Dáil Éireann Debate, Wednesday - 22 March 2017
236. Deputy Michael Fitzmaurice asked the Minister for Agriculture, Food and the Marine the reason the current leasing entitlements without land clawback exception has been allowed to happen alongside the 50% clawback conditions of sale of entitlements without land, when less than €14,000 was drawn from these clawbacks in 2016; and if he will make a statement on the matter. [14305/17]
Amharc ar fhreagra237. Deputy Michael Fitzmaurice asked the Minister for Agriculture, Food and the Marine his views on the suggestion by an organisation (details supplied) that the same percentage, 20% clawback, be implemented on both sale and leasing of entitlements without land; and if he will make a statement on the matter. [14306/17]
Amharc ar fhreagraI propose to take Questions Nos. 236 and 237 together.
In accordance with the EU Regulations governing the operation of the Basic Payment Scheme, each Member State has the option to apply ‘clawback’ to the transfer of entitlements without land. Ireland opted to apply clawback on the sale of entitlements without land.
EU Regulations state that the application of "clawback" must not present a substantial obstacle or prohibition of the transfer of entitlements in a Member State. Ireland is one of the only Member States in the EU that operate a "conacre" system, and widespread corresponding short term leasing of entitlements. In many cases the only option open to Irish farmers at risk of losing entitlements due to non usage is to lease entitlements without land to a farmer who has "naked" hectares to use them, thereby safeguarding their assets. The introduction of "clawback" on leased entitlements would present a significant obstacle to this option.
The option to lease entitlements without land is critical for many Irish farmers who are unable to obtain sufficient hectares of land to use their entitlements annually. Under the Single Payment scheme the rotation of entitlements safeguarded farmers’ entitlements but this is not available under the Basic Payment Scheme where 100% of farmers’ entitlements must be used at least once every two years. A large number of farmers in Ireland depend on the availability of affordable leased/ rented land to use their entitlements. If farmers are unable to obtain leased/ rented land through unavailability or high price they are at risk of losing their Basic Payment scheme entitlements permanently through non-usage. In many cases the only option open to them is to lease their entitlements without land to a farmer who has naked hectares to use them, thereby safeguarding their assets.
Decisions in relation to Basic payment Scheme entitlements including the National Reserve and ‘clawback’ are made in consultation with the Direct Payments Advisory group which includes members of the main farming bodies and agricultural education and advisory services. Following consultation with this group a decision was made to reduce the level of ‘clawback’ on the sale of entitlements without land from 50% in 2016 to 20% in 2017. The group did not express support for the option to apply ‘clawback’ to the lease of entitlements without land.
