Tommy Broughan (Dublin North East, Labour)
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Question 116: To ask the Minister for Agriculture and Food when the bond for 2005 growers of oilseed rape crop grown for bio-fuels will be repaid; and if she will make a statement on the matter. [24624/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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Chapter 8 of Commission Regulation (EC) No 1973/2004 provides for the payment of aid to applicants under the Scheme of Aid for Energy Crops, before the raw material is processed. The aid, which is payable in addition to the Single Payment entitlements due to the applicant, is granted in respect of areas where the production of the raw material is covered by a contract between the farmer and a processor.

Where payment in advance is made to farmers, however, an appropriate security must be lodged by the processor, as guarantee that the Scheme requirements regarding processing of the crops will be complied with, after payment of the aid. This system of advance payments, secured by bonds, is common to very many EU schemes and is vital in releasing payments to scheme participants at the earliest possible date.

My Department releases the relevant securities to processors immediately on receipt of confirmation that the necessary processing of the raw materials has been completed. The verification process in respect of 2005 production is currently under way, with returns awaited from the processors concerned.