Oireachtas Joint and Select Committees

Tuesday, 21 January 2014

Select Committee on Agriculture, Food and the Marine

Estimates for Public Services 2014
Vote 30 - Department of Agriculture, Food and the Marine (Revised)

1:45 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I have no problem giving credit where it is due. I have given credit where it is due in the context of correct decisions made by the previous Administration.

There was a requirement to reduce the cost of administration across government. That requirement was forced on both the previous Administration and the current one. I would like to believe the reductions relating to the Department of Agriculture, Food and the Marine were achieved in a way which did not undermine services to farmers. To be clear, the idea that one can simplify all of this and try to make a political point by stating we are cutting REPS payments by more than we are cutting administration costs is a non-runner. We can only do what we are allowed to do under agreements - the Croke Park and Haddington Road agreements - that were signed up to by the previous and current Government. One cannot just lay people off or reduce their salaries without agreement being reached on such actions. We have reduced staffing levels dramatically - by one third, to be precise - since 2009. Like all other public servants throughout the country, those in my Department have been obliged to accept reductions in their salaries. The idea that we could somehow start to slash both salaries and numbers in one Department and ignore the rules of engagement negotiated is nonsense, as I think the Deputy knows.

The issues relating to mapping have nothing to do with the writing of code or anything of that nature. The actual accuracy of maps has changed. Last summer we were required to introduce a new mapping system by the European Commission. We now rely on satellite imagery rather than images taken by high flying aircraft. Mapping systems are much more accurate than they have ever been and it is now much easier to identify land that is eligible and that which is not. Whether we like it, we must deal with the reality whereby land which attracted funding in the past, even as recently as last year, should not have attracted it. We addressed this matter last year in the context of more accurate mapping. We have put an appeals committee in place which involves staff from within the Department and external to it and which is chaired by Mr. Padraig Gibbons who was a popular choice among farmers. We will ensure farmers receive fair treatment. We are aware that 93% have no issue above the figure of 3%. In other words, a relatively minor over-claim took place and the figure for retrospection to 2009 will also be relatively minor because less than 3% of farmers' land is involved. The figure for the other 7% of farmers is slightly higher than this.

Approximately 400 farmers throughout the country have a difficulty in respect of over-claims in excess of 20%. We are going to try to deal with them on a case by case basis. If it is possible to do so, we will reduce the figure below 20%. We will work with farmers and net off parcels of land in respect of which they might have slight over-claims or under-claims. We will do everything possible to try to minimise the financial impact for farmers who, for whatever reason, over-claimed on land that was not eligible.

The alternative to doing that - which is the approach some other countries have taken - is that the Commission will estimate the level of overclaim, then multiply that figure significantly and apply a disallowance or a fine to the tune of approximately €160 million. That is the figure I have. Either we can try to solve this problem by accurately assessing what land was not eligible and in respect of which there was therefore an overclaim which must be repaid and we keep the repayments to a minimum by using such accuracy, which is what we are trying to do, or the Commission will do the job for us and it will be a much more significant figure that every farmer will have to pay because that disallowance will have to come out of the agricultural budget. That is the position and I believe the Deputy knows that. We have had this discussion in the Dáil. We must, whether we like it or not, deal with retrospective overclaims for the past four years, and we will do that. For most farmers, this is a relatively small sum of money. For farmers who have less than 3% of an issue, the average retrospection repayment is approximately €400 out of a figure of approximately €11,000 in terms of an annual payment.

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