98 Mr. D. Carey asked the Minister for Agriculture, Food and Rural Development if his attention has been drawn to the fact that farmers formerly in the severely handicapped areas of County Clare have had their lands re-classified as mountain land areas; and if his attention has further been drawn to the fact that these farmers have suffered substantial loss of income as a result. [22638/01]

99 Mr. D. Carey asked the Minister for Agriculture, Food and Rural Development the criteria used to classify land as mountain land; if his attention has been drawn to the substantial areas of greenland in County Clare that has been classified as mountain; and if he will make a statement on the matter. [22639/01]

I propose to take Questions Nos. 98 and 99 together.

The position is that the new area based compensatory allowance scheme agreed in July 2000 and approved by the European Commission in the context of the CAP rural development plan provides for area related payments as follows: more severely handicapped – lowland – £70 per hectare up to 45 hectares; less severely handicapped – lowland – £60 per hectare up to 45 hectares; and mountain type land, £45 per hectare up to 60 hectares. Where a farmer farms a combination of land categories he will be paid on lowland, more severely handicapped, first, lowland, less severely handicapped, next and the mountain grazings last.