Dáil Éireann debate -
Wednesday, 9 Dec 2015

Vol. 900 No. 1

Topical Issue Debate

Energy Resources

Deputy David Stanton

I thank the Office of the Ceann Comhairle for allowing me to raise this matter today and the Minister for Communications, Energy and Natural Resources, Deputy Alex White, for being present. I really appreciate it.

This issue concerns the importance of the oil refinery in Whitegate. It is the only oil refinery in Ireland and, as the Minister knows, it is up for sale. I want to recognise the fact that the Minister, his Department and his officials engaged with the owners, management and workers over the past while. Today, all of us have the opportunity to discuss the issue in the Dáil. I am interested in hearing the Minister's reaction to my view that the refinery is of strategic importance to the State.

It supplies 40% of Ireland's transport needs and sells on a wholesale, rather than retail, basis. I have been told it turns around about 200 lorries per day, a figure which has risen to well over 300 at times of peak demand. If it were to close, it would be a major shock to the State, and that is why it is of strategic importance. The fuel, as the Minister knows, is used for transport, industry, agriculture, shipping, food production, heating, hospitals, haulage, public transport and so on. The refinery also produces liquid petroleum gas for a local company, Calor Gas.

All other fuel is imported, mainly from the UK. The refinery acts as a competitor to the importation of fuel. No other country in Europe has allowed all of its refining capacity to be closed, and that should not happen in Ireland. I ask the Minister and the current and future Governments to support the continuation of refining in Whitegate and to continue the positive engagement that has occurred to date with the owners, any future owners, the workforce and local management.

I understand it is the wish and hope of the owners and local management that refining will continue - the refinery is being sold as a going concern. Refining is a high-volume, low-margin business, as the Minister knows. In 2014, the refinery made a loss, but some of that involved write-downs. I understand it is doing very well this year. Of more significance, however, is its importance to the State. We know what is happening in Europe and around the world. We live in volatile times. The risk, fear and concern is that we, as an island nation, would be exposed if the refinery was to shut down. We may be at risk of having a shortage of transport fuel, and that would be a major blow to our economy. That is why the refinery is of strategic importance.

Locally, over 300 workers are employed in the refinery, comprising 157 staff and 130 contractors. About €100 million is spent in the local economy in the Cork region. It is also very important from that point of view. I have been told that 600 ancillary jobs are dependent on the refinery, which again shows its importance. It accounts for about half of the shipping tonnage in Cork Harbour.

It was offered for sale in 2014. The Bantry terminal was sold and the current obligation expires in July 2016. That is why it is now crucial to engage with the process and for the Government and State to be as supportive as possible to ensure the continuation of refining in Cork. We need to do whatever we can to encourage purchasers to come to Cork and continue the refining capacity and operation as much as possible. I am interested in hearing what the Minister has to say about this issue. I contend this is an important and strategic refinery for national and local reasons, and I have brought the matter to the floor of the Dáil today so that the Minister has an opportunity to respond.

Minister for Communications, Energy and Natural Resources (Deputy Alex White)

I welcome the opportunity to address the House on this matter and I thank Deputy Stanton for raising it. Ireland has a single refinery, at Whitegate in Cork, which is owned and operated by Phillips 66, a private company. As the Deputy stated, Phillips 66 supplies approximately 40% of the main products on the market, excluding jet fuel. Under the 2001 sale and purchase agreement, when the State sold the refinery, there was a legal requirement on the refinery owner to continue to operate the refinery for a minimum period of 15 years until July 2016. Commercial decisions beyond July 2016 are a matter for the company, which operates in a fully liberalised market.

In 2012, the Department commissioned a study on the strategic case for oil refining requirements on the island of Ireland. This study examined various scenarios, including the all-island dimension of oil security and the expected impact if the refinery were to close completely or be converted to a terminal. Further to consideration of the report, the Government's primary conclusion on the strategic case for oil refining was that the presence of an operational refinery on the island of Ireland is highly desirable. It provides flexibility, enhancing the options available to the State in the event of an oil supply disruption, by providing an alternative source of product, thus mitigating a complete reliance on imports. The Government also noted the economic importance of the refinery in terms of employment and other economic benefits. The report was published on 30 July 2013.

