Written answers

Tuesday, 31 May 2005

Department of Agriculture and Food

Grant Payments

9:00 pm

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 339: To ask the Minister for Agriculture and Food if a decision will be reached in the case of a person (details supplied) in County Kilkenny who has appealed the decision of his Department concerning their [i]force majeure[/i] application; and if she will make a statement on the matter. [17830/05]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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Following a full examination of the circumstances outlined in the appeal, the independent single payment appeals committee found that the original decision taken by my Department should be upheld.

However, my Department has re-examined the circumstances of this case and are satisfied that force majeure should be applied. As a result, the single farm payment entitlements will be based on 2002 only and the years 2000 and 2001 will be excluded. The person named was notified of this decision and an updated statement of provisional entitlements, reflecting this position issued on 30 May 2005.

Paul McGrath (Westmeath, Fine Gael)
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Question 340: To ask the Minister for Agriculture and Food if, in the context of the expected visit to this country of the European Commissioner for Agriculture in May 2005, she will raise with her the special beef premium overshoot, the projected loss of €80 million to farmers resulting from this problem and since the previous European Commissioner assured the farming community that there would be no loss to farmers arising from the re-negotiation of CAP and decoupling, and that the additional funds are secured from the EU. [17831/05]

Paul McGrath (Westmeath, Fine Gael)
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Question 341: To ask the Minister for Agriculture and Food the progress which has been made concerning the special beef premium overshoot which was identified as far back as 2003; the number of applications and the extent of the overshoot; and if she will make a statement on the matter. [17832/05]

Paul McGrath (Westmeath, Fine Gael)
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Question 342: To ask the Minister for Agriculture and Food if she has raised the matter of the special beef premium overshoot with the European Agriculture Commissioner; the date of her discussions with the Commissioner on this important matter; and the response from the Commissioner. [17833/05]

Paul McGrath (Westmeath, Fine Gael)
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Question 343: To ask the Minister for Agriculture and Food the estimated projected loss to farmers in Westmeath; if, owing to the special beef premium overshoot, a reduced rate of payment will be made to those persons. [17834/05]

Paul McGrath (Westmeath, Fine Gael)
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Question 344: To ask the Minister for Agriculture and Food if she will bring forward a Supplementary Estimate to compensate beef farmers who may lose out on payments due to the special beef premium overshoot. [17835/05]

Paul McGrath (Westmeath, Fine Gael)
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Question 345: To ask the Minister for Agriculture and Food when the matter of the special beef premium overshoot for 2004 was first discussed in her Department; when this matter was first brought to her attention; and the action taken by her on foot of becoming aware of this problem. [17836/05]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 340 to 345, inclusive, together.

As the Deputy is aware, Ireland implemented the single payment scheme in January 2005. The special beef premium scheme, along with the slaughter premium scheme, were the only schemes where the deadline for the receipt of applications was 31 December 2004. This meant that as many farmers as possible submitted their applications in late December 2004 in order that they could benefit from the special beef premium. Under the 2004 scheme, applications for in excess of 2.4 million animals were lodged, of which almost 1.4 million were quota animals, that is, first age bull animals. The application figure in each of the previous three years was 1.9 million animals. During December alone, applications in respect of 930,000 animals were submitted compared with 600,000 during December 2003.

Following the receipt of such a large volume of applications in December, I took immediate steps to ensure that the applications were processed promptly. In the first instance, procedures were put in place to return the animal passports to the applicants prior to the end of the retention period. This was achieved, as it was important in order that farmers were in a position to dispose of their animals after the end of the retention period if they so wished.

The processing of applications went ahead simultaneously in an efficient and effective manner. This processing involved computer validation and, where errors or inconsistencies were highlighted in such validation, those cases required individual attention. In many instances it was necessary to write to farmers to clarify the queries. Despite the number of December applications my Department was in a position to commence advance payments on these animals in early March.

The issue of full balancing payments is dependent on the eligibility of all animals being established. As this required in many instances writing to farmers whose animals were not eligible for payment, it was clear to me that establishing the definitive overshoot reduction would take some months. This would mean that, in view of the integrated nature of the bovine premia schemes, the balancing payments on the suckler cow scheme, the special beef premium scheme and the slaughter premium scheme could not be paid prior to June 2005 for applicants who claimed in excess of 25 animals under the special beef premium scheme.

