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Dáil Éireann debate -
Thursday, 8 May 2003

Vol. 566 No. 2

Written Answers. - Grant Payments.

Denis Naughten

Question:

98 Mr. Naughten asked the Minister for Agriculture and Food in view of his decision to cut the special beef premium and the fact that 80% of premia payments have been paid, and that payments rather than the numbers of animals are being cut by the Department, if he will then ensure that all payments will be made in full under the extensification scheme. [12493/03]

My Department is in contact with the European Commission in regard to the cutback to be applied to the special beef premium arising from the overshoot of the national ceiling on payments. No decision has yet been made on how the cutback will be applied, that is, whether the rate of premium will be cut or the number of animals per farmer will be reduced.

Irrespective of which method is used, the same rate of cutback as is applied to the special beef premium payments will also have to be applied to any extensification premium payments due on those animals to respect EU regulations. Accordingly, it makes no difference from an extensification premium point of view whether the rate of special beef premium is cut or the number of animals is reduced as a corresponding decrease will apply to extensification premium payments

Denis Naughten

Question:

99 Mr. Naughten asked the Minister for Agriculture and Food if he will review his decision to cut the special beef premium and extensification scheme by 20%; if he will consider spreading the overshoot over 2002 and 2003; and the proposals submitted to the Agriculture Commissioner. [12494/03]

Denis Naughten

Question:

100 Mr. Naughten asked the Minister for Agriculture and Food if he is satisfied that the overshoot in 2002 for the special beef premium was due to the leaking of the mid-term review document; if he believes that it is acceptable that farmers should be penalised for this leak; and if he will make a statement on the matter. [12495/03]

I propose to take Questions Nos. 99 and 100 together.

The reduction in certain special beef premium and extensification premium payments is the direct result of an overshoot in the number of applications by farmers and the automatic application of EU regulations governing such an eventuality. In Ireland, following an agreement with the farming organisations to increase the number of animals on which premiums could be paid from 90 to 180 in each age category, I also decided, in order to achieve equitable treatment of the smaller farmer, to exempt those applicants in respect of 50 animals or less from any liability in the event of an excess over the national quota.
I am satisfied that the scale of the overshoot is the result of a surge in applications submitted to my Department in late December 2002. These applications followed the early publication of a confidential draft legal text of the Commission proposals for the mid-term review that included 2002 as one of three reference years for the purposes of establishing entitlements to the single direct payment. I have made a very strong case to the European Commission aimed at minimising the impact on farmers in respect of 2002 and am awaiting a response to my proposals.
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