Refining in Europe has been struggling since the onset of the recession in 2008. There have been several refinery closures, some conversions of refinery sites to terminals and some takeovers, mainly by Asian and Russian owners. Three refineries in the UK have closed down in the period. The European Commission initiated a refining fitness check process in 2013 to examine whether the combination of European policies and legislation was having a negative impact on European companies vis-à-vis the rest of the world. A report from the European Commission on the outcome of the refining fitness check, due to be published shortly, indicates that energy prices, particularly natural gas prices, have been a significant factor in the loss of competitiveness of European refineries vis-à-vis the rest of the world. It indicates that about one fifth of the loss of competitiveness can be attributed to European directives and regulations.

The local management of Phillips 66 informed the Department on 12 October last of the company’s intention to put the refinery and marketing business up for sale. Any sale of the refinery would be a commercial matter between Phillips 66 and a potential purchaser. While this process is under way, Whitegate will continue to operate on a business-as-usual basis. Whitegate's management has repeatedly indicated that it is committed to honouring the 15-year agreement under the 2001 sale and purchase agreement. This commitment is not, and would not be, affected by the planned sale.

Ireland is 98% dependent on oil for transport, and has significant oil dependence in the thermal heating sector. The lack of a refinery would mean that Ireland was entirely dependent on the import of already-refined product. Studies have shown that it is likely that crude oil could be easier to access than finished product in an oil shortage situation. Recently, I had a number of meetings with my Cabinet colleagues to discuss the future of the refinery. In summary, the outcome of these discussions is that there is recognition of the strategic importance of the refinery at Whitegate from an energy security perspective. Security of supply remains a fundamental tenet of our energy policy. I updated the Government on the matter earlier this week.

Deputy David Stanton

I warmly welcome the Minister's statement that the Government recognises the strategic importance of the refinery at Whitegate and supports the continuation of refining in Whitegate, not only for the east Cork area but for the State. Oil expertise is difficult to acquire and replace. There is enormous expertise in refining in Whitegate. The refinery is ahead of itself in respect of biofuel technology, and given the climate change discussions in Paris at present, this is crucial. The refinery is quite anxious to continue this expertise and technology. It is involved in the addition of fatty acid ethyl ester to diesel and biodiesel. It has also been an extraordinarily good neighbour in the area, supporting the local community and really and truly engaging in a most positive way.

I am sure the Minister realises that to try to put in place a refinery anywhere in the State would be very difficult. People would not really want one in their backyard. Over the decades, since it was established in 1959, the refinery has been an extraordinarily good neighbour, and the local management continues this. I am pleased with the Government's position that refining should continue in Ireland and that it is of strategic importance, and the Government will support in whatever way it can the continuation of refining in the State.

Deputy Alex White

I thank the Deputy again for his observation and insights. I remind him I have had occasion to visit the refinery and met management and workers to understand the value of the facility in the greater region where it is located. I have no doubt the Deputy is absolutely right in what he says about the refinery being a good neighbour and an important part of the economy and the fabric of the Port of Cork and the broader region. This is very well understood by the Government, but the fact remains that it is owned by a private company, and commercial decisions are made by the company in respect of the refinery. Having said that, the Government has always stated, and I state again now, the importance we attach to having a refinery here. This is the single refinery in the island of Ireland and it is of strategic importance.

The report I mentioned in my earlier remarks, published in February 2013, was discussed by the Government at the time. A number of options and suggestions on how the Government might assist were examined during that period, and certainly, as a Minister, I would want to do anything reasonably within my powers to ensure we maintain the single refinery we have, always remembering the fact that it is a commercial operation. The period during which it is required contractually to continue refining expires in July 2016. We certainly want to keep this matter closely under review and maintain good contact with local and US management, whom I have met, staff representatives, workers and trade unions, who have taken a close interest and a very responsible approach to the future of the refinery.

Sitting suspended at 2.50 p.m. and resumed at 3 p.m.

