Seanad Éireann debate -
Friday, 22 Mar 2002

Vol. 169 No. 14

Adjournment Matter. - Grant Payments.

Mrs. Taylor-Quinn

I thank the Chair for affording me the opportunity to raise the issue of delays in payments to farmers for various schemes and the difficulties arising as a result. I understand many payments have been delayed as a result of complications in the computer systems used in the Department of Agriculture, Food and Rural Development. It appears that the system used in one section of the Department is incompatible with that used in another, meaning that many farmers who should have received payments by November 2001, at the latest, are still waiting. There are reports that some of those affected received payments this week.

It appears that the computer systems in the Department leave much to be desired, at a time when the Minister for Public Enterprise is telling us what a wonderful country Ireland is as regards information technology. The ineffectiveness of technological systems in Departments is resulting in serious problems for many. The computer system which maps the acreage of each farm seems to be separate from that containing statistics for each farm's livestock, tag and herd numbers. The systems do not link with each other. The Minister for Social, Community and Family Affairs has referred to his Department's computer network which ensures statistics relating to birth, death or marriage certificates can be accessed together at the press of a button. It appears that the Department of Agriculture, Food and Rural Development is ten years behind as its computer system is incapable of providing an effective system for its customers.

Many farmers in my constituency of Clare have suffered hardship in recent months because they have not received their payments, as I am sure the Minister for Arts, Heritage, Gaeltacht and the Islands, Deputy de Valera, can testify. It is prob able that she has received representations in her constituency office from farmers with small and medium farms, whose margins have become tighter in recent years and for whose survival premium payments are quite important. I ask her to do all she can to ensure this error is rectified as soon as possible, as it is unacceptable that payments which should have been made in October or November 2001 should remain unpaid in March 2002. The Department used to have a standard practice of making all payments to farmers before Christmas, but it seems to have gone by the board.

I am sorry the Minister for Agriculture, Food and Rural Development, Deputy Walsh, is not present to comment on the decline in the numbers making certain applications, which shows that his record leaves much to be desired. The number of applications for suckler cow premium decreased by over 10,000 between 1998 and 2001 while applications for special beef premium dropped by 19,000 between 1999 and 2001. The number of ewe premium applications dropped by over 6,000 between 1998 and 2001 while the reduction in slaughter premium applications between 2000 and 2001 was about 600. A considerable drop of almost 20,000 in applications under disadvantaged area schemes was recorded between 1998 and 2001. These statistics speak volumes for the record of the Minister in relation to farms and farming families during his time as custodian of our agriculture industry. There is conclusive evidence that the numbers of farmers and herds have decreased, which is extremely serious.

I urge the Minister to ensure this crisis does not continue. The outstanding payments I have mentioned should be given priority attention. Departmental staff should do the work needed to expedite the payments manually if the technology section is unable to make computer systems compatible. As I am sure one does not need to have the scientific ability of Einstein to do it manually, a few civil servants should be employed to reduce the levels of stress, hardship and concern among farmers. I thank the Cathaoirleach for permitting me to discuss this subject.

Minister for Arts, Heritage, Gaeltacht and the Islands (Miss de Valera)

I thank the Chair for allowing me to speak and Senator Taylor-Quinn for raising this matter. I apologise on behalf of my colleague, the Minister for Agriculture, Food and Rural Development, Deputy Walsh, who asked me to speak in this debate.

Over the past four years the Department of Agriculture, Food and Rural Development has made huge strides in the timely and efficient delivery of payments to farmers. Quality of service is an integral part of its operations and it acknowledges the importance of providing services in an efficient, effective and user friendly manner. Since 1 January 2001 over €1.243 billion has been issued to farmers under the various premium and area based compensatory allowance schemes, of which over €830 million relates to payments made under the 2001 schemes. In the last month over 80,000 payments totalling almost €68 million have been made. The process of introducing a new mapping and area aid processing system has raised some issues in clearing a small number of payments. The first and main phase of the redevelopment has been completed and every effort has been made to keep delay to a minimum, including the use of manual payments.

The target dates for paying eligible applicants under the various schemes are set out in the protocol on direct payments to farmers. Ewe premium scheme payments are normally made in three instalments. Payment of the first instalment was delayed somewhat due to the need for enhanced controls following from discrepancies highlighted in the Cooley Peninsula during the foot and mouth disease cull, but payments commenced on 20 July on which day 74% of applicants were paid. Payment of the second and third instalments commenced in line with the protocol targets and 95% of applicants were paid within one day.

In so far as the special beef premium and suckler cow premium schemes are concerned, EU regulations provide that an advance payment of 60% entitlement can commence on 16 October each year. Given the problems for farmers which arose as a result of the foot and mouth disease crisis last year, the Minister was instrumental in securing an increase in the rate of advance payment under these schemes from 60% to 80%. To date, some 96% of suckler cow applicants have received their advance payments while almost 92% have received their balancing payments.

In the case of the special beef premium scheme, 95% of January-November 2001 applicants have received their advance payments while those who applied in December 2001 will be paid their advances during next week. It is intended that balancing payments under this scheme will commence in April when the national quota usage for 2001 has been fully established. EU regulations and the protocol arrangements provide that all balancing payments under these two schemes must be made by 30 June 2002. Payment of 2001 extensification premium is not due to commence until June 2002 in line with protocol commitments.

The move from an animal based payment system to an area based payment under the disadvantaged areas compensatory allowance scheme greatly facilitated simplification of the scheme with the result that payment of full entitlements commenced on 21 September 2001 on which day 80% of applicants were paid. The current position is that in excess of €214 million has been paid to 97% of applicants under the scheme.

Payments under the arable aid scheme commenced on 16 November in line with EU regulations and protocol commitments on which day 95% of applicants were paid. By the end of 2001 over €128 million was paid to 98% of all applicants.

The agriculture and food industry is vital to our economy. The key to maintaining an industry that is vibrant and economically sustainable is through market access. This requires a system that respects the consumer's need for transparency and traceability through each link of the chain right back to production. Farmers are the first link in this chain. That is the reason the European Union insists that livestock premia payments are made in respect of animals that are traceable in accordance with a well developed and reliable system for identification and registration of animals. Not alone must cattle on which premium is being claimed be compliant with identification and registration requirements, so too must all other bovine animals on the holding.

In Ireland the system for identification and registration of cattle is called CMMS. The Department has been making progressive use of the CMMS database in processing applications since 1997-98. In line with EU requirements cross-checks against the CMMS have been intensified since January 2000. The relevant regulation stipulates that premium can only be paid in respect of an animal properly recorded on the CMMS. For example, under the 2001 suckler cow premium scheme, over 1.1 million animal tag numbers have been cross-checked in this manner and difficulties initially arose in respect of about 30,000 tags, or 2.7% of animals. These difficulties mainly relate to farm-to-farm movements where, unfortunately, either the seller or buyer, or both, fails to notify the movement to the CMMS. We are also experiencing difficulties with birth and death notifications to the database.

In quite a number of cases, according to the CMMS, animals being applied on as cows were heifers at the time of application. A further difficulty arises when farmers dispose of animals on which they have applied for premium during the retention period. The Department, through contact with individual farmers, is making every effort to have all these outstanding problems cleared as quickly as possible.

The Department's fundamental purpose is to serve the citizen in a proper, fair and impartial manner which will ensure a high degree of farmer and public confidence. Raising the quality of services and responding positively to customer needs are, and will continue to be, operational priorities in all the Department's activities.

The Seanad adjourned at 4.05 p.m. until 10.30 a.m. on Tuesday, 26 March 2002.