Trevor Sargent (Dublin North, Green Party)

The reply to this question is somewhat similar to that for Question No. 2.

In the course of discussions about the payment arrangements for REPS 4, the European Commission unexpectedly raised questions in early January about the long-established practice in Ireland of paying farmers in REPS 2 and REPS 3 in full at the start of each contract year. Thereafter, it was necessary to put these payments on hold, so as not to expose the Irish taxpayer to the risk of heavy fines.

Department officials immediately embarked on discussions with their counterparts in the Commission and the Minister, Deputy Coughlan, raised the matter with Commissioner Mariann Fischer Boel in Dublin when she attended the annual general meeting of the Irish Farmers Association in late January. The Minister also had further discussions with the Commissioner in Brussels on Monday last, at which the Commissioner indicated she had no objection to Ireland continuing to receive REPS payment claims and make payments, as has been done in the past, until the expiry of REPS 2 and REPS 3 contracts.

The Minister immediately directed the Department officials to take steps to release some €37 million in REPS 2 and REPS 3 payments, which had been on hold since early January. Payments for valid outstanding claims are now beginning to be issued. Payments to farmers who started contracts in REPS 4 in 2007 are also being issued since last week.

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