Community Development Projects

Deputy Joe Costello

I apologise for being late, which was the result of a misunderstanding. I am pleased to have the opportunity to discuss the important and exciting innovation that is the men's sheds movement, which provides a way of engaging with men within their communities. It is an idea that came from Australia and has spread like wildfire through many parts of this country, with well in excess of 200 such groups in operation at this time. We all know how notoriously difficult it can be to get men to engage in any type of activity after retirement. Irish men were never great at taking up courses or going to the bingo. Many find themselves at a loose end after retiring but it is difficult to get men who have reached a certain age to bond together in any sort of community activity. However, large numbers of men have taken very quickly and enthusiastically to the men's sheds movement. In my constituency, several groups are up and running and doing great work, from East Wall to the city centre to Cabra.

An issue that comes up in every discussion of the men's sheds movement is the question of resources. Participants do all types of activities, from having a cup of tea together to working on a community garden, doing carpentry or electrical work, doing maintenance at senior citizens' complexes and so on. It is about participating on a communal basis in activities in which they would not otherwise have engaged. This phenomenon is now embedded in the community and is proving a great success. It is a good thing in all sorts of ways, particularly in respect of men's health. Serious consideration should now be given to the provision of specific supports to ensure the movement can thrive and expand throughout the rest of the country.

Minister of State at the Department of the Environment, Community and Local Government (Deputy Ann Phelan)

I am pleased to have an opportunity to address the Dáil regarding funding for men's sheds. I agree with the Deputy's comments about the great work being done by these groups. I have visited many of them and the benefits for participants are clear to see. My Department provides support to the Irish Men's Sheds Association, IMSA, under the funding scheme to support national organisations in the community and voluntary sector. During 2013, in advance of the commencement of the 2014 scheme, my Department carried out a review which found the scheme had fulfilled its main objective of providing multi-annual funding to national organisations towards core costs associated with the provision of services. The review recommended that organisations be required to demonstrate clearly the added value of the work proposed. The effective use of core funding by recipient organisations also requires that robust governance and cost control procedures be in place within those organisations.

The new scheme was advertised for applications early last year. Some 157 applications were received by Pobal and 55 were approved for funding for the two-year period from 1 July 2014 to 30 June 2016. The award process included considerations such as social and economic benefits, consistency with current policies and long-term vision. The approach brought together the relevant information within each application, including experience, evidential analysis, consideration of impacts and comparative analysis, with the final decision based on a fair and transparent assessment of the applications.

IMSA applied successfully for funding and was allocated €175,950 over the 24-month period of the scheme. The aim of the funding is to enable IMSA, together with community partners, to increase the network of men's sheds in Ireland to more than 400, involving the participation of more than 20,000 disadvantaged men. The funding is contributing to the employment of a CEO and a resource worker as well as associated overheads. My Department is providing funding under the scheme of in excess of €8 million over the two-year period. This represents an increase in funding of more than 10% per annum compared with the previous scheme.

My Department has also funded men's shed projects under the rural development fund and the Leader element of the rural development programme. Funding has been provided to renovate buildings to house those types of initiatives and for tools and equipment. Since the downturn in the construction industry, large numbers of men have found themselves at a loose end while looking for new employment. In some rural areas, this has led to a feeling of isolation. Men's shed projects have turned this negative into a positive by supporting the development of initiatives where new friendships have been fostered and communities have benefited from the products and services provided by the clubs.

I understand there are almost 220 men's sheds in Ireland at this time, comprising more than 7,000 members. Several wonderful projects have grown from these initiatives such as the restoration of old farm machinery and the production of fantastic wooden pieces. They have helped men in a number of communities to come together to work on initiatives in which they would not have participated if not for the men's shed.

Deputy Joe Costello

I thank the Minister of State for her informative reply. I am pleased to hear there is a national co-ordinating body for men's sheds projects which is funded under the scheme to support national organisations in the community and voluntary sector. However, I wonder how effective it has been in responding to new organisations that are seeking to establish themselves. It certainly seems to me there is no great awareness that such an organisation exists and is in a position to distribute funds. There may be a difficulty in making contact with men who would be interested in participating unless there is a degree of awareness abroad that funding is available and how to access it.

It is not just disadvantaged men who are participating in men's sheds but also men who are not disadvantaged in any sense but have retired from all types of employment. It is a phenomenon that appeals to all categories of income and background. Will consideration be given to setting up a specific fund earmarked for the resourcing of the 220 existing men's shed groups and the development of new groups? This is the only activity I am aware of that has been successful in engaging men to this sort of level.

