Dáil debates

Wednesday, 12 October 2011

Oibreacha Athchóirithe Scoileanna

Grant Payments

4:00 pm

Photo of Paul ConnaughtonPaul Connaughton (Galway East, Fine Gael)
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I thank the Ceann Comhairle for the opportunity to speak on this and I thank the Minister for being here to reply.

In recent weeks I have been inundated with calls from farmers on the length of time it has taken to get payments such as REPS and AEOS payments, which have been through due process and paid out. It stems from a problem with the digitisation of maps and other issues and at this point it is difficult to understand how a new mapping system could be causing such lengthy delays. It causes great concern, anger and frustration among the farming community and I call the Minister to do whatever he can to rectify this issue as soon as possible.

As the Minister and those who have a knowledge of the farming community know, in many cases the money has already been spent, sometimes on compliance with the AEOS scheme or in the last number of months to purchase fertiliser or to make silage. This money may now be owed to contractors or co-operatives, putting huge financial pressure on farmers. Some farmers might also have family members at college who would be expecting this money in recent months and will have budgeted for it.

Another issue causing great frustration is the lack of feedback from the Department. Many farmers who have been on to me submitted their applications many months ago only to find recently there is a problem with the application now. Surely this information should have been relayed to the applicant immediately, easing the frustration and the backlog in the Department. I suggest a lack of communication between relevant sections within the Department is causing this information blackout for farmers. Also, the way of communicating with the Department must be improved. Many farmers are being given a freephone number which leads them on a merry-go-round and leaves them with more questions than answers. They might have to telephone Portlaoise and then telephone another Department office, their file might be in one office and then they are told it is in another office. Instead of getting concrete answers, they are left asking where their files are and what point the application is at.

The biggest fear amongst farmers is that this delay will affect other payments such as the single farm payment, which is of huge importance to the farming community, and I ask the Minister to make sure the first 50% of this payment is paid out on time. I understand the Minister has only been in his position for a short time and I have no doubt he is still finding his feet but we must look to the future on this issue to make sure this does not happen again next year. I suggest a streamlining of the payment system so it could be centralised, which would make the processing of these applications more efficient so from the moment a person makes an application, he or she can easily track the file and any issues that might arise and if corrections must be made there would be an opportunity to fix them so the file could be resubmitted and payment received as soon as possible.

I thank the Minister for Agriculture, Fisheries and Food and the Minister for the Environment, Community and Local Government for gaining a two week extension to the spreading of slurry due to extremely wet weather. This issue was causing great concern and a common sense approach has won out.

I congratulate the Minister on his first six months in the job and I know he is passionate about this industry and the potential that lies within it and I understand that these issues predate him getting the job. The agri-sector is doing well at the moment but for some farmers, especially those in disadvantaged areas, these payments are of huge importance and I ask the Minister to try and find resolutions to these problems as soon as possible.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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At the outset, I wish to state categorically that there are no delays in payments to farmers under the big schemes, the single farm payment scheme or the disadvantaged areas scheme. In the case of the single payment, the earliest payment date under the governing EU rules is 1 December, while in respect of disadvantaged areas, there is no regulatory payment date. It is generally recognised, however, and indeed acknowledged in the farmers' charter, that a payment target of late September of the year in question is the most realistic. These dates are not only being respected but the current level and date of payments is ahead of that schedule.

In the case of the single farm payment, it should be remembered that the earliest payment date provided for under EU rules is 1 December. As I am particularly conscious of the difficulties caused for farmers by the current financial crisis and am also acutely aware of the significance to the wider rural economy of the single payment, earlier this year I successfully sought the approval of the Commissioner to have advance payments made as and from 17 October, a full six weeks earlier than the normal commencement date. This is the earliest possible legal date for making payments; it is actually the start of the new EU financial year.

I am satisfied that arrangements are well advanced to ensure the maximum number of SFP applicants are paid their 50% advance payment as and from 17 October. Furthermore, total expenditure under the 2011 single farm payment will reach €1.2 billion by 31 December. This is much sooner that many other member states, who only commence their payments in December and who are then allowed to finalise them by the legal deadline of June 2012. Next week alone, €444 million will be paid out in single farm payments.

With regard to the disadvantaged areas scheme, Deputies will be aware that payments commenced, on target, on 22 September, with payments issuing to those farmers whose applications had been confirmed eligible for payment at that time. I can confirm that my Department has, in the interim, continued to pay individuals as their cases became clear, with payment runs taking place twice a week. This is normal practice and will continue on an ongoing basis, as necessary.

