For clarification purposes the figures provided in this Reply relate to the 2013 Single Payment Scheme, which was paid from 16 October 2013 (50% advance) in the 2014 EAGF financial year and 2014 Single Payment Scheme; this is payable from 16 October 2014 in the 2015 EAGF financial year. The Net National Ceiling for the 2013 SPS scheme-year was €1,255.5 million. The level of deduction applied, which is equivalent to modulation, was 10% on all amounts in excess €5,000 and 14% on amount paid in excess of €300,000. In addition, a deduction under Financial Discipline of 2.453658% was applied to ensure compliance with the new EU Budget, as agreed during the negotiations on the MFF and to provide for a Crises Reserve. The financial discipline deduction was applied, in accordance with the EU Regulations, on payments in excess of €2,000. Approximately 1% of the Financial Discipline deduction related to the establishment of the Crises Reserve and this will be refunded to farmers if it is not utilised during the 2014 EAGF financial year.
The modulation deduction no longer applies under the 2014 Single Payment Scheme. However, in order to ensure compliance with the new 2014 National Ceiling of €1,216.547 million a linear reduction was applied to payment entitlements under the provisions of EU Regulation 1310/2013. Under the provisions of this Regulation, Member States has a discretionary power to exclude the activated entitlements held by farmers, who claimed €5,000 or less under the 2013 Single Payment Scheme. I decided to implement this provision in order to protect smaller-scale producers in Ireland. The level of the linear reduction applied to those entitlements held by farmers, who claimed more than €5,000 was 10.49%. It will also be necessary to apply a Financial Discipline deduction under the 2014 Scheme to provide for a Crises Reserve in respect of the 2015 EAGF financial year. In that regard, the European Commission published a proposal for a Regulation of the European Parliament and of the Council providing for a Financial Discipline deduction of 1.301951% on all amounts in excess of €2,000 under the 2014 Schemes. It is open to the Commission to alter this rate following the preparation of the Amending Letter to the 2015 Draft Budget in October 2014 by way of an implementing act. There was and will be no deductions in respect of the National Reserve or for Young Farmers under the 2013 and 2014 Schemes. The deductions in respect of these measures will apply from 2015.
