Michael McCarthy (Cork South West, Labour) | Oireachtas source

The issue I raise is the position regarding the claw-back of single farm payments and the ongoing review of land parcels. Approximately 25,000 farmers face penalties ranging from €50 to more than €9,000 following the Department's review of 900,000 land parcels. This amount does not take into account the possibility that fines for some farmers will be multiplied by five if the Department moves to impose the penalties retrospectively. This is the critical issue.

More than 40,000 letters have been sent to farmers notifying them of irregularities. Many farmers will have penalties imposed on the basis of land which they were informed was an excellent habitat when they were in the rural environmental protection scheme. This is a source of serious concern to farmers in west Cork and many parts of west County Kerry. I discussed the issue a moment ago with Deputy Arthur Spring who noted that farmers in parts of County Kerry are experiencing similar difficulties to farmers in County Cork because the types of land in the two counties are not dissimilar.

I draw the attention of the Minister of State, Deputy Tom Hayes, to the severity of the fines being imposed on farmers retrospectively. The fines are based on the eligibility of land for single farm payments. While it is one thing to be fined, it creates considerable difficulty when one is fined retrospectively. Many farmers were shocked to receive a letter and the retrospective nature of the penalties is causing great angst among them.

Most farmers understood they had passed the eligibility test for the years 2008 to 2010, inclusive, only to receive a letter in July this year stating they may have been overpaid for these years. More than 25,000 of them now face penalties of between €50 and €10,000. The Minister of State will be fully aware of the importance to the annual income of farmers of payments made under the single farm payments scheme, disadvantaged areas scheme and other direct payment schemes. The money these payments generates enables farmers to discharge debts to creameries and co-operatives. Local economies very much depend on these payments, especially those at the lower end of the scale. It is reasonable to assume that this money, once recycled in the rural and social economy, has a significant economic benefit. I have no reason to believe this does not also apply in the case of the Minister of State's constituents in parts of County Tipperary.

The problem I describe is particularly acute in upland areas. It should be noted that certain categories of land which are deemed eligible in one scheme are deemed ineligible when one moves to a different scheme. The red lining of land parcels which deems areas with any level of scrub and trees to be ineligible runs against the spirit of the REP scheme as it encourages farmers to eliminate such features. Contradictory approaches are being taken in two different schemes, with one encouraging farmers to be environmentally conscious and preserve these types of features, while a second effectively encourages farmers to tear them down.

Chief among the steps I encourage the Minister to take is to address the retrospective application of fines. This is causing serious difficulty in these straitened times. People are conscious of every euro they spend and cut their cloth to measure when doing their annual accounts. It causes considerable difficulty if they are suddenly landed with an unexpected bill. Many of the individuals concerned receive small payments in any event, which means money is more precious. An annual bill of €500 or €600 is a large sum for many people in the current economic climate.

Inspectors must take a common sense approach to the difficulties faced by farmers on marginal land. I will make a number of further points when the Minister of State has replied.

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