantial increase in spending by the Department of Agriculture this year.
Figures given to an Oireachtas comittee by the Minister for Agriculture, Mr Walsh, showed total gross expenditure of almost £1.2 billion, the highest figure on record and £284 million more than sought in the annual estimate last November.
The major reason for the increase, was the cost of the market support measures introduced in the wake of the BSE crisis of November last year when markets for Irish beef collapsed around the world, the Minister said.
The special EU-Government scheme to buy and destroy Irish cattle at prices of up to 90p per pound has already cost £110 million in payments to farmers, rendering the carcasses of over 275,000 cattle and storing the meat-and-bone meal.
Mr Walsh said that this support measure has meant prices to Irish producers have been maintained in the order of 88p to 90p per pound. The Department estimates that, in market terms, the supports have been worth £200 million to farmers.
The Minister said the effort to prevent the spread of foot-and-mouth had cost almost £13 million so far. The Department said £6 million had been paid to farmers in compensation.
Other increased expenditure outlined by the Minister included outlay on the Rural Environment Protection Scheme, Early Retirement Scheme and area-based payments, formerly headage payments, which amounted to over £400 million.