Brendan Smith (Cavan-Monaghan, Fianna Fail)

The agri-environment options scheme was launched in March this year with a closing date for applications of 17 May 2010. In all, 9,236 applications were received by the closing date. The processing of applications is well advanced at this stage and letters of approval for participation in the scheme have issued to almost 6,000 applicants or almost two-thirds of all applicants. The process is continuing and my objective is to ensure that the examination of all remaining applications is completed as quickly as possible with a view to early decisions on entry into the scheme. My Department will be in contact with the applicants concerned in the near future.

Based on the numbers of applications processed to date, the Department estimates that the average payment to participating farmers will be almost €4,000 per annum and that the total full year cost of commitments under the scheme will be in excess of €34 million. The EU regulations governing area-based schemes provide that payments issue in two instalments. The first instalment of 75% may be paid once all administrative checks on all applications, as well as cross-checks against areas declared on single payment scheme applications, have been completed. Once the approval process has been completed, my Department will direct its attention to issuing first instalment payments as soon as possible. The balancing payment of 25% can issue once all on-the-spot inspections for the year have taken place.

Scheme delivery in 2010 involves the examination, recording and processing to approval stage of a large number of applications and including the cost of developing an IT system for the ongoing and future implementation of the scheme. An accurate estimate of the cost of delivering the scheme will be difficult to compile due to the numbers of staff involved who are also engaged on other work. In any event, an estimate cannot be completed until all valid applications, including on-farm inspections, have been processed to payment stage. My intention, at all times, is to implement schemes as efficiently as possible.

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