This appeal has been examined in detail by the headage and premia appeals unit. The ewe premium scheme is governed by EU regulations which set down severe penalties for breaches of the terms and conditions of the scheme. The applicants failed to comply with the terms and conditions of the 1995 ewe premium scheme and, therefore, payment could not be made. However, in the light of the exceptional circumstances of the case, the Department is now making contact with the EU Commission in the hope of gaining some concession on behalf of the applicants. The applicants will be contacted as soon as there are any developments.