Seán Sherlock (Cork East, Labour)
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Question 2: To ask the Minister for Agriculture, Fisheries and Food the steps she is taking to release the current deadlock relating to payments under the rural environment protection, REP, scheme; the number of farmers involved; the state of negotiations with the Commission; and if the Government supports the Commission proposals relating to the restructuring of the REP scheme which has operated on a contractual basis for over 14 years. [7398/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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In early January, in the course of discussions on payment arrangements for REPS 4, the European Commission unexpectedly raised questions about the long-established practice of paying farmers in REPS 2 and REPS 3 in full at the start of each contract year. I met Commissioner Fischer Boel in Dublin to discuss this matter when she attended the annual general meeting of the Irish Farmers Association in January and I had further discussions with her in Brussels last Monday. I am glad to state that I obtained the Commissioner's agreement that Ireland can continue with the established practice until the expiry of REPS 2 and REPS 3 contracts. I am very grateful to Commissioner Fischer Boel for her personal intervention to resolve an extremely difficult situation.

I immediately directed my officials to take steps to release approximately €37 million in REPS 2 and REPS 3 payments, which had been on hold since early January, and payments for valid outstanding claims are now beginning to issue.

Payments to farmers in REPS 4 are governed by a new Commission regulation, which reflects the Commission's objective of integrating and harmonising the operation of the various farm payment schemes including the single payment scheme, REPS and the disadvantaged areas scheme. Inevitably, for farmers with contracts in REPS 4 starting from 1 January this year, the new rules will result in some changes from the previous payment pattern. My officials are in detailed technical discussions with the Commission services and both sides are committed to introducing any new arrangements in a way that will alleviate the impact of these changes on farmers. I expect the matter to be clarified shortly.

Seán Sherlock (Cork East, Labour)
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In some respects the issue has moved on since the question was tabled. However, I thank the Minister for her response. As soon as this issue came to light, both the Minister for Agriculture, Fisheries and Food and her Department took a highly proactive approach in respect of REPS 2 and REPS 3.

Is there a definite timeframe in which a decision will be made on the outcome regarding payments under the REPS 4 scheme? I understand negotiations are ongoing at present and I take cognisance of the sensitivities associated therein. However, I would appreciate the provision by the Minister of an approximate timeframe to Members.

Mary Coughlan (Donegal South West, Fianna Fail)
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I agree with the Deputy that the sooner this matter is dealt with, the better. I hope and have expressed the view that this will happen shortly. As for a timeframe, I expect it to occur within the next fortnight. As the Deputy correctly observed, my officials are in negotiations with the Commission on the matter at present.

Seán Sherlock (Cork East, Labour)
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I thank the Minister for her response. As a general point, this is a vital scheme and the income derived from it by farmers is essential to them. If the Minister has any scope to have the Irish model adopted throughout the European Union, it will be very positive for agriculture in Ireland and the Union. She might take this on board.

Mary Coughlan (Donegal South West, Fianna Fail)
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As the Deputy knows, Ireland is unique in that it is the only member state that pays 100% of the REPS payment up-front. Other member states are very happy with the new regulation stipulating that there be two separate payments, one of 75% and another of 25%. We are putting forward our specific views and concerns on the basis of our 14 years of experience with the scheme.