Skip to main content
Normal View

Single Payment Scheme Administration

Dáil Éireann Debate, Thursday - 5 June 2014

Thursday, 5 June 2014

Questions (86)

Éamon Ó Cuív

Question:

86. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine if the EU Commission has indicated that it intends imposing a fine or penalty on Ireland arising out of map discrepancies on the single farm payment maps; the indicated size of the fine in question; when the Commission first indicated the imposition of a fine or penalty; the indicated amount of the fine or penalty; and if he will make a statement on the matter. [24068/14]

View answer

Written answers

The Deputy will be aware of the value of the EU funded Direct Payment Schemes to Ireland. Each year farmers in Ireland benefit from funding of over €1.5 billion under Schemes such as the Single Farm Payment Scheme, the Disadvantaged Areas Scheme, the Agri-Environment Schemes, etc. This comprises the entire net income of many thousands of Irish farmers.

The European Commission has an obligation to ensure that Member States manage and use the EU funding granted to them in accordance with the very restrictive provisions governing the Schemes and general financial provisions. Under the Common Agricultural Policy, this is done by way of a Clearance of Accounts procedure. This is a formal process and both the Commission and Member States are obliged to adhere to the requirements laid down in the legislation. In general, the process involves audit missions to the Member State by Commission officials; follow-up correspondence between the two parties on the findings of the mission and the observations and remedial actions undertaken by the Member States. There is also a formal bi-lateral meeting between the two parties followed by further correspondence. At the end of this phase, the Commission issues its letter of findings; as indicated, this letter issued very recently. The Member State has the right to ask for the matter to be reviewed by the Conciliation Body. This body will review the case and seek written and oral observations from each party. It will make its recommendations and the Commission will consider these before arriving at its final definitive decision.

In the case of Ireland, the Clearance procedure is currently covering five financial years involving the 2008 to 2012 scheme-years. I can confirm that my Department has been informed of a potential flat rate financial correction that the EU Commission may impose on Ireland in respect of the period 2008 to 2012 covering EU direct aid for the period of some €9 billion. I can assure the Deputy that every effort is being made to ensure that Ireland’s case and the position of Irish farmers is strenuously argued during the process. I can also reassure the Deputy that every effort is being made to protect the interests of all Irish farmers during the process including the interest of that majority of farmers, who were fully compliant in the declarations they made on an annual basis under the Schemes. During the years 2002 to 2012, the Commission imposed financial corrections amounting to almost €5 billion on Member States. Ireland’s share of this total amounted to €25.6 million (or 0.5% of the total amount corrected – one of the lowest percentages among Member States). Under the EU Regulations, the Commission has to right to impose a flat-rate correction of 2%, 5%, 10% or greater depending of its assessment of the risk to the EU Fund involved – a 2% correction on the 2008 – 2012 scheme years would mean, according to the Commission’s figures, a loss of €182m in funding to Ireland. On the other hand, the level of the correction can be based on the assessed risk if the Member State can establish the risk and the Commission are satisfied with the calculations. In such circumstances, if the risk is dealt with by the Member State by collecting the debts arising from the over-payments, the amounts collected is taken into account by the Commission in its final assessment. This is the approach Ireland is following.

I am strongly of the view that a flat rate correction is not justified considering the work already carried out by my Department in order to accurately assess the calculated risk involved and the actions taken to eliminate that risk. A detailed case is being prepared for the EU Conciliation Body (which mediates on these corrections), which will argue strongly from both a legal and technical viewpoint that a flat rate correction is not justified for Ireland.

No final decision is expected until late in the year and in the meantime every effort will be made to keep any correction to an absolute minimum, recognising the vast amount of work which has been carried out to date by my Department to address land eligibility.

Top
Share