(Limerick West), Mr. Kitt and Mr. H. Byrne asked the Minister for Agriculture if any EEC grants will be lost to the agricultural industry next year because of the recent Government cutbacks.

The recently announced modifications to certain schemes under the EEC structural directives to effect savings in national expenditure of £12.3 million on these schemes will result in a reduction of some £3.2 million in reimbursement from the EEC next year.

(Limerick West): On what basis did the Minister arrive at the figure of £3.2 million? My information suggests it should be far in excess of that figure. What period does it relate to?

The question asks what the loss in grants will be next year. The breakdown of £3.2 million is as follows: we will lose £2 million reimbursement under the farm modernisation scheme and £.7 million under the following schemes — grants for farm accounts, guidance premiums, grants for mobile equipment and aids for joint fodder production. We will lose £.5 million as a result of the cut in allowable farm income.

(Limerick West): The Minister has not answered my question. What period is the Minister talking about?

1984.

(Limerick West): The Minister spoke previously about restoring grants this year. Is he now saying that these grants will not be restored? Can the Minister say exactly what period he was talking about? Is it true that the grants will be restored later this year?

I do not see any difficulty——

(Limerick West): I do.

The Deputy asked what we would lose next year in reimbursements. We get reimbursements for 1984 for what we lost in 1983. As I have said, we will lose £3.2 million in 1984 because we have withdrawn certain sections of the farm modernisation scheme and other schemes.

(Limerick West): For what period of time?

The full year.

(Limerick West): In other words the grants will not be restored for 1984?

I said we would restore portion of them.

In view of the fact that we will lose £2 million under the farm modernisation scheme in EEC grants will the Minister review the scheme without suspending it? Could the scheme be restored now so that we will not lose £2 million next year?

I made a categorical statement on that in the House already. The situation has not changed. I intend to introduce a modified addition of the farm modernisation scheme later this year.

In the meantime we are losing £2 million.

We are saving £12.3 million.

Would the Minister not agree that he has left farmers in limbo? Does he not agree that he should give a commitment to people who want to carry out additional work and let them know that the scheme will be restored at the end of this year?

When the scheme is reintroduced it will be primarily for the housing of livestock.

When does the Minister propose to re-introduce the farm modernisation scheme?

I have already said later this year. I hope the latter part of the autumn.

Can the Minister be more specific?

I cannot say when.

Earlier on the Minister said it would be early autumn and now it is late autumn.

I said I hoped to do it in the autumn.

Has the Minister received any communication from the EEC expressing displeasure over the abrupt termination of this scheme?

None. Any rumours to that effect are ill-founded.