Brendan Smith (Cavan-Monaghan, Fianna Fail)

Following the submission of the unprecedented number of applications, the Minister took immediate steps to ensure applications were processed promptly and payment made to farmers as quickly as possible. I am satisfied this objective was met. The following were included in these measures to achieve these objectives: the implementation of procedures which resulted in the timely return of passports to farmers to allow them to dispose of their animals after the end of the retention period if they so wished; the processing of applications went ahead simultaneously in an efficient and effective manner.

As a result, my Department, despite the number of applications received, commenced advance payments on these animals in early March; the decision taken to estimate the special beef premium scheme overshoot reduction which enabled the balancing payments to be made to special beef, suckler cow and slaughter premium applicants. These balancing payments commenced in April 2005 and, consequently, farmers received payments in respect of the three schemes two months before they would otherwise have received them.

I refer to the impact of the overshoot reduction. The decision to opt for full decoupling was arrived at following careful consideration of all options and following a widespread public consultation process. A persuasive factor in this process was the suggestion that farmers in those member states who fully decoupled would not be disadvantaged during the transitional period. The level of the overshoot of the regional ceiling is attributable to the ending of the special beef premium scheme in 2004 and application patterns, both in terms of total numbers of animals applied upon and the timing of lodging of applications, strongly suggest this to be the case.

As has been made clear on numerous occasions, we are seeking a solution to this issue and will continue to do so with the European Commissioner. The Minister has raised the issue with the Commissioner on a number of occasions during recent meetings. My Department forwarded a detailed submission to the European Commission dealing with this matter last month. The matter has been discussed with the Commissioner's cabinet and with the most senior officials of the European Commission. Arrangements are being made for a meeting between my officials and the various services of the Commission's DG Agri. All aspects of the difficulties encountered by Irish farmers and all potential solutions will be explored during these discussions.

We have availed of every opportunity to press the European Commission for an appropriate solution to alleviate the difficulties encountered by beef farmers in Ireland as a result of the ending of the special beef premium in 2004. I assure the House that the Minister will continue to pursue the matter with the Agriculture Commissioner and Commission officials.

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