Mr. Paul Dillon:

I highlight the distinction between land that is and is not eligible. When we decide on the penalty that is to be applied, there is the standard application of the eligibility rules. The Deputy mentioned other European farmers, small farmers and so on. The rule is applied in the very same way to all farmers, big or small. The penalty is calculated on the basis that the land is deemed to be ineligible. It is deemed to be ineligible because at the time of the application the farmer declared land that had been burned. He or she had been warned not to declare land if it had been burned. When we carry out an investigation, we find which land has been burned and which has not. Every application is looked at individually. There are other reasons also. For instance, if a farmer has more land than he or she needs to cover his or her entitlements, that will affect the amount of money paid, for example, where he or she has more than enough land to claim if he or she is receiving an area of natural constraint, ANC, payment. Every case is looked at individually to calculate the penalties to be applied. My colleague will explain how the reductions are applied. The Deputy asked if it was the case that over a certain amount the penalties went up to 100%. Mr. Dinneny will explain how they are calculated.