Dáil Éireann Debate, Thursday - 18 November 2004
12 Mr. McCormack asked the Minister for Agriculture and Food if she can guarantee that deductions from farmers’ SFP will not exceed3%, when linear and other cuts are accounted for; and if she will make a statement on the matter. [29297/04]
View answerThe position is that a financial envelope has been made available to each member state for distribution to farmers by way of the single payment scheme to be introduced from 2005. The financial envelope represents the average value of livestock and arable aid premia paid in the member state during the three year reference period 2000-02 calculated at 2002 rates of payment. It also includes provision for the decoupled dairy premium payable from next year.
My Department is in the process of calculating entitlements for each farmer and has already issued provisional statements of entitlements to some 130,000 farmers. In addition, my Department is processing applications from farmers who have applied to be treated under force majeure provisions and as new entrants to farming during the reference period. The three year average would not apply to successful applicants under these measures and this would have an impact on the financial ceiling. EU regulations provide that where the sum of individual farmers’ entitlements exceeds the financial ceiling, then a percentage linear reduction in entitlements is to be applied so as to respect the overall financial ceiling. It is too early yet to say whether Ireland is likely to exceed its financial ceiling.
Member states are also obliged to set up a national reserve using up to 3% of individual farmer's entitlements. Under the regulations certain categories of farmers are automatically entitled to make application to the national reserve and, where there are insufficient funds in the initial reserve to provide entitlements to these categories, the member state is obliged to apply a further linear percentage reduction. In allocating entitlements, each member state is obliged to apply objective criteria in determining the number and value of entitlements to be allocated to successful applicants with a view to ensuring equal treatment between farmers.
A single payment advisory committee has been established comprising representatives of the farming organisations and Teagasc to advise on the setting up of the national reserve. It was decided to apply a provisional reduction of 3% to set up the national reserve and this reduction is reflected in the provisional entitlements that have issued to farmers. The advisory committee has had a number of meetings already and my Department has recently asked the committee members for their views on proposals on the objective criteria to be used in allocating entitlements. My officials also continue to be in contact with the European Commission on various aspects of the arrangements for the implementation of the national reserve. It is too early yet to assess the situation with total precision.
Modulation is also to be applied to each farmer's single payment representing 3% in 2005 rising to 4% in 2006 and 5% in 2007. The amounts resulting from the application of modulation will be made available for funding of rural development measures.
