Joe Costello (Dublin Central, Labour)
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Question 10: To ask the Minister for Agriculture, Fisheries and Food if he will provide a breakdown of the level of REP scheme penalties on a county basis; if he will further provide a breakdown of penalties by measure; and if he will make a statement on the matter. [16931/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The details requested are contained in a tabular statement which will be circulated to Members. Under EU regulations, the Department is required to carry out controls each year on 5% of participants in REPS. These controls involve a full check of the farm plan as well as an on-farm inspection. Where farmers are found to be in breach of their undertakings, a penalty must be imposed. The penalties are set out in the scheme documentation. A farmer on whom a penalty is imposed has the right to appeal it locally in the first instance. If he is not satisfied with the outcome, he can appeal further to the Agriculture Appeals Office, and ultimately to the Ombudsman.

The financial value of penalties imposed since REPS began in 1994 is less than 1% of the total paid over that period to farmers, which now stands at more than €2 billion. This indicates that the penalty regime is reasonable and is applied sensibly, and also indicates the generally high level of compliance among farmers.

REPS has been one of the most successful schemes operated by the Department. It has delivered multiple benefits to the environment in terms of water quality, biodiversity, conservation and landscape enhancement. It has also brought welcome income benefits to farmers, with more than €342 million paid out to REPS participants last year, which was the highest level in any year since the scheme began. Payments due to REPS farmers this year will continue at that high level. Farmers will continue in REPS right up to the end of 2014. By the time the scheme finally comes to an end, payments to farmers will have exceeded €3 billion.

On 30 March this year, I launched a new agri-environment scheme using EU funding secured from modulation and the European Economic Recovery Package. A substantial top-up from the national Exchequer will allow for up to 10,000 farmers to be admitted to the new scheme at a rate of up to €5,000 a year for five years. The scheme is designed to make a positive contribution to the priorities of biodiversity, water quality and climate change. In those respects I am confident that it will build on the success of REPS and that it will be widely attractive to farmers. The number of individual penalties imposed per county will be circulated.

Seán Sherlock (Cork East, Labour)
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I do not have access to the tabular information. However, I accept the Minister's reply. In posing the question I was interested in finding out why farmers were becoming liable for penalties and what was the source of the non-compliance. If we had a record of that information, matters could be rectified in future.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I do not have an exact percentage breakdown between the reasons for the different types of penalty imposed. We will carry out a scoping exercise and provide the results to the Deputy. We did not have the time to gather that information in the time available as there is pressure to make payments in the REPS area.

By and large the farmer undertakes to comply with a number of conditions of the scheme. The penalties cover breach of scheme requirements, for example, not undertaking work signed up to or failing to complete the term of the contract and other issues such as late submission of payment claims. It is unusual but that actually happens.

Having spoken to officials towards the end of November last year I learned we had sent out a card that only had to be signed and sent back. We want to have the money sent out before the end of the year. We had to send out reminders to people and had to put a notice in the newspapers asking them to help us. We said we had the money, wanted to pay it and asked that the documentation be returned. It is not the most onerous task to return a payment claim. We will try to obtain for the Deputy, through a scoping exercise, the types of penalties that exist. At times an inspection will take place and the inspector will ask the person in question to rectify something that is relatively minor.

Seán Sherlock (Cork East, Labour)
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How many did not submit payment claims or did so late?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I believe the number is relatively small but late submissions necessitate otherwise unnecessary clerical work by the Department. It costs us to write to people. We even telephone people to ask them to return their claims before the end of the year so we can pay them. That is not always the biggest problem. Inspectors are trying to finalise submissions when they visit individual farmers.

Martin Ferris (Kerry North, Sinn Fein)
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The Minister will agree that the farmers in Kerry would not be too disappointed if they received a penalty of 1% given that they have been waiting since 15 December to receive their REPS payments.

Over €8 million is owed to REPS farmers in Kerry. Is it possible that payment could be speeded up? Some farmers are heavily in debt to the banks and the banks are putting pressure on them to make repayments. The farmers are depending on receiving their REPS payments in order to do so.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Deputy Ferris and all Members from Kerry have spoken to me on a number of occasions regarding delays in payments from the two offices in County Kerry. From recollection and from having spoken to Oireachtas colleagues in the past day or two, I note approximately 60% of payments had been made in County Kerry. There was a difficulty over staffing in the office but it has been resolved today. I hope we will be able to make payments rapidly.

Martin Ferris (Kerry North, Sinn Fein)
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I welcome the fact that the issue has been resolved because there has been no change to the figure of 60% that I received about six weeks ago.

Michael Creed (Cork North West, Fine Gael)
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The deadline of 17 May is looming. There are cases to be considered in the Department in respect of single farm payments and the agri-environment options scheme and some in respect of REPS 4. Some of those who applied to join REPS 4 did so over 12 months ago and have had no communication whatsoever from the Department. They expect, in the coming days, to receive a reply indicating in some fashion that their applications are deficient. They will have to return the applications through their planners by 17 May.

One should bear in mind the planners are working night and day to make single farm payment submissions and they are trying to deal with new applicants under the agri-environment options scheme. Some applications for REPS 4 have been with the Department for over 12 months. There is a small handful of cases nationwide. Can there be some leniency in those cases? If planners are logistically unable to submit all the applications and paperwork to the Department by 17 May, farmers will be the losers, through no fault of the planners. The planners submitted the applications in good faith over 12 months ago and have heard nothing from the Department.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I discussed the relatively small cohort to which the Deputy referred with officials relatively recently. I will obtain an update and inform the Deputy of the outcome on Tuesday next. I asked whether there was a provision that could facilitate those who, through no fault of their own, had not the opportunity to return a form.

Michael Creed (Cork North West, Fine Gael)
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A period of 12 months or more is unacceptable.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The schemes are run very efficiently. Many applications that are received are deficient. At times, the Department sends back applications for further clarification and in respect of which further data must be submitted. The replies do not always come as expeditiously as the Department would like. We want to ensure farmers receive their payments rather than deny them the opportunity of participating in a scheme.

Seán Sherlock (Cork East, Labour)
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The Minister stated the problem in Kerry was sorted today. What exactly does he mean by that?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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In order to sign off on some applications so payments can be made, officials of a certain rank are required. In the offices in question, we had no officials of that rank. An agreement has been reached to allow for officials to be put in place who will be able to sign off on the forms.

Seán Sherlock (Cork East, Labour)
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When?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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That will start immediately in regard to Kerry.

Seán Sherlock (Cork East, Labour)
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When can the farmers expect their payments?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I presume they will be sent out quite rapidly, although everybody will not have them on Monday.