The fourth year application from the person named was chosen for a pre-payment compliance inspection. The inspection detected a number of breaches of the scheme conditions and a 30% penalty was imposed. It also emerged that there had been a reduction in the area eligible for payment. Where there is a reduction in the area eligible for payment, money paid previously in respect of the land in question must be recouped.
In accordance with a requirement of EU regulations, my Department must charge interest on all penalties and recoupments and the annual rate of interest is 8%. The total interest charge in this case amounted to IR£190.42. My Department will write directly to the person named within the next ten days to explain fully how his payment was calculated.