Tom Hayes (Tipperary South, Fine Gael) | Oireachtas source

The issue of land eligibility is particularly crucial in the context of the various area-based schemes operated by my Department. The Deputy will be fully aware of the value of these EU-funded direct payment schemes to Ireland, with Irish farmers benefiting annually from funding of over €1.5 billion under schemes such as the single farm payment scheme, the disadvantaged areas scheme, the agri-environment schemes etc.

The European Commission has an obligation to ensure that member states manage and use the EU funding granted to them in accordance with the very restrictive provisions governing the schemes and general financial provisions.

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Under the Common Agricultural Policy, this is done by way of a clearance of accounts procedure, a formal process in which both the Commission and member states are obliged to adhere to the requirements laid down in the legislation. This is an extremely serious process. During the period 2002 to 2012, the Commission imposed financial corrections amounting to €5 billion on member states. Ireland’s share of the total amounted to €25.6 million or 0.5% of the total amount corrected, which is one of the lowest percentages among member states.

Deputies will be aware of the process, which involves audit missions, follow-up correspondence and formal bilateral meetings between the two parties followed by further correspondence, leading ultimately to the Commission’s letter of findings. This letter, which was recently received, proposes significant correction totalling €181.5 million. This is a 2% flat rate correction over five years on €9 billion in expenditure and significantly ahead of the level that might reasonably have been anticipated.

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