It is contributing enormously to men's health, as well as everything else. From that point of view, it is important that we give it the recognition it deserves. That can best be done by giving it a special stream of funding that would be available to resource what is there, to look at areas in which it might continue to carry out good work and then to look at its expansion throughout the country.

Deputy Ann Phelan

Funding under the scheme to support national organisations, SSNO, is provided to national organisations such as the Irish Men's Shed Association for core funding. My Department does not provide funding under the SSNO for local and regional branches of national organisations. The organisations funded under the SSNO reflect significant diversity in theme and in the target groups they support, including health and disability, community development, education, equality, integration, unemployment, young people, drugs, older people and child welfare. They are, therefore, all in and around the space to which the Deputy refers. In terms of future funding for these projects, the Leader element of the Rural Development Programme 2014-2020 will provide €250 million in resources to support the sustainable development of rural communities across the country. This funding will be delivered using a community-led local development approach based on local development strategies. I assure Deputy Costello that the funding for this type of activity will be eligible under that programme, once it is included in the Leader strategy for the local area. As Deputy Costello knows, our President is patron of this association. I take on board the Deputy's desire to raise awareness about this, because the organisation and association does a very significant amount for men and it has been difficult to engage men up to now. I understand what the Deputy is saying and I will take it back to my officials to see whether more can be done.

Northern Ireland Issues

Deputy Brendan Smith

I appreciate the Ceann Comhairle selecting this important Topical Issue matter and I very much appreciate that the Minister, Deputy Flanagan, is here to deal with this question himself. The Fianna Fáil Party believes the rights of survivors and victims of the Troubles must stay on the agenda and must be kept to the fore. The newly-agreed Fresh Start agreement comes against the backdrop of protracted uncertainty and instability in the Northern Ireland Executive. While the Fianna Fáil Party has welcomed the agreement, there remains a series of issues that must be addressed to copperfasten progress and safeguard peace on this island.

This new agreement is welcome because it removes the immediate threat of long-term collapse of democratic institutions established as the result of the overwhelming support of the people of this island. It provides a fresh start only in terms of the implementation of the previous deal. Unfortunately, it does not provide a fresh start or anything close to it for many people in Northern Ireland, particularly survivors and victims of the Troubles. The new, progressive measures to deal with the legacies of the past outlined in the previous Stormont House Agreement, which I welcomed at the time, are not included in the Fresh Start agreement and, therefore, those who are seeking answers and justice have once again been sidelined with no mechanism contained in the Fresh Start agreement to address their issues.

Unfortunately, the British Government and some political groupings in particular have stood in the way of dealing with the past in order to protect their own interests. Each continues to focus on the victims of others and does the absolute minimum on anything involving their side. We share the outrage of victims' groups about how this issue has been brushed aside. There is effectively nothing in the agreement for survivors and victims to deal with the legacy of the past. Where is the fresh start for those people?

The WAVE Trauma Centre, the largest cross-community victims and survivors support group in Northern Ireland, has said those it works with feel "abandoned and betrayed" by the agreement. The CEO of the centre, Sandra Peake, has highlighted the failure of the Fresh Start agreement to address the needs of victims. In her words:

The two Governments and political parties have said that dealing with the suffering of victims and survivors is central to Northern Ireland moving forward. They can no longer say that with any credibility. The reality is that they have abandoned and betrayed victims and survivors who have repeatedly been promised that there would be an inclusive and comprehensive way found to deal with the legacy of the past.

These are strong words on behalf of the WAVE Trauma Centre, but they demonstrate the level of anger, frustration and disappointment felt by survivors' and victims’ families. In the debate here on 25 November, the Minister expressed his disappointment with not having in place adequate measures to deal with these issues. While we acknowledge the efforts made to secure this Fresh Start agreement, we must continue to address issues that were not resolved in the agreement and to fight for the rights of survivors and victims of the Troubles.

The Minister for Foreign Affairs and Trade, Deputy Flanagan, stated in a reply to a parliamentary question I submitted that "[g]ood progress was made on agreeing many of the details necessary for the establishment of the new institutional framework for dealing with the legacy of the past and that Agreement is very close on many of the details necessary for the establishment of these new institutions". Since the signing of the Fresh Start agreement, what has the Government done to address the concerns of survivors and victims and to move forward on institutions that will deal with the legacies of the past? What, if any, progress has been made regarding the historical investigations unit, placing the implementation and reconciliation group on a statutory footing and settling on its purpose and functions, and in deciding on the detail and operation of the oral history archive? The last day the Minister indicated to us during his contributions to the debate on Northern Ireland that he would be meeting with survivors' groups in the aftermath of the signing of the Fresh Start agreement. He might give us an update in regard to that dialogue on the progress we can hope to see made at the earliest possible date on what are very important issues.

