The farming organisations were made aware in December 2007 of the fact that the EU Regulations governing REPS 4 might, if applied strictly, require a departure from the existing practice of paying REPS participants in full at the beginning of each contract year. My officials informed them that they were making every effort to persuade the Commission that the existing practice should continue for REPS 4.
Early in January, 2008 in the course of discussions on the interpretation of the new rules for REPS 4 payment's the Commission unexpectedly challenged Ireland's long-standing practice of paying REPS farmers at the beginning of each contract year. At that stage, some €6 million had already been paid to REPS 2 and REPS 3 farmers since 1 January 2008. My officials argued strongly with the Commission that the practice of paying at the start of the contract year is well established and one of which the Commission is well aware. My Department's position was outlined in considerable detail at a meeting with the Commission in Brussels on 25 January.
When Commissioner Fischer Boel was in Dublin three weeks ago to attend the Annual General Meeting of the IFA, I took the opportunity to make the same points directly to her and I emphasised the seriousness with which I regarded the situation. Following my latest round of discussions this week with the Commissioner, I am glad to report that my Department can continue as before in paying REPS 2 and REPS 3 participants at the beginning of each contract year. The Commissioner stated that she had no objection to Ireland continuing to receive REPS payment claims and make payments as has been done in the past, until the expiry of REPS 2 and REPS 3 contracts.
I have directed my officials to take immediate steps to release REPS 2 and REPS 3 payments, which had been on hold since early January and payment for valid outstanding claims will begin to issue later this week. Payments to REPS 4 farmers under contracts which commenced in 2007 are now issuing. My officials are in discussion with the European Commission on the payment arrangements to apply to REPS 4 contracts commencing in 2008 and I expect the matter to be clarified shortly.
