Brendan Smith (Cavan-Monaghan, Fianna Fail)

I thank the Deputy for raising this important issue. The introduction of the single payment scheme in 2005 brought the new concept of payment entitlements into the direct payments system. Payment entitlements are not attached to land but they are the property of the farmer who was farming during the reference period and was in receipt of direct payments under one or more of the livestock premium and-or arable aid schemes. Entitlements may be sold with or without land but can only be sold without land once 80% have been used in one calendar year. On the other hand, entitlements may only be leased to another farmer if accompanied by an equivalent number of hectares of eligible land but they may also be transferred, with or without land, by gift or through inheritance. The arrangements for the transfer of entitlements by way of sale, lease, gift or inheritance in respect of the 2006 and 2007 scheme years were clearly set out in press releases issued by my Department, which are available on its website. The application forms to be completed by farmers engaged in transferring entitlements are also available on my Department's website for people who may wish to access that information through this medium.

In this context, where an entire holding is being transferred within the ten-month period for compliance with the single payment scheme requirements, the transferee must complete a separate declaration of undertaking under which he or she undertakes to succeed to the responsibilities of the original applicant and, thereby, becomes entitled to payment. In all such cases, my Department, on receipt of the application to transfer entitlements, decides, on the basis of the date of transfer, whether the declaration of undertaking is required. Individual farmers need not, therefore, concern themselves with this aspect provided they have forwarded the application to transfer entitlements in the first instance. I am satisfied my Department has taken every opportunity for informing farmers and others about the introduction of the single payment scheme and the various requirements pertaining to the transfer of payment entitlements.

The arrangements governing the introduction of the scheme were the subject of two separate series of countrywide information seminars for farmers and others interested in the agricultural sector. In addition, separate information seminars were held for agricultural consultants and others involved in giving advice to farmers. A large volume of information was conveyed through the various media channels including radio and the farming press, while a number of information booklets were prepared and issued to individual farmers. I assure the Deputy that the Department is in the process of writing to the Incorporated Law Society pointing out the need for members of the legal profession, who are dealing with the succession of estates where single payment entitlements are involved, to familiarise themselves fully with the rules pertaining to these entitlements. This additional initiative will make a worthwhile contribution to the efficient operation of the scheme's arrangements to the benefit of all involved.

I assure the House that all of us want every applicant to receive his or her entitlements. The first year of the scheme went well, as it involved a major transformation from multiple schemes to a single payment scheme. A number of queries were outstanding but I assure the Deputy that the Department is anxious that every applicant receives his or her full entitlements and full information is available to them to assist them with queries that may arise regarding applications that are not straightforward. It behoves those giving advice to farmers, whether they are consultants, Teagasc officials or members of the legal profession, to ensure they are fully apprised of the rules on entitlements, transfer, etc. The additional initiative we are taking will be of benefit in ensuring each applicant draws down his or her full entitlements.

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