Vol. 543 No. 4
49 Mr. Connaughton asked the Minister for Agriculture, Food and Rural Development the reason a higher rate of area based payment has not been made to a person (details supplied) in County Galway; the reason the financial penalty in this case has been so large; and if he will make a statement on the matter. [27262/01]
The person named was paid £2,937.84 on 26 October 2001 under the 2001 area-based compensatory allowance scheme in respect of 41.97 hectares of more severely handicapped land – lowland. His average headage payment in the years 1998, 1999 and 2000 was £3,784, and under a compensation package agreed with the European Commission, farmers experiencing losses under the 2001 area-based scheme were to be paid an additional sum equal to 90% of the difference between the average headage payment and the amount payable under the area-based scheme. Because of the reduction in area of the holding of the person named from 52.09 hectares in 2000 to 41.97 in 2001, the compensation element of the area-based scheme was not included in the basic payment. In such cases the intention is to make a compensatory payment which takes into account the fact that the overall forage area has decreased in 2001. The person named is entitled to be paid compensation of £570.60, that is, 90% of the difference between the average headage payment and the area-based payment of £3,150 which would otherwise have been payable if no reduction in land occurred. Payment of the amount due will issue as soon as possible.
