Dáil Éireann Debate, Tuesday - 17 October 2006
200 Mr. English asked the Minister for Agriculture and Food if her Department applies interest on outstanding payments due to farmers, where there has been an underpayment caused by a Departmental error; the interest rate charged in such circumstances; and if she will make a statement on the matter. [32470/06]
View answerMy Department's policy is to make all payments due to farmers on an accurate and timely basis. The record in this regard is excellent and the statistics in the most recent Annual Report (2005), show that the vast majority of payments to farmers, well over 90% for many schemes, were made in accordance with the targets laid down in the Charter of Rights for Farmers.
In the exercise of its functions as paying agency for EU Funds, including co-funded schemes, my Department is bound by rules laid down at EU level. The EU regulations laying down terms and conditions of these schemes do not include provision for the payment of interest by paying agencies.
My Department does apply the Prompt Payment of Accounts Act, 1997 and the regulations on combating late payment in commercial transactions. However, these provisions apply to the supply of goods and services, and do not apply to the grant and other schemes administered by my Department.