Minister for Foreign Affairs and Trade (Deputy Charles Flanagan)

I thank Deputy Smith for raising this most important issue this evening. It is important to start with the positives and what was achieved by the Fresh Start agreement. It has placed the Government in Northern Ireland on a sound budgetary footing, which is so important for economic stability and development, and new financial supports that will help to unlock the full potential of the all-island economy were also agreed. A plan was agreed to bring to an end the insidious influence of paramilitarism and measures to further enhance North-South co-operation on tackling associated criminality and organised crime. Crucially, the Fresh Start agreement has assured the political stability of the devolved power-sharing institutions so that they can deliver for the people of Northern Ireland.

Notwithstanding these clear gains, the Government regrets that the Fresh Start agreement did not include agreement on the implementation of provisions of the Stormont House Agreement dealing with the legacy of the past. We share the deep disappointment of the victims and survivors of the Troubles and their families in this regard. It is worth stressing again that it was not the Irish Government that pressed for an agreement that completely left aside the legacy of the past. However, when it became clear that the choice was between having an agreement which uncoupled the past and having no agreement at all, the Government most reluctantly agreed to have a less comprehensive deal that would at least ensure that the devolved institutions would be protected and placed on a stable and sustainable footing.

What is important now is that we find a way forward that banks the good progress already achieved during the talks on legacy issues and secures a solution to outstanding matters, including the key issue of striking the right balance between the onward disclosure needs of families and the national security requirements being sought by the British Government. To this end, I met Northern Ireland's victims commissioner on 26 November to discuss the concerns of victims and possible ways to take the issue forward in a way that satisfies these concerns. I will also meet the Northern Ireland Minister for Justice, David Ford, this Friday and the Secretary of State for Northern Ireland, Theresa Villiers, later this month in order to take stock of the implementation of the Fresh Start agreement.

In that agreement, both Governments acknowledged the "need to resolve the outstanding issues concerning the legacy of the past and to reflect on the options for a process to enable this". While I am determined to re-engage on this work in the very near future, it is also important that the selected process of engagement offers a credible prospect of success; the victims and survivors simply cannot be disappointed again. In so far as the issue of onward disclosure and national security vetoes remain a zero-sum stumbling block to wider progress, there also needs to be a measure of flexibility, compromise and common sense so that an acceptable accommodation can be found.

When discussing the past in Northern Ireland and its legacy of loss and hurt, the iconic tragedies, such as Ballymurphy and Kingsmill, the murder of Pat Finucane and the Dublin-Monaghan bombings, are never far from my thoughts. In regard to the latter, I share Deputy Smith's disappointment that the British Government has not yet positively responded to the relatively modest requirements of the all-party motion approved by this House. It is an issue that I have raised on a number of occasions with the Secretary of State for Northern Ireland, and I will continue to do so while I have the honour of serving in this position.

I assure the Deputy that the Government remains committed to finding a way forward so that the setting up of the new institutional framework on the past can take place on an agreed basis, as envisaged in the Stormont House Agreement. We are determined to achieve the establishment of these institutions so that we can in a fundamental way deal with the past, foster reconciliation and build a society for future generations that is free from hurt and suspicion. This is essential if the full potential of the Good Friday Agreement is to be realised.

Deputy Brendan Smith

I thank the Minister for his detailed response.

The Minister has had a number of meetings, and earlier today a number of Members of the Oireachtas from all political parties met with the group Justice for the Forgotten to discuss the Dublin-Monaghan bombings and other atrocities. If the Minister and his Department can continue to engage with the different representative groups in the aftermath of the Fresh Start agreement, it is important to reassure the groups that these issues will continue to be given the attention they need and that there can be no moving away from this issue until progress is achieved.

