The overall level of penalties under the special beef premium scheme is relatively small representing less than 2% in recent years of all applications received which amounted to 187,000 in 1999. Penalties can range from relatively minor reduction penalties which account for some 95% of all penalties under the scheme to more serious situations which result in one year or two year exclusions from the scheme.
At the Agriculture Council in Luxembourg earlier this week, I welcomed the positive reaction from the commission to the lobbying from Ireland to reduce the bureaucratic burden of the CAP direct payment rules. The commission announced its intention to review the imposition of penalties for minor errors in premium applications; simplify applications for small farmers; allow more flexibility in determining set aside and develop a monitoring system to minimise the requirements for farm inspections.
I believe that the approach signalled by the commission on penalties, together with last week's Government decision on the new appeals office, represent major steps in meeting the concerns of farmers regarding proportionality of penalties under the various schemes.