Under EU Regulations governing the Direct Payment Schemes my Department is required to recover any monies resulting from the application of reductions and/or penalties. My Department is obliged to recover the amount from either the payment due for the calendar year of application or from payments due in future calendar years if not already repaid in full by the applicant. Where an administrative fine has been applied the monies owing can be recouped over the course of the three years following the year in which the determination was made, with any outstanding balance at the end of this three year period being cancelled.
In the vast majority of cases the penalty represents a reasonably low percentage of the payment due and it would be inappropriate to delay payment pending the outcome of any review. If the timing of the penalty is such that any review is carried out before payment falls due then the payment is made in full where the penalty decision is overturned on review/appeal. Where a reduced or no payment has issued and the outcome of the review/appeal process results in a change to the reduction/penalty originally applied any monies owing are calculated and processed as a matter of urgency.
There is no specific provision in EU regulations governing the right of farmers to seek a review of decisions relating to penalties or to appeal the outcome of any review to the independent appeals office. The review and appeals machinery was introduced by my Department with a view to ensuring that every decision to impose penalties could be challenged by individual farmers.
The value of these schemes to Irish farmers is €1.8bn annually. Therefore it is incumbent on my Department to ensure that the EU regulatory requirements in this regard are implemented in full so as to avoid EU disallowances.