Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I am glad this question has been tabled because it gives me the opportunity to clarify an issue about which I suspect many farmers will ask me tomorrow at the ploughing championships. The Deputy will be fully aware of the importance of payments made under the single payment scheme, the disadvantaged areas scheme and other direct payment schemes to the annual income of Irish farmers. My Department is bound, under EU regulations, to maintain the accuracy of the land parcel identification system, LPIS, which underpins the processing of applications under these schemes, as well as the rural environment protection scheme, REPS, and the agri-environment options scheme, AEOS.

At the start of each year, my Department issues colour maps of all land parcels declared by farmers in the previous year together with a covering letter. In that letter farmers are reminded to examine each map carefully and to identify and exclude from their application all ineligible features such as buildings, farmyards, scrub, roadways, forests, lakes and so on included in the land parcels. There is, therefore, an onus on all farmers to ensure the area of land declared by them as eligible for payment under the direct payment system is accurate. They also are given the means to do so by making available the ortho-photos to them on an annual basis. These requirements are also made clear in the terms and conditions of the schemes, which accompany the preprinted application form issued to all farmers at the commencement of the application period each year. In view of the size and structure of farm enterprises in Ireland, farmers are fully aware of all of the non-eligible areas of their holdings. In addition to any changes submitted by farmers and to ensure the integrity of the LPIS, my Department continuously reviews the eligibility of lands claimed by farmers for the single payment scheme and other direct payment schemes.

This is the important part. As part of the clearance process, a bilateral meeting was held on 25 July between the European Commission clearance auditors and my Department. At that meeting it was agreed that to avoid a significant correction - which means fines or disallowances - this Department would be obliged first, to review its entire LPIS database and deal with ineligible features, in other words to re-digitise, second, to establish any overpayments due to the over-declaration and seek refund from the farmers involved since 2009 and third, to prepare a report of its findings to the Commission by 15 December.

Additional information not given on the floor of the House

This is a mammoth task but my Department is making efforts to ensure it will be completed in a manner that satisfies the Commission. The Department is currently reviewing all land parcels claimed in respect of the 2009 to 2012 direct payment scheme years. This effectively means a review of all 950,000 land parcels for each of four scheme years. As a result of this phase of this review, any payments made to farmers in respect of claimed areas, which were found to be ineligible, must be reimbursed.

If farmers are not satisfied with the determination made in their case, my intention is to introduce a robust and comprehensive appeal process. In the first instance, applicants will be entitled to have their case reviewed by submitting their appeal on the form provided by my Department. If they are not satisfied with the outcome of the review, they can appeal their case to the independent land eligibility appeals committee. This committee will consist of an independent chairman and appeal officers from the agriculture appeals office.

See this speech in context