Elections will be held, both North and South, in 2016, and we all are fully aware of the additional difficulties in making progress on important and sensitive issues leading up to election time. Both Governments and the five Northern Ireland Executive parties must give these issues the highest priority this month and in January.

For Northern Ireland to truly move forward, we need to put in place mechanisms that deal with the legacies of the past. Victims and survivors, be they of atrocities committed North or South, have a basic entitlement to the truth. The most evil of crimes and large-scale murder were witnessed on this island, perpetrated by paramilitary organisations, and some British state forces were involved in collusion in the most heinous of crimes.

For our society, and particularly for the families concerned, the truth must be forthcoming. The necessary mechanisms have to be put in place to get the facts. Thorough and unimpeded investigations are needed, and no Government or State agencies or political groupings can be allowed to continue to block the truth process. The British Government's invoking what is in reality a veto is no longer acceptable, and I am glad the Minister referred to the unanimous motions of this House, passed in 2008 and 2011, on the need to give access to the papers and files relating to the horrific murder of so many in May 1974 in both Dublin and Monaghan. This is an issue, along with many others, that needs to be on the agenda in every meeting with the British Government and members of that Government.

Deputy Charles Flanagan

I acknowledge the commentary of Deputy Smith and, indeed, acknowledge his support and that of his party, both in recent times and prior to that, in terms of our approach here to matters pertaining to Northern Ireland.

The Government has a long track record of defending and promoting the rights of victims and survivors. The record clearly shows that successive Irish Governments, including those of Deputy Smith's party, have rigorously pursued justice and truth for those adversely affected by the Troubles.

This commitment to victims and survivors will remain a key priority for this Government and for myself. Whether it is Ballymurphy or Kingsmill, the Dublin-Monaghan bombings or the late Pat Finucane, the measure of one's commitment is not the loudness but the resilience and persistence. This commitment was demonstrated again through the Government's work with the British Government and the political parties in Northern Ireland in agreeing the Stormont House Agreement of December last year. This was a watershed moment in terms of dealing in a fundamental way with the legacy of the past. I met victims' representatives in recent times and I will continue to do so, and make myself available, as will my Government colleagues.

It is now important to continue our efforts to implement in full the new institutional framework on the past, as agreed under the Stormont House Agreement, which builds on the substantial progress achieved on legacy issues at the recent talks and keeps the needs of the victims and their survivors at the centre of everything these new institutions will do. The opportunity to set up the institutions must not be lost, and I intend having further meetings between now and the Christmas season.

Farm Partnerships

Deputy Martin Ferris

We have all been supportive of the partnership arrangement for younger and older farmers as a mechanism for encouraging young people to stay on the land and build up their own entitlements with the expertise that many of them have gleaned through Pallaskenry and other colleges where young farmers go for farming education. The problem, as I understand it, is that although there have been roughly 800 applications for the scheme, apparently only 300 have been processed. If these applications are not processed, it will run into next year, and the young farmers who have not had their applications processed will lose the top-up on their entitlements. It would also affect their green low-carbon agri-environment scheme, GLAS, payments and the higher grants under the targeted agricultural modernisation scheme, TAMS, which are essential for young farmers, because availing of the TAMS support and grant system amounts to putting good capital investment into farm holdings.

Those who have not been processed will not access GLAS within the current deadline of 14 December. Furthermore, partnerships that have been created are missing vital information such as commonages from their applications, which means that they cannot enter GLAS and there is no sign they will have their information updated. The loss to the young farmer will be quite substantial.

I hope the delay in processing these partnerships will be dealt with, because it is preventing young farmers from applying for those entitlements. I understand the computer system will not allow GLAS planners to submit applications for unprocessed partnerships. I would appreciate it if the Minister of State could give me a positive response to my queries.

Minister of State at the Department of Agriculture, Food and the Marine (Deputy Tom Hayes)

I thank the Deputy for giving me the opportunity to answer his queries about the difficulties he has outlined. I welcome the opportunity to address the Dáil today on the matter of support for farmers and, in particular, possible issues relating to partnerships.

The range of schemes available to farmers, such as the basic payment scheme, BPS, under Pillar 1 and the areas of natural constraints, ANC, scheme and GLAS under the new Rural Development Programme, RDP, 2014-2020, are vital supports for farmers, as the Deputy correctly points out. In rolling out the new BPS and RDP schemes, I have been anxious to ensure that cognisance is taken of the role that partnerships play in addressing a range of economic and social issues in today's agrifood sector.

