THE DEPARTMENT of Agriculture underspent its budget by €226 million last year but can only carry over €29.834 million into this year’s funds, it has emerged.
Minister for Agriculture Simon Coveney said the underspend was because original programme allocations were not drawn down or “there were savings due to improved efficiencies during the year”. It “did not arise as a result of a decision by the department to withhold payments”, he said.
Irish Farmers’ Association president John Bryan said “farmers will be very annoyed that farm schemes were targeted once again in last year’s budget for massive cuts”. Farm schemes “should be paid out in full in the year in which they are due, as any delays are creating serious cash flow problems for farm families”.
Mr Bryan called on the Minister to ensure the carryover of funding “has no impact on budgetary decisions for the current year or future Government support for critical farm schemes which underpin the primary agricultural sector”.
Mr Coveney revealed the underspend during agriculture questions in the Dáil. He said “every effort was made to make prudent provision for liabilities at the beginning of the year”. There was inevitably “some degree of uncertainty in determining the appropriate level of budget for various schemes and programmes”.
He told Fianna Fáil agriculture spokesman Michael Moynihan €10 million was underspent on administration, €18.7 million on the eradication programme and €30.6 million on the suckler cow welfare scheme, which would be paid in 2012. Also, €24.2 million was not spent on marketing and processing schemes and €20.4 million was not spent due to the temporary closure of the targeted agricultural modernisation scheme.
