Liam Aylward (Carlow-Kilkenny, Fianna Fail)
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Question 471: To ask the Minister for Agriculture and Food if her attention has been drawn to the anomaly in the regulations governing the single farm payment scheme whereby farmers who have let their land lose all of their entitlements if the lessee refuses to activate the entitlements; if the regulations under this scheme to protect such farmers will be amended; and if she will make a statement on the matter. [5138/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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The single payment scheme is applicable to farmers who actively farmed during all or any of the three reference years 2000 to 2002, inclusive, and who received livestock premia and/or arable aid payments in one or more of those years. There is provision under the EU regulations governing the single payment scheme for the transfer of entitlements by way of lease or sale. Entitlements cannot be leased without land. They can only be leased out if accompanied by at least an equivalent number of hectares of eligible land. A lease agreement may be considered as a lease of entitlements with land if a clause is included in the lease agreement indicating that the farmer intends to lease entitlements with the land. Both parties to the lease must complete and submit a specific application form to my Department for the transfer of entitlements, along with the completed SPS application.