Trevor Sargent (Dublin North, Green Party)
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Question 352: To ask the Minister for Agriculture and Food the reason the European Commission propose to disallow EU funds of circa €800,000 from the final claim under the forestry operational programme for agriculture and rural development 1994-1999; and the outcome of the proposal. [30164/04]

Mary Coughlan (Donegal South West, Fianna Fail)
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The European Commission has indicated that certain expenditure relating to staff costs for research and development under the forestry heading of the operational programme for agriculture and rural development, 1994-99, is ineligible for co-funding. Such expenditure had, however, been deemed eligible under the previous operational programme.

This matter has been in dispute for some time. It was agreed to exclude the expenditure in question from the formal closure of accounts procedure in 2003, on a 'without prejudice' basis. My Department, which now has responsibility for this matter, hopes to bring this matter to a conclusion very shortly.