Michael Ring (Mayo, Fine Gael)
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Question 124: To ask the Minister for Agriculture and Food when he will meet with the IFA in regard to the proposed cuts in payments in commonage and SAC areas under the REP scheme; the measures he will take to resolve this problem for hill farmers; and if he will make a statement on the matter. [16271/04]

Joe Walsh (Cork South West, Fianna Fail)
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Payment entitlements under the new single payment scheme to be introduced with effect from 1 January 2005 will is to be based on the average amount received by farmers in direct payments during the reference period 2000 to 2002. EU regulations governing the single payment scheme provides that where a farmer was under agri-environmental commitments during the reference period, that is, where stock numbers were reduced because of agri-environmental commitments, the member State shall calculate the single payment on the basis of the amounts paid during the period 1997 to 1999. However, the regulations also state that in these cases care must be taken to avoid "double compensation" through both the single payment and agri-environmental measures.

To meet the Commission's concerns regarding double compensation, my intention in introducing the single payment scheme is that those farmers in REPS who had reduced sheep during the reference period is to calculate their entitlement on the basis of those reduced numbers. However these farmers, if they have entered into REPS contracts by January 2005, will be entitled to keep the existing payment under measure A of REPS for the duration of those contracts. Individual farmers in this category will of course be able to apply to exercise the option of either getting the single payment based on a reference period when no stock reduction was in place and at the same time getting a reduced agri-environmental payment or getting the single payment based on the reference period 2000 to 2002 and getting an agri-environmental payment which includes an element of compensation for destocking. Therefore the farmers concerned will not suffer any loss.