Ireland is expected to be allocated a total of £1.74 billion or £250 million a year until 2006 in EU rural development cash at a meeting of agriculture officials from the member-states in Brussels today, it was reported yesterday.
The funding represents between 50 and 70 per cent of the costs of four programmes co-financed by the Government: the early retirement scheme; the rural environmental protection scheme; the disadvantaged areas scheme; and the forestry scheme.
It may be supplemented at a later stage should the Government decide to use some of its separate £2.9 billion structural funds allocation on rural development.
Ireland's share today represents 7.3 per cent of the cash allocated at the Berlin summit under the CAP fund "accompanying measures budget". The Irish share, Commission sources say, is largely based on its historically high takedown of these funds. For example, some 9,000 farmers have already availed of the early retirement scheme.
But the allocation falls far short of the demands of the Irish Farmers' Association, which insists the figure is £34 million short of what was allocated to the same schemes this year. The IFA president, Mr Tom Parlon, said yesterday the figure was not sufficient to ensure the continuation of the schemes unless the Government increased its contribution.
The Minister for Agriculture, Mr Walsh, last night welcomed the allocation.
"Ireland has done very well in these negotiations, and what it means is that Ireland will receive £250 million per year until 2006 for these key schemes," said a spokesman for the Minister.
"This will mean that in the period Ireland will receive a total of £1.74 billion for the early retirement, rural environment, forestry and headage schemes," he said. This annual figure compared well to the £270 million which was received last year.
Mr Walsh praised the work put into the negotiations by the secretary-general of the Department, Mr John Malone, and his officials.
There was, however, some concern in Government circles last night about the leaking of the figure before the official announcement, which is expected later today.
A Government source said it appeared the Irish farming lobby did not seem to know when it was doing well and there could be objections from other countries about Ireland's share.
The take-up under the schemes in Ireland has been higher than in any other European country other than France, where the early retirement scheme has been very successful.
The so-called "accompanying measures" were introduced by the former commissioner for agriculture, Mr Ray MacSharry, when he reformed the CAP in 1992.
The schemes, designed to get money to farmers directly rather than through produce support payments, are 75 per cent funded by the EU.