The main schemes that fall for payment to farmers at this time of the year are the basic payment scheme, the greening payment and the ANC scheme. The basic payment scheme replaces the old single payment scheme and includes for the first time this year a new greening payment. At present, my Department is processing applications from some 122,000 farmers who currently have entitlements under the scheme.

The ANC scheme replaces the old disadvantaged areas and less favoured areas schemes. The ANC scheme seeks to compensate farmers in certain designated areas for the challenges they face due to factors such as remoteness, difficult land type and poor quality. These farmers tend to have lower farm productivity and a higher unit cost of production than farmers in other areas.

Under EU regulations, all applications under the basic payment and ANC schemes must be subject to robust administrative checks prior to payment. The Department's system for processing payments must meet demanding EU and national audit requirements. Only valid applications under the basic payment and ANC schemes that fully comply with the requirements of the EU legislation are paid. Consequently, all applications under the schemes are subject to administrative checks. The main element of these administrative checks is an area assessment. This is achieved by using the detailed database of individual land parcels.

Regarding the basic payment scheme and greening payment, advance payments began issuing on 16 October 2015. This is the earliest that payments can commence for these schemes under the governing EU regulations. The level of the advance payment was set at 70% for 2015 rather than the normal 50%, a concession won by the Minister, Deputy Coveney. This increase was one of the key issues I raised with Commissioner Hogan in our discussions earlier this year. Ireland is among the earliest to pay the BPS in the European Union and, to date, of the approximately 122,000 eligible applicants, 117,380 farmers have received payments totalling €1.025 billion. Given these figures, my Department has been very effective in issuing payments early this year. The figures I have outlined show that over 96% of applicants under BPS and some 83% of applicants under the ANC scheme have received payment. Ireland is among the first member states to make payments.

More than 26,000 farmers were accepted into GLAS under the first tranche, and those whose contracts start from 1 October 2015 will receive a payment before the end of the year. Although there are a small number of partnerships where the entitlement position is not yet finalised, it does not affect a farmer applying to GLAS. Most of these farmers are multiple partnerships where two or more farmers have gone into partnership during or prior to the 2013 scheme year. These farmers submitted one single payment scheme application in 2013 which included all land farmed by all partners in that year.

During the course of the ongoing processing of the basic payment scheme and GLAS applications, we have recently been made aware of a small number of partnerships that have experienced some minor delay in applying for GLAS. This is as a result of a technical issue that occurred at the basic payment scheme application stage and we are in the process of resolving these cases. It is not expected that the issue will result in any ongoing delays or blockages for those partnerships wishing to enter GLAS. They will not hold it up.

On Monday, a separate technical issue regarding the mapping feature in the GLAS online system when processing GLAS applications came to light. It is being addressed as we speak and will be fixed in the next few hours. Technical issues such as this are a feature of any online system and normally can be fixed very quickly. I have received assurance from officials that these issues will be fixed before the day is out.

Deputy Martin Ferris

As the Minister of State said, a small number have been affected. The number I have is 800 applications. I assume they are 2014 applications as distinct from 2013. Taking away 300 leaves 500. This could have changed in the days since I received the information. It is encouraging that it will be resolved and that the technical issue regarding the mapping feature in GLAS will also be resolved today. If it is not resolved by the end of the year but takes some time into next year to resolve it, I hope no penalties or loss of entitlements will be imposed on applicants for this year. It is essential that they have the understanding and certainty that if it is not resolved between now and 31 December but runs over, it will not affect the top-up to which the applicants are entitled.

The other issue with the delay in processing is that it prevents young farmers from applying for GLAS, given that the computer system will not allow GLAS farmers to submit applications for unprocessed partnerships. Unprocessed partnerships that have not been processed cannot be submitted through the computer system. Maybe it is part of the technical hitch. If so, I welcome that it will be examined.

Deputy Tom Hayes

Some 95% of payments have been made and departmental officials are working very hard to try to deal with them. Under no circumstances will anybody receive a levy. People will not be put at an disadvantage because of something that is happening in the Department. The technical issues regarding the IT system just cropped up. The Deputy's final point is being addressed as we speak.