Mr. Kevin Cardiff:

I will ask Mr. Fennessy in a moment to deal with our recommendations on the error rate. At the end of each section of our annual report, there is a list of our recommendations from the previous year and some indication of whether they have been addressed.

The land parcel identification systems, when satellite-based, are much more accurate. They find errors that might not have been spotted before by the old systems, but they also find sometimes that things have changed over a period of time and perhaps the old maps do not reflect that what was once a field has now partially become a track, or what was once grazing has since become overgrown or whatever. In that sense, satellite imaging makes a significant difference. In answer to Deputy Byrne's question, the satellite-based systems also sometimes find that whole parcels of land are claimed for that are mostly forest or largely ineligible. While the bulk of cases are exactly as Deputy Dooley suggests, that is to say, minor and not very serious, and perhaps there is a question as to whether the system should be simplified for those people, and under the new Common Agricultural Policy small farmers will have simplified rules, there are occasions when it is difficult to see how an error could be quite so big as it appears. That is not unique to new member states or old member states. That happens everywhere. There is one example in our annual report of a case in Northern Ireland where a parcel that was claimed for appeared from a satellite image not to qualify at all, or at least very little of it qualified. We are not saying anything about the particular farmer in that case, just that as an error, the land did not qualify but the claim was paid out.

We regularly recommend the simplification of systems with a view to having fewer errors and a more effective spending programme. We know that if recipients of benefits have to pay a lot and spend a lot of time managing the system, that is a reduction in efficiency. As auditors, we can make recommendations that complicate the system when we find the controls are not working. Compliance is very important. In areas where compliance is high, there is less need for controls and we will not get audit reports stating there is a need for more complex rules because the simple rules will have been well followed.

Deputy Dooley made a point about the non-agricultural areas and the public procurement rules. Incidentally, I thought Deputy Byrne was reneging on his urban credentials by admitting to going hill walking.