AGRICULTURE:There was a lukewarm reaction from the farm organisations to the Budget, described by Minister for Agriculture, Mary Coughlan, as demonstrating a strong commitment to the sector in tighter economic circumstances.
The provision of an additional €35 million to help fund environmental and other farm schemes brought most reaction from the farm organisations.
This was described as "positive but still well short of what was needed" by Pádraig Walshe, president of the Irish Farmers' Association(IFA).
Jackie Cahill, president of the Irish Creamery Milk Suppliers Association (ICMSA), said the amount was "totally inadequate", making almost a mockery of the emphasis given by Mr Cowen on the need for investing in environmental improvement.
Irish Cattle and Sheep Farmers Association president, Malcolm Thompson, said that the money was necessary because many sheep and cattle farmers had been badly hit by the premature closure of the Farm Improvement Scheme, which was over-subscribed.
There was an all-round welcome for the Budget's proposals for relief from capital gains tax where joint ownerships of farms were dissolved, but both the IFA and the ICMSA said that there was still no CGT tax relief for farmers consolidating their farms when land had to be bought and sold.
This point was also made by Macra na Feirme's president, Catherine Buckley, who criticised the Budget for failing to introduce direct support for young trained farmers who were restructuring their holdings.
The Minister said that when the carry-over of capital savings from 2007 to next year was taken into account, an additional €91 million would be added to the pre-Budget outlook announced in October.
She said that the Budget had provided €238 million for capital investment in the development of agriculture and food, the highest ever for such an investment.
A total of €150 million was being made available for the Farm Waste Management Scheme and €40 million for marketing and processing grants and €10 million to encourage afforestation and bio-energy crops.
In addition, €370 million was allocated for the Rural Environment Protection Scheme (Reps), €66 million for early retirement, €186 for food safety, animal health and welfare, and €27 million for An Bord Bia.
She also said that one of the tax-relief provisions was to allow the diversification element of the sugar compensation fund to be spread over six years for income tax purposes.
This element of the fund was worth more than €44 million to former beet growers and the relief is estimated to be worth €9.6 million.
Mr Cahill demanded that the Government recognise the difference between farm jeeps and so-called "Donnybrook tractors" when imposing "green tax" on vehicles.
"There is clearly a fundamental and easily recognisable difference between a farm jeep, essential for work, and an SUV driven by an urban dweller, the so called 'Donnybrook tractor'," he said.