Government, IFA agree on draft deal for State's road building plan

The Government has concluded a draft agreement with leaders of the Irish Farmers' Association, on a solution to the five-month dispute which has held up the State's National Development Plan road building programme.

The agreement, which has yet to be ratified by the members of the IFA and the National Roads Authority, is likely to end the stand-off between farmers and Government, which has been costing an estimated £1 million per week, since last May.

The deal was concluded between the Minister for the Environment, Mr Dempsey, and the president of the IFA, Mr Tom Parlon, yesterday. It provides for significantly increased payments to land owners, including a co-operation payment of at least £3,900 (€5,000) per acre.

Changes will also be made to speed up the process of acquisition and payment, a liaison officer is to be appointed and a code of practice for procedures to be followed by the National Roads Authority be put in place.

Changes to the way land is to be valued are also to be made, effectively pitching the price paid at the cost of purchasing a similar parcel of land in the immediate vicinity.

A difficulty regarding the taxation of compensation payment for farmers was resolved to the farmers' satisfaction by an assertion by the Department of Finance that it would not be subject to tax if reinvested in any business.

In return, the IFA has conceded the State's need to have a system where it can use compulsory mechanism to acquire property. The IFA had originally maintained the compulsory purchase system was out-dated and should be scrapped.

Since last May, when the farmers' action began in earnest, some 30 sections of the five proposed motorways from Dublin have been held up, as farmers refused access to their lands to surveyors and planning officials. Under the proposed agreement, farmers will now receive the €5,000 payment if they grant immediate access to their lands. Ratification by the IFA and the National Roads Authority, is expected to be a formality.

A more serious danger to the draft agreement is the lack of co-operation of the Irish Creamery and Milk Suppliers' Association, which said yesterday that there "were still issues to settle" before it can recommend the deal to its members.

The ICMSA spokesman, Mr Pat O'Rourke, said one issue was the pitching of the special €5,000 per acre payment above market value.

"The NRA was already making payments above market value, so the €5,000 would not be €5,000 above the NRA's best offer, he said. Mr O'Rourke also said his members wanted a compensation payment for disruption and dust damage caused to grass and crops during construction of the road building programme.

Answering questions at the Oireachtas and Local Government Committee meeting yesterday, Mr Dempsey said the cost of the deal would be about £80 million (€101 million).

The Minister rejected assertions by the Labour Party Spokesman on the Environment, Mr Eamon Gilmore, that the issue had set a precedent, in that any landowner "will now simply hold out until they get a more favourable deal".