Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 247: To ask the Minister for Agriculture and Food further to Parliamentary Question No. 239 of 17 May 2006, if there is anything in the regulations prohibiting the payment of a national top-up; and if she will make a statement on the matter. [19828/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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Member States may only grant State aid where authorized to do so by the EU. The Council Regulation governing the restructuring aid does not provide such authority.

Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 248: To ask the Minister for Agriculture and Food if her Department charges interest on outstanding repayments due to her Department; the interest rate charged in such circumstances; and if she will make a statement on the matter. [19829/06]

Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 249: To ask the Minister for Agriculture and Food if her Department applies interest on outstanding payments due to farmers, where there has been an underpayment caused by a departmental error; the interest rate charged in such circumstances; and if she will make a statement on the matter. [19830/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 248 and 249 together.

In the exercise of its functions as an agency for the payment of EU funds, my Department is bound by rules laid down at EU level. The EU regulations dealing with schemes funded by the EAGGF Guarantee Fund require member states to charge interest at a rate determined in accordance with national legislation. These EU regulations are directly applicable and binding in their entirety in all member states. The rate of interest currently provided for in national legislation is 3%. Systems either are in place, or are being in put in place to comply with these requirements in relevant schemes. The question of interest does not arise in the case of an overpayment resulting from a Departmental error, and interest can be avoided altogether through the prompt payment of the relevant debts. No provision is made in the relevant regulations for the payment of interest by the paying agency. In addition, my Department fully applies the provisions of the Prompt Payments of Accounts Act 1997, as amended by the European Communities (Late Payment in Commercial Transactions) Regulations 2002.