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Dáil Éireann debate -
Wednesday, 16 May 2001

Vol. 536 No. 3

Written Answers - Grant Payments.

Ivor Callely

Question:

141 Mr. Callely asked the Minister for Agriculture, Food and Rural Development if he has given consideration to introducing new strident arrangements for headage payments, especially for sheep headage schemes where abuses have been identified in the course of the recent foot and mouth disease outbreak; and if he will make a statement on the matter. [14142/01]

Payments made to sheep farmers in the last 12 months related to entitlements under the 2000 ewe premium and 2000 sheep headage scheme in disadvantaged areas. No payments have been made in respect of the 2001 ewe premium scheme. The sheep headage scheme in disadvantaged areas has been replaced this year with a new area-based compensatory allowance scheme.

The position is that 40,368 sheep producers were paid a total of £77.6 million under the 2000 ewe premium scheme. In addition, 26,209 of those producers in disadvantaged areas were paid a total of £21.7 million under the 2000 sheep headage scheme.

Under the ewe premium scheme, sheep farmers are paid a premium for maintaining a flock of ewes. In order to be paid, producers must hold a quota right for each ewe on which premium is claimed. A farmer may not be paid on more than the allocated quota. The ewes applied on must be in the ownership and possession of the applicant at the time of application and must be maintained at a specified location for a period of 100 days from the closing date for receipt of applications. All applications are subject to administrative and on-farm controls as required under EU regulations. A minimum of 10% of applications are selected for on-farm inspection each year and these cases are selected using risk analysis. Up to 70% of all on-farm inspections are unannounced. However, in mountain commonage areas a maximum of 48 hours notice is given as provided for in EU regulations because of the difficulties in assembling sheep for inspection in these areas. Producers not selected for on-farm inspection are asked each year to confirm the number of sheep on their holding towards the end of the retention period as well as details of any sheep lost or disposed of since application. All of the controls, both administrative and on-the-spot, are carried out within the retention period.

Under EU regulations, penalties are applied where it is found that the number of sheep applied on are not maintained for the retention period. There is a sliding penalty scale but if the difference between the number of ewes declared or the quota held, whichever is lesser, and the number found exceeds 20% of the number found no premium is payable for that year. Applicants who are found to have made a false declaration through serious negligence are excluded from the scheme for that year. Applicants who are found to have made a false declaration intentionally are excluded from the scheme for that year and the following year. The number of producers penalised for irregularities under the 1999 and 2000 ewe premium schemes was 1,599 and 1,804 respectively. Under the sheep headage scheme, 1,222 farmers attracted penalties in 1999 while 1,201 farmers were penalised in 2000.
Given the unacceptable situation highlighted in the detailed assessment of applications in the Cooley area of County Louth, my Department is putting in place a range of additional controls under the 2001 ewe premium scheme. I will be availing of all mechanisms to tackle head-on any unacceptable practices unearthed in Cooley or elsewhere.
Due to the foot and mouth disease problem, it has not been possible to carry out the normal level of on-farm inspections under the scheme this year. Under arrangements agreed with the European Commission, member states affected by the FMD problem must put alternative controls in place. These involve,inter alia, cross checks against databases in the case of bovine schemes and, in the case of the ewe premium scheme, documentary checks which may be conducted on-the-spot or by administrative means. Payments will not issue under the 2001 ewe premium scheme in advance of satisfactory completion of all of the checking arrangements. I am satisfied that the introduction this month of individual sheep tagging will minimise the risk of fraudulent applications in the future. This is essential if the interests of the vast majority of our farmers and those of Irish and European taxpayers are to be fully assured.
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