Labour Spokesman for Agriculture and Food Seán Sherlock TD has insisted that the REPS payments to farmers must be protected in the interest of protecting rural Ireland. The Cork East TD said that REPS contributes more to the Irish economy than it costs and warned that the removal of the scheme would have devastating consequences for rural communities.

"The money lost through revenue foregone and the additional social welfare payments required should REPS be closed would have a more significant impact on the National Exchequer than the cost of running the scheme," said Deputy Sherlock.

"According to the farmers groups, farm income for a REPS drystock farmer in 2010 could be reduced by over 35% through the proposed cuts in farm schemes alone. This would obviously have a knock-on effect on the rural communities who depend on farmers to spend their income in local businesses.

"Add that to the environmental benefits to the countryside that are promoted directly through REPS and it is clear that the scheme plays an important role in the economic, environmental and social fabric of rural Ireland. The removal of this scheme in the interest of medium term fiscal planning is short sighted and will have devastating long term implications for communities.

Deputy Sherlock added that the benefits of REPS for the smaller farmer are more pronounced, especially in marginal and mountainous areas.