Dáil Éireann Debate, Wednesday - 1 December 2021
221. Deputy Matt Carthy asked the Minister for Agriculture, Food and the Marine the statutory instrument which facilitates his Department to imposing penalties on payments relating to Pillar 1 payments of the Common Agricultural Policy; and if he will make a statement on the matter. [59286/21]
Amharc ar fhreagraThe rules governing undue payments, penalties and interest under Pillar 1 schemes are set down in a combination of EU Regulations and Statutory Instrument. The details are given in Terms and Conditions of the Basic Payment Scheme.
The 2021 Terms and Conditions state "Where farmers do not meet scheme rules, their payments can be reduced, and penalties applied. Where the claimed area is over-declared and the total eligible area determined is not sufficient to support the number of entitlements held, then reductions/penalties will be applied as per Article 19(a) of Commission Delegated Regulation (EU) No 640/2014. Revised penalty arrangements apply from 2016 for the EU Basic Payment Scheme (BPS), the Young Farmers Scheme, the Areas of Natural Constraints Scheme and the Areas of Specific Constraints (Islands) Scheme only. The existing penalty arrangements as per Article 19 of Regulation No. 640/2014 will continue to apply for all other area-based schemes. Article 54 of Commission Regulation 1306/2013 states “for any undue payment following the occurrence of irregularity or negligence, Member States shall request recovery from the beneficiary within 18 months after the approval”. Article 58 of the same regulation also states that Member States shall “recover undue payments plus interest”. Furthermore Article 7 of Commission Implementation Regulation 809/2014 states that “if undue payment is made, the beneficiary shall repay the amount in question plus, where applicable, interest.”
In terms of the collection of outstanding debts, the 2021 Terms and Conditions also state "
"Any outstanding debts due to the Department in respect of the Direct Payment Schemes and payments under Rural Development Schemes will be subject to interest charges in accordance with the provisions of the SI No 13 of 2006, European Communities (Recovery of Amounts) (Amendment) Regulations, 2006. Such debts will be recovered from future payments due if not already refunded in full by the farmer".