I am pleased to note that payments worth in excess of €173 million have issued to date, representing almost 80% of applicants and are well ahead of the equivalent period in 2010. We are almost €50 million ahead of where we were this time last year. We are trying to drive efficiency and improvement in services this year compared with last year, and we are succeeding, both in single farm payment and disadvantaged area payment. This is despite the fact that I know some farmers are frustrated. Points of clarification are needed on mapping, stocking rates, eligibility and over-claims. We are redoubling our efforts to ensure those issues are ironed out as quickly as possible so that payments can be made.

For all payments that have a significant EU funding element, whether it is the single farm payment which is 100% EU funded or other schemes that are co-funded, we must cross every t and dot every i, and make sure that every map is properly digitised and that maps for schemes such as the agri-environment options scheme, AEOS, and disadvantaged area payments match the maps for single farm payments. Every payment we make will be audited and if we make mistakes we will be fined or our funding allocation will be reduced, which means less money for farmers.

I am aware there is frustration and I have had multiple meetings in my Department to try to ensure that we remove barriers to quick decision making and to get information back to farmers as quickly as possible in all schemes. I am also aware there is a particular concern in regard to AEOS, where payments have begun. Up to 3,000 people have received their payment for the last three months of last year, which were due over the summer. We have significant and complex mapping problems which need to be rectified, and are being rectified. Payments are being made, as we speak, on a twice-weekly basis. We will continue to redouble our efforts to make sure that happens.

AEOS is a new scheme. It was put in place by the previous Government. It is a much more complex scheme to implement and map than REPS was, for example. REPS was a dream scheme in many ways. The new scheme has, unfortunately, resulted in complex mapping and digitisation issues, which have taken time to resolve. We have put more resources, effort and emphasis on getting those issues resolved as quickly as possible, and I will continue to ensure that farmers, many of whom need and want this money and are relying on getting it, will be paid as soon as possible.

There is no lethargy or tardiness in my Department with regard to this issue. We are well ahead of last year's figures and will continue to try to improve efficiency, because it can be improved. We are well on our way to doing that.

Photo of Paul ConnaughtonPaul Connaughton (Galway East, Fine Gael)
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I welcome what the Minister has said, particularly his assurance that the single farm payment is on track. That will be welcome news. I also welcome his assurance regarding the problems of the digitisation of maps, whether for AEOS or REPS. I accept that the Minister and his officials are doing everything they can. The scheme predates his appointment as Minister. I accept that all barriers will be removed as soon as possible. I merely cite what farmers tell me. They say they are sent amendment forms which they return thinking they have fixed a problem, only to learn weeks later that the problem has arisen again. This is leading to frustration and anger.

I welcome the Minister's comments. I hope any delay in the digitisation of maps can be taken care of in the next number of weeks and those farmers who are due payment will receive it as soon as possible.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I understand from where the Deputy is coming. In his part of the country there is a high number of farmers who are reliant on REPS, AEOS, disadvantaged area payments and less favoured area, LFA, payments. The income from these schemes, which farmers rely on, is hugely important to rural communities, particularly in the part of County Galway the Deputy represents so well.

We are conscious of farmers' concerns. We saw their frustrations boil over this week, which was unfortunate. I understand the frustrations of the farming community. We are moving through the applications as quickly as we can. No effort is being spared. The proof of this is where we stand this year compared to where we stood last year in terms of overall payments. With regard to disadvantaged area payments, we are between €45 million and €50 million ahead of where we were last year. In terms of single farm payment, by the end of next week we will be more than €40 million ahead of where we were last year.

We have particular issues with regard to AEOS relating to the land parcel identification system. This takes paper maps which are sent to the Department, digitises them and puts them onto a computer so that the Department will have everyone's land parcels on computer and can process future payments more quickly. That is the purpose of digitising this information. We also need to digitise information so that we can directly compare maps that have been used for single farm payment with those used for AEOS. A huge number of maps have not matched up, so that field parcels do not look the same for single farm payments and AEOS payments. That is not because of a deliberate attempt to con the system. It is simply that the way maps were marked has caused conflicting information. This must be clarified because it will be audited. The last thing I want is for money that is currently available for AEOS payments to be reduced by the Commission because we are not seen to be doing our job efficiently.

The implementation of AEOS is particularly complex. We are in the first year of getting payments out. There have been teething problems and it has caused much frustration in the Department. The people who are in charge of resolving those issues are working incredibly hard to do that. I speak to them directly on a regular basis in an effort to be of assistance.

I assure farmers and those who represent them, as well as the Deputy, that my Department and I are well aware of the points he makes today. We are also keeping farming bodies aware of progress and stumbling blocks on a regular basis. There is not a lack of information or communication in this regard.