However, I was determined to make balancing payments to all farmers as soon as possible. In that regard, on 6 April 2005 measures were implemented which enabled the balancing payments to be made to special beef, suckler cow and slaughter premium applicants based on an estimated special beef premium scheme overshoot reduction. These balancing payments commenced in April 2005 and consequently farmers received payments in respect of the three schemes two months ahead of when they would otherwise have received them.

I am fully aware of the impact that the overshoot reduction will have on beef farmers who claimed on more than 25 animals. The decision to opt for full decoupling was arrived at following careful consideration of all options and following a widespread public consultation process. A very persuasive factor in this process was the suggestion that farmers in those member states who fully decoupled would not be disadvantaged during the transitional period. The level of the overshoot of the regional ceiling is attributable to the ending of the special beef premium scheme in 2004 and application patterns, both in terms of total numbers of animals applied upon and the timing of lodging of applications, strongly suggest this to be the case.

I am seeking a solution to this issue and will continue to do so with the European Commissioner. I have already raised the issue with the Commissioner on a number of occasions during various meetings. My Department also forwarded a detailed submission to the European Commission dealing with this matter on 25 April 2005. The matter has been discussed with the Commissioner's Cabinet and with the most senior officials of the European Commission. Arrangements are being made for a meeting between my officials and the various services of the Commission's DG Agri.

I am availing of every opportunity to press for appropriate measures be put in place to alleviate the difficulties encountered by beef farmers in Ireland as a result of the ending of the special beef premium in 2004. I will continue pursue the matter with the Agriculture Commissioner and Commission officials.

Given the current position with regard to the processing of the 2004 scheme and the ongoing discussions with the Agriculture Commissioner on the quota overshoot, it is not possible at this stage, to be definitive about some of the issues raised.

Photo of Dan NevilleDan Neville (Limerick West, Fine Gael)
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Question 346: To ask the Minister for Agriculture and Food if she will re-examine an application for entitlements from the 2005 national reserve which was forwarded five days prior to the final closing day of the 18 February 2005 but was not received until the 23 February 2005. [17847/05]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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An application to the 2005 single payment scheme national reserve under category C was received in my Department from the person named on 23 February 2005. Since the final closing date was further extended to 16 May 2005, his application has been accepted.

Category C caters for farmers who, between 1 January 2000 and 19 October 2003, sold their milk quota into the milk quota restructuring scheme and converted their enterprise to a farming sector for which a direct payment under livestock premia and-or arable aid schemes would have been payable during the reference period 2000 to 2002.

In excess of 17,200 applications have been received under the national reserve in my Department's Castlebar office and are being processed at present. In view of the number of applications received and the documentation submitted, it will be some time before a decision is reached on whether or not the person named is entitled to an allocation from the reserve. He will be notified of his eligibility or otherwise as soon as all applications are processed.

Photo of Jim O'KeeffeJim O'Keeffe (Cork South West, Fine Gael)
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Question 347: To ask the Minister for Agriculture and Food what constitutes [i]force majeure[/i] as an acceptable explanation for not achieving 20 income units from farms within 12 months of start up; if it is necessary for this person to apply for consideration under this heading within the 12-month period; and if she will make a statement on the matter. [17856/05]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I assume the Deputy is referring to the farm income requirements set out in the installation aid scheme. The scheme sets out the following examples of force majeure which may be recognised where an applicant is unable to meet the conditions of the scheme: death of the applicant; serious illness-incapacity of the applicant; compulsory acquisition of all or part of the agricultural holding which was not anticipated on joining the scheme; a natural disaster; the accidental destruction of livestock and-or farm buildings on the farm; an outbreak of disease affecting birds or animals on the farm; an order of court for separation or divorce resulting in the land subject to the scheme having to be divided or sold; and other court order. Other circumstances may also be recognised by my Department as constituting force majeure. Applicants, or their representatives, are required to inform the Department in writing, without undue delay, of any likely request of force majeure.

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