Simon Coveney (Cork South Central, Fine Gael)
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Question 164: To ask the Minister for Agriculture and Food the discussions she has had with the EU Commission to index link the single farm payment; if she intends to make the payment in two instalments; and if she will make a statement on the matter. [33795/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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The agreement on the mid-term review of Agenda 2000 provided a financial envelope to each member state. This envelope represented the average value of livestock and arable aid premia paid in the member state during the three year reference period 2000-2002, calculated at 2002 rates of payment. The outcome, which will reshape the Common Agricultural Policy and secure its future in making it more relevant to modern society, was a balanced one which addressed Ireland's principal objectives. Among these objectives was the preservation of the financial benefits achieved under the Agenda 2000 agreement and the establishment of a policy framework that will allow farmers and the agri-sector the flexibility to adapt to evolving consumer and market demands and international circumstances.

Index linking of the single payment scheme was not an element of the Commission's proposals. There was, however, a proposal to provide for a reduction of up to 13% in the single payment, known as degression, to meet future financing needs. I believe one of the major achievements in the negotiations was the removal of this proposal. The removal of this particular provision means a saving of some €420 million for Ireland over the lifetime of the agreement. The compromise agreed was to allow the Council to review, from 2007 onwards, the financial situation annually if budget deficits arise.

Payments under the 2005 single payment scheme are due to commence on 1 December. I have no plans to make advance payments.

Eamon Gilmore (Dún Laoghaire, Labour)
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Question 165: To ask the Minister for Agriculture and Food if her attention has been drawn to the discrepancy between the number of farmers here which, according to her reply to Question No. 122 of 4 October 2005, was 135,300 in 2003 and the figures given in reply to Question No. 145 of 4 October 2005 which said that 149,000 applications had been received for the new single payment scheme; the reason for this discrepancy; and if she will make a statement on the matter. [34171/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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The single payment scheme has been implemented in Ireland for the first time in 2005. It replaces the livestock premia schemes and arable aid scheme in place until this year. I was determined to ensure that all potential applicants who farmed during the three year reference period of 2000-2002, or their successors, would be given every opportunity to apply under the single payment scheme. My Department mounted a major publicity campaign to ensure that those with entitlements were made fully aware of the need to submit single payments scheme applications.

The need to maximise applications under the scheme is particularly important since entitlements not activated by the deadline for the receipt of applications in 2005 — 16 May and up to 10 June 2005 in respect of late applications — are lost forever to the entitlement holder and revert to the national reserve. Entitlements that are activated can secure payment only if the applicant also declares eligible hectares which he/she is farming in the year of application.

The setting up of the single payment scheme involved the migration of data from source systems supporting arable aid and livestock premia schemes. Data for these systems were merged to calculate payment entitlements for every farmer in the country who received relevant payments during the reference period 2000-2002. This process resulted in 147,000 statements of provisional entitlements being issued to potential applicants. In addition, applications have been received from new applicants, dairy farmers whose only entitlement involved the dairy premium and from some people who do not have entitlements.

A number of entitlement holders for a variety of reasons, including persons who are not currently actively involved in farming, have only applied to activate their entitlements in respect of 2005 without claiming payment of aid and with the sole purpose of avoiding surrender of entitlements to the national reserve. Other applicants are activating their entitlements as required prior to transferring them to another person and are not applying to claim the single payment themselves. In these cases, as one would expect, there is a necessary element of double counting: for example, where a person who had established entitlements during the reference period had subsequently transferred his or her holding, both the transferor and transferee were obliged to submit application forms.

Submission of a single payment scheme application or possession of a single payment scheme entitlement does not automatically confer a payment right. In conformity with the relevant EU regulations, only active farmers, that is, those farming land in 2005 and with entitlements, are entitled to benefit from the payment under the 2005 single payment scheme.