Spending curbs loom - Prospects for FIS now look bleak

By Pat O'Toole

Flooding in Portarlington this week, when the River Barrow burst its banks. In the first week of July, the national average rainfall was up 420% on last year, with over three inches of rain in many regions.

Agriculture Minister Brendan Smith will today (Thursday) present the Dail with his plan to curtail spending at his Department. Following Taoiseach Brian Cowen's announcement of €440m to be slashed from current public spending, Smith must cut 3% from the payroll. The Department's decentralisation programme will halt, except where work is already advanced.

The Government have not yet signalled any programme cuts, but, naturally, there will be concern until there is clarification.

Over €8bn was committed to agriculture in the National Development Plan and it is almost certain that flagship programmes, such as the Suckler Welfare Scheme (SWS) and REPS, will not be affected.

The Minister's hands are tied somewhat due to the huge financial commitment to the Farm Waste Management scheme (FWM), which cannot be reneged upon. But the prospects of the Farm Improvement Scheme re-opening look bleak in the current climate. "Anything that is closed, will stay closed,'' said a Department source.

However, farm organisations are adamant that those farmers who submitted their applications before the scheme's 'temporary closure' on 21 October must be looked after.

While any farmer who finishes work under the FWMS is certain to get their money, there is surely now no chance of an extension on the 31 December deadline. This will leave thousands scrambling to finish work before the shutters come down.

The 3% cut in payroll costs is likely to be achieved by a recruitment embargo, as well as an across the board tighter rein on overtime, expenses and administration. State agencies such as Teagasc and Bord Bia will also be affected.

The €28m promised to the sheep sector before the last election has not been delivered on, despite repeated calls for its roll-out. It may now be in doubt.

Fine Gael agriculture spokesman Michael Creed claimed that Minister Coughlan's 'failure to manage the Department's finances' was coming home to haunt Minister Smith. He claimed €150 million of the Department's budget was handed back unspent last year and much celebrated investment schemes were now dead in the water.