Simon Coveney (Cork South Central, Fine Gael)

At the outset, I wish to state categorically that there are no delays in payments to farmers under the big schemes, the single farm payment scheme or the disadvantaged areas scheme. In the case of the single payment, the earliest payment date under the governing EU rules is 1 December, while in respect of disadvantaged areas, there is no regulatory payment date. It is generally recognised, however, and indeed acknowledged in the farmers' charter, that a payment target of late September of the year in question is the most realistic. These dates are not only being respected but the current level and date of payments is ahead of that schedule.

In the case of the single farm payment, it should be remembered that the earliest payment date provided for under EU rules is 1 December. As I am particularly conscious of the difficulties caused for farmers by the current financial crisis and am also acutely aware of the significance to the wider rural economy of the single payment, earlier this year I successfully sought the approval of the Commissioner to have advance payments made as and from 17 October, a full six weeks earlier than the normal commencement date. This is the earliest possible legal date for making payments; it is actually the start of the new EU financial year.

I am satisfied that arrangements are well advanced to ensure the maximum number of SFP applicants are paid their 50% advance payment as and from 17 October. Furthermore, total expenditure under the 2011 single farm payment will reach €1.2 billion by 31 December. This is much sooner that many other member states, who only commence their payments in December and who are then allowed to finalise them by the legal deadline of June 2012. Next week alone, €444 million will be paid out in single farm payments.

With regard to the disadvantaged areas scheme, Deputies will be aware that payments commenced, on target, on 22 September, with payments issuing to those farmers whose applications had been confirmed eligible for payment at that time. I can confirm that my Department has, in the interim, continued to pay individuals as their cases became clear, with payment runs taking place twice a week. This is normal practice and will continue on an ongoing basis, as necessary.

I am pleased to note that payments worth in excess of €173 million have issued to date, representing almost 80% of applicants and are well ahead of the equivalent period in 2010. We are almost €50 million ahead of where we were this time last year. We are trying to drive efficiency and improvement in services this year compared with last year, and we are succeeding, both in single farm payment and disadvantaged area payment. This is despite the fact that I know some farmers are frustrated. Points of clarification are needed on mapping, stocking rates, eligibility and over-claims. We are redoubling our efforts to ensure those issues are ironed out as quickly as possible so that payments can be made.

For all payments that have a significant EU funding element, whether it is the single farm payment which is 100% EU funded or other schemes that are co-funded, we must cross every t and dot every i, and make sure that every map is properly digitised and that maps for schemes such as the agri-environment options scheme, AEOS, and disadvantaged area payments match the maps for single farm payments. Every payment we make will be audited and if we make mistakes we will be fined or our funding allocation will be reduced, which means less money for farmers.

I am aware there is frustration and I have had multiple meetings in my Department to try to ensure that we remove barriers to quick decision making and to get information back to farmers as quickly as possible in all schemes. I am also aware there is a particular concern in regard to AEOS, where payments have begun. Up to 3,000 people have received their payment for the last three months of last year, which were due over the summer. We have significant and complex mapping problems which need to be rectified, and are being rectified. Payments are being made, as we speak, on a twice-weekly basis. We will continue to redouble our efforts to make sure that happens.

AEOS is a new scheme. It was put in place by the previous Government. It is a much more complex scheme to implement and map than REPS was, for example. REPS was a dream scheme in many ways. The new scheme has, unfortunately, resulted in complex mapping and digitisation issues, which have taken time to resolve. We have put more resources, effort and emphasis on getting those issues resolved as quickly as possible, and I will continue to ensure that farmers, many of whom need and want this money and are relying on getting it, will be paid as soon as possible.

There is no lethargy or tardiness in my Department with regard to this issue. We are well ahead of last year's figures and will continue to try to improve efficiency, because it can be improved. We are well on our way to doing that.

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