Demand-led schemes may mean underspend

Agriculture: Minister for Agriculture and Food Mary Coughlan said she hoped there would not be an underspend in her department this year because of delays in applications for demand-led schemes.

Pre-Budget figures provide funding of €1.72 billion for the areas of agriculture, food and forestry. The estimate represented a 4 per cent increase over the 2007 estimate, which was €1.67 billion.

Responding to criticism from Fine Gael that her department could underspend again this year by as much as last year's €107 million, she conceded there could be an underspend this year too.

"Many of our schemes are demand-led but I am glad to say there is a strong take-up in areas such as the Rural Environment Protection Scheme, which had been delayed."

Irish Farmers Association president Pádraig Walshe said his initial assessment was that the figures met the commitments in the partnership agreement.

He said farmers were investing heavily in environmental schemes and upgrading farm facilities, and the Government's support schemes were vital to maintain this momentum.

© 2007 The Irish Times

This article appears in the print edition of the Irish Times