Andrew Doyle (Wicklow, Fine Gael)
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Question 4: To ask the Minister for Agriculture, Fisheries and Food the reason for her Department's delay in processing REPS payments; the consultations she has had with the European Union on the matter; the arrangements that will be put in place to ensure that farmers do not face a cash-flow crisis as a result of the freeze on payments; and if she will make a statement on the matter. [7296/08]

Trevor Sargent (Dublin North, Green Party)
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The reply to this question is somewhat similar to that for Question No. 2.

In the course of discussions about the payment arrangements for REPS 4, the European Commission unexpectedly raised questions in early January about the long-established practice in Ireland of paying farmers in REPS 2 and REPS 3 in full at the start of each contract year. Thereafter, it was necessary to put these payments on hold, so as not to expose the Irish taxpayer to the risk of heavy fines.

Department officials immediately embarked on discussions with their counterparts in the Commission and the Minister, Deputy Coughlan, raised the matter with Commissioner Mariann Fischer Boel in Dublin when she attended the annual general meeting of the Irish Farmers Association in late January. The Minister also had further discussions with the Commissioner in Brussels on Monday last, at which the Commissioner indicated she had no objection to Ireland continuing to receive REPS payment claims and make payments, as has been done in the past, until the expiry of REPS 2 and REPS 3 contracts.

The Minister immediately directed the Department officials to take steps to release some €37 million in REPS 2 and REPS 3 payments, which had been on hold since early January. Payments for valid outstanding claims are now beginning to be issued. Payments to farmers who started contracts in REPS 4 in 2007 are also being issued since last week.

Andrew Doyle (Wicklow, Fine Gael)
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This matter was discussed at a meeting of the Joint Committee on Agriculture, Fisheries and Food. After decoupling and CAP reform, environmental measures were regarded as a means of making payments to farmers. It has been accepted that the REP scheme in Ireland is a model of how the scheme should operate. Early payment is one of its selling points. I take issue with the Minister calling the payment an "up-front" payment. It is early because it has been approved in advance. We made the same mistake at the committee meeting. If the EU is considering rolling out this model on a European scale, we should examine the Irish model to establish the aspects of it that are working. One such aspect is the early payment given to participants to carry out the necessary works and measures to comply with the rules.

For farmers whose REPS 2 term finished in October 2006, the process was supposed to start by January 2007; they could not take up REPS 3 and REPS 4 was not rolled out until much later. Therefore, those farmers have incurred a year's loss of income. Will the Minister of State comment on that?

Brendan Howlin (Wexford, Labour)
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I will call the Deputy again.

Trevor Sargent (Dublin North, Green Party)
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I thank Deputy Doyle for his thoughts on the scheme. They are useful in formulating the case to be made, but we are in ongoing discussions with the Commission. As he mentioned, they are the people we are focusing on helping. The Commission has put it to us that it needs to reconcile the area issue, particularly the REPS payment area that is taken into account and the integrated administration and control system overall. To date we have said there was no problem previously in this regard. The auditors have always been satisfied that what we have done represents total compliance with the spirit of the scheme. These discussions are ongoing. There are sensitivities about the issue, given that we are putting the case that we have, as the Deputy said, operated in the spirit of the scheme and have never been found to be at fault in how we operated it. Now is the time to put forward the points the Deputy made, namely, that this model is a good way of implementing the REP scheme and it encourages the maximum take up among farmers.

Andrew Doyle (Wicklow, Fine Gael)
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In terms of the time lag between farmers completing REPS 2 who could not take up REPS 4, I accept negotiations are ongoing on REPS 4. However, some farmers are being actively encouraged to move from REPS 3 in particular into REPS 4 and, to my knowledge, they have not been made aware of the implications of the payment schedule. I would welcome clarification on that. I reiterate we have a model that works. Our system should be considered a role model of how to roll out this scheme. I hope that when I go home today I will have received a cheque in the post.

Mary Coughlan (Donegal South West, Fianna Fail)
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Is the Deputy double-jobbing?

John Browne (Wexford, Fianna Fail)
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The Deputy must declare that.

Seán Sherlock (Cork East, Labour)
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He will have to get a financial statement.

Trevor Sargent (Dublin North, Green Party)
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I thought TDs were paid quite well.

P J Sheehan (Cork South West, Fine Gael)
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Deputy Doyle has a tax clearance certificate.

Trevor Sargent (Dublin North, Green Party)
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I will not get into that debate.

Andrew Doyle (Wicklow, Fine Gael)
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It has already been declared.

Trevor Sargent (Dublin North, Green Party)
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It was as much of a shock to us as to anybody else to learn that a problem was envisaged in the way we were proposing to make payments under REPS 4. We had to take quick action to ensure we did not alienate the people with whom we are now seeking agreement. We have always been on the right side of the law in this regard and we want to remain there. We wanted to ensure that farmers did not suffer any loss——

Andrew Doyle (Wicklow, Fine Gael)
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They lost sleep.

Trevor Sargent (Dublin North, Green Party)
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——whether it be sleep or anything else under the scheme in the final analysis. That is the reason we had to had to act quickly. Hopefully the matter can be successfully concluded but the negotiations are still ongoing.