Tuesday, 4 February 2014

Questions (588)

Patrick O'Donovan

Question:

588. Deputy Patrick O'Donovan asked the Minister for Agriculture, Food and the Marine the position regarding a person's entitlements (details supplied); and if he will make a statement on the matter. [5698/14]

View answer

Written answers (Question to Agriculture)

It is important to note that all entitlements held under the Single Payment Scheme will expire on 31 December 2014. New entitlements will be allocated in 2015 using the ‘2014 value’ as the point of reference for the calculation. As the Company named received the direct payment under the 2013 scheme year, the Company holds the ‘allocation right’ whereby it will be allocated entitlements under the new Basic Payment Scheme in 2015. The Company also holds the ‘land reference’ in that it declared land in 2013 and will presumably also declare the land in 2015.

The issue relates to whether the persons named or the Company named controls the ‘2014 value’ of the leased entitlements. The status of leased entitlements and the issue of whether the lessor or the lessee controls the value of such entitlements remains the subject of negotiation at EU level. If it transpires that the company controls the value, then no further action will be required and the entitlements will be established in the name of the Company. If however the persons named control the value of the leased entitlements, then they will need to transfer that value to the company. It may be necessary for the leased entitlements to be transferred to the Company by way of a permanent transfer under the 2014 scheme year. However, depending on the outcome of the ongoing negotiations, there may an option for the persons named to continue the existing lease by way of a private contract clause. Whatever the mechanism used, it is important that the value of the leased entitlements be available to the Company, either owned or leased, for the calculation of new entitlements in 2015.

The persons concerned may wish to contact the newly established 2015 Direct Payments Information Centre at 0761 064438 or CAPdirectpayments@agriculture.gov.ie to discuss their circumstances in more detail.