Mary Coughlan (Donegal South West, Fianna Fail)

In early January, in the course of discussions on payment arrangements for REPS 4, the European Commission unexpectedly raised questions about the long-established practice of paying farmers in REPS 2 and REPS 3 in full at the start of each contract year. I met Commissioner Fischer Boel in Dublin to discuss this matter when she attended the annual general meeting of the Irish Farmers Association in January and I had further discussions with her in Brussels last Monday. I am glad to state that I obtained the Commissioner's agreement that Ireland can continue with the established practice until the expiry of REPS 2 and REPS 3 contracts. I am very grateful to Commissioner Fischer Boel for her personal intervention to resolve an extremely difficult situation.

I immediately directed my officials to take steps to release approximately €37 million in REPS 2 and REPS 3 payments, which had been on hold since early January, and payments for valid outstanding claims are now beginning to issue.

Payments to farmers in REPS 4 are governed by a new Commission regulation, which reflects the Commission's objective of integrating and harmonising the operation of the various farm payment schemes including the single payment scheme, REPS and the disadvantaged areas scheme. Inevitably, for farmers with contracts in REPS 4 starting from 1 January this year, the new rules will result in some changes from the previous payment pattern. My officials are in detailed technical discussions with the Commission services and both sides are committed to introducing any new arrangements in a way that will alleviate the impact of these changes on farmers. I expect the matter to be clarified shortly.

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