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Grant Payments.

Dáil Éireann Debate, Wednesday - 18 February 2004

Wednesday, 18 February 2004

Questions (41, 42)

Trevor Sargent

Question:

110 Mr. Sargent asked the Minister for Agriculture and Food the position the Government takes in relation to the €47.3 million worth of EU grants that should have been claimed by Coillte Teoranta; and if taxpayers are now to be required to pay the penalty for this mistake under EU regulation 2080/92. [2976/04]

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Paul Nicholas Gogarty

Question:

137 Mr. Gogarty asked the Minister for Agriculture and Food if he will report on the discussions his Department is having with Coillte Teroanta following a decision by the European Commission to withdraw a grant worth €55 million, the ruling that Ireland must return €8.3 million in grants already awarded and the axing of a further €47 million that was due to be provided in the future. [5066/04]

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Written answers

I propose to take Questions Nos. 110 and 137 together.

The EU Commission decided in July 2000 to disallow forestry premia paid to Coillte Teoranta under Regulation 2080/92 on the basis that Coillte was a public entity and as such not entitled to premia. The Government opposed this view and the decision was challenged in the European Court. The court ruled against Ireland on 16 October 2003. The matter has been discussed in detail with the Government's legal advisors and the Department has been advised there is no recourse to further appeal and the decision has been accepted.

The Commission's contribution to the disallowed premia has been repaid and no further premia are payable to Coillte. My Department has been in discussions recently with Coillte on the effect of the court's decision and these discussions are continuing.

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