asked the Minister for Agriculture the amount of money small farmers will lose in headage grants in the severely handicapped areas in each of the counties where the scheme applies; and the amount of EEC money lost to Ireland as a result of the lowering of permitted off-farm earnings.

11.

asked the Minister for Agriculture the number of applicants affected by the budgetary measure to reduce the qualifying income limits for persons in off-farm employment applying for cattle headage payments under the severely handicapped areas scheme.

It is proposed to take Questions Nos. 10 and 11 together.

The lowering of the off-farm income limit will reduce total headage grants to all farmers under the disadvantaged areas schemes by an estimated £1 million in 1983 and £1.3 million in a full year. Half of these amounts would have been recovered from FEOGA.

About 2,500 applicants for cattle headage in the severely handicapped areas will be affected. It is not possible to give reliable figures on a county basis.

Would the Minister agree that cattle headage payments are the most effective way of increasing the national herd, which so badly needs to be increased? For the saving of a small amount of money does the Minister think this was a wise decision?

Irrespective of what I think, the payment was given on the basis of a supplement for farmers in disadvantaged areas. My personal view is that it is a spark to production in the sense that people generally regard this payment as being connected with livestock improvement and additional cattle. Despite all the payments over the years we do not seem to have many more cattle on our farms but there are many other reasons for that as well.

Is the Minister aware it is generally accepted that over the years we have been paying the minimum amount for cattle headage and that we did not approach it in a positive way at any time? Does the Minister not also agree that by bringing this down from £5,400 to £3,500 or £67 a week, less than any man and his wife would be receiving on supplementary benefit, they are removing any incentive for people to increase their herds or improve conditions on their farms?

Our problems were of a budgetary nature. We wanted to ensure that the people who had no off-farm income on the small farms and the people with very low levels of income would be looked after.

The Minister mentioned the herd and stock book in Northern Ireland. This would simplify inspections and would help to curb the incidence of disease. Would the Minister consider introducing this and measures such as this so that the money would be going to the farmers rather than being tied up in administration and inspection?

Going on the pilot scheme carried out last year with the 14,000 herd owners of limited stock it might be difficult enough in this country but we will keep a very open mind on it. I think the Department have done great work in lowering the administrative costs on the huge amount of inspections. I will take another look at the Northern Ireland situation and then we will compare the two systems.

At present if a man's earnings from outside agriculture exceed the guideline laid down by £10 or £20 he may lose up to hundreds of pounds of headage payments. Would the Minister consider the possibility of having a phasing out rather than a complete cut-off point at a particular figure? If a man were, say, £100 over the limit, would the Minister provide that his headage payments would be reduced by £100 rather than not receiving them all?

For administrative reasons that system has not been adopted over the years. I could see some merit in it except that with so many schemes and so many reference numbers and payment dates it could get a bit messy. I will take a look at it.