The Department of Agriculture estimate of £355.194 million for spending in 1998 shows an overall decrease of 9 per cent on last year, partially due to the transfer of forestry to the Department of the Marine and a fall in structural funding.
The estimates reflect the ongoing changes in the industry. Due to get more money are: the Rural Environment Protection Scheme (REPS); Early Retirement Scheme; the LEADER II rural development programme; and the National Beef Assurance Scheme.
There are reductions in the amounts provided for headage payments to farmers for their animals, schemes for on-farm investment, general structural improvement schemes and farm diversification.
The Department said last night the 26 per cent fall in headage payments in the estimates was due to payments in advance to farmers in last year's allocation of £119 million, the strength of the pound and diminished structural funding.
The Tribunal of Inquiry into the Beef Processing Industry still features in the accounts, with £10.5 million set aside for payments due mainly to lawyers, £6 million more than last year.
The impact of the BSE crisis is also evident in the estimates. The Department has set aside £7 million for the rendering industry which deals with specified risk material from cattle and renders and stores bone meal from herds where BSE has been identified.
There is provision too of £6.5 million for computerisation for the National Beef Assurance Scheme which has become necessary since the BSE crisis. This is the second year there has been an increase in the amount for the REPS scheme. The amount being provided is £145.5 million, a 43 per cent increase on the expected out-turn at the end of this year.
Because of increased demand, the scheme for early retirement will have additional funding. It has been increased from £61 million to £71 million. The LEADER II and Interreg programme funding increases from £11.2 million to £20.7 million.
The Irish Farmers' Association president, Mr John Donnelly, accused the Government of breaking its pre-Budget promise that there would be no cuts in headage payments and that the control of farmyard pollution scheme would be reintroduced as a priority.
He said the reductions in the allocations in headage and on-farm investment were not acceptable and that the Government had failed to provide sufficient funding.
The Irish Creamery Milk Suppliers' Association president, Mr Frank Allen, also criticised the Minister for the reduction in the on-farm investment schemes.
The Minister, Mr Walsh, is to meet the farm organisations today to discuss headage and farm investment elements of the estimates and to brief them on an expected supplementary estimate for his Department due within a week.