James Bannon (Longford-Westmeath, Fine Gael)
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Question 762: To ask the Minister for Agriculture, Food and the Marine if his attention has been drawn to the ongoing problems in respect of grants to farmers who planted Miscanthus, as part of the bioenergy scheme of 2007; if his further attention has been drawn to the initial failure of the first crop (details supplied), which was in essence an experimental crop, and subsequent demand by him for the return of grants in some cases and the non-payment of such grants in other instances; and if he will make a statement on the matter. [1450/12]

Simon Coveney (Cork South Central, Fine Gael)
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As the Deputy may be aware, the pilot Bioenergy Scheme commenced in 2007 to support the establishment of the bioenergy crops miscanthus and willow by providing grant-aid of up to 50% of the establishment cost of the crop. Under the Terms and Conditions governing the Scheme, a maximum of 75% of the grant (1st Instalment Grant) was payable in year 1 following the successful establishment of the crop, with the balance of a maximum of 25% (2nd Instalment Grant) payable one year after payment of the 1st instalment, provided the applicant had adequately maintained and managed the crop, including the first year cut back.

In a small number of cases, where a crop was not satisfactorily established, payment was deferred and an additional growing season was given to allow for remedial work to be undertaken. The growers concerned were advised to apply for a repeat inspection which would result in payment once establishment was deemed satisfactory. The growers were given every opportunity to carry out remedial work and bring the crop up to the required standard. Where growers decided to withdraw their application before full establishment of the crop, any grant aid previously paid was recouped. In line with the Scheme Terms and Conditions, no payment was issued where the crop failed to reach the required standard and recoupment of some or all grant-aid paid was sought in some cases where the crop was not adequately maintained and managed as required at 2nd instalment payment stage.

Within the Terms and Conditions of the Scheme, applicants are advised to obtain independent technical advice as to the suitability of their land for planting willow and miscanthus crops and also to ensure that their plantation was adequately insured. A "best practice" guideline developed by Teagasc was also given to each applicant. As part of the application for pre-planting approval under the Bioenergy Scheme, each applicant signs a declaration stating that s/he has read and agrees to observe and be bound by the terms and conditions of the Bioenergy Scheme.

As you are may be aware, on Monday, 5th December 2011, I announced the re-opening of the Bioenergy Scheme for 2012. I have decided to amend the terms and conditions of the scheme so that participants are no longer required to maintain the crop for seven years as a condition of receiving grant-aid. I believe that the removal of this condition will help to make the scheme more attractive to farmers without reducing their commitment to establishing and properly managing the crop once they make the planting investment.