Éamon Ó Cuív (Galway West, Fianna Fail)
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4. To ask the Minister for Agriculture, Food and the Marine the response he has given to the EU in view of the threat of a fine being imposed on his Department in relation to the single farm payment; when he expects this matter to be resolved; and if he will make a statement on the matter. [26239/14]

Éamon Ó Cuív (Galway West, Fianna Fail)
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Huge fines have already been imposed on farmers under various schemes because of errors that they could not have avoided owing to the fact that the accuracy with which a satellite can measure the ground is far greater than that achievable by a human being based on normal methods. In addition, there is now a threat by Europe to impose a very large fine on the Department. No doubt the Department will, as a consequence of not getting the money from the Exchequer, cut grant aid to farmers from State-funded schemes. When will we get the facts about this case?

Tom Hayes (Tipperary South, Fine Gael)
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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.

10 o’clock

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.

Michael Kitt (Galway East, Fianna Fail)
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I thank the Minister.

Tom Hayes (Tipperary South, Fine Gael)
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I need to continue to clarify because-----

Michael Kitt (Galway East, Fianna Fail)
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These answers are too long, in fairness.

Tom Hayes (Tipperary South, Fine Gael)
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I need to continue because the question-----

Michael Kitt (Galway East, Fianna Fail)
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There will be an opportunity for the Minister to come back in.

Éamon Ó Cuív (Galway West, Fianna Fail)
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The money allocated for farming has fallen, despite all the boasting by the Minister that goes on in the Department of Agriculture, Food and the Marine. Let us face the facts. According to a parliamentary reply, the level of direct payments from all schemes to farmers in County Galway decreased by 9% between 2011 and 2013, and that was before the fines. Further cuts are being made this year. This fantastic CAP that the Minister keeps talking about amounts to cut after cut. We were always going to get a CAP. The Minister comes in and says he has got so much so money. Did he think they were going to abolish the CAP altogether? The reality is that, over the next seven years, we will have less money, more schemes and even less money, more bureaucracy and red tape, more inspections and more penalties. On top of all this, the Minister is now saying that we are likely to have €160 million taken out of State funding for agriculture.

Tom Hayes (Tipperary South, Fine Gael)
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Those comments show why I wanted to finish my answer. I wish to state clearly that I regard the proposed disallowance as being wholly disproportionate to the level of actual risk to EU funds identified following recent audits. The Deputy should note that Ireland has the right, and fully intends to avail of it, to ask for the matter to be reviewed by the EU conciliation body. This body will review the case and seek written and oral observations from each party. I can confirm that a comprehensive, robust response is being prepared and will be delivered before the end of this month. Before the end of the year, that body will make its recommendations, which the Commission will consider before arriving at its final, definitive decision. It is also open to member states to initiate legal proceedings in the European Court of Justice in relation to any such clearance decision. I assure the Deputy that we will fight this tooth and nail and leave no stone unturned, because we have been compliant at all levels. The Department will make sure that people will not be overcharged.

Éamon Ó Cuív (Galway West, Fianna Fail)
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It is interesting that the Minister of State said that total disallowances from 2002 to 2012 were €25 million, yet now, suddenly, three years into this Government, we are threatened with a fine of €181 million, which I presume the Government is going to fight. Who makes the rules under which we are being fined? The Minister for Agriculture, Food and the Marine had an opportunity during Ireland's Presidency of the Council last year to look at these rules and to change them if he had found them disproportionate, which he now seems to be indicating they are. Why did he not change the rules when he had the opportunity and try to avoid this fine? The retrospective penalties that have been imposed on farmers in the past year have been totally unreasonable. It is claimed that most farmers got it right, but the percentage of farmers who got it wrong was, on the Minister's own admission, enormous. Why did they get it wrong? It is because, particularly with smallholdings, it is virtually impossible to get it right unless one owns a satellite.

Tom Hayes (Tipperary South, Fine Gael)
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I want to clarify and assure the Deputy that we will fight tooth and nail. The Deputy need not be under any illusion about that. We will make sure that no stone is left unturned in trying to achieve the best result for Irish farmers. We should all unite in trying to do the best job for farmers rather than try to be divided. Nobody wants to see a country such as Ireland, which has done its work properly in relation to all the schemes, penalised. We have been huge beneficiaries of the schemes, but this fine has come out of the blue. That is why we will do whatever we can, even if it takes going to the courts, to get what is rightfully ours. We will leave no stone unturned.