Brian Cowen (Laois-Offaly, Fianna Fail)
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The farmers flat rate addition review group reconvened on 12 October 2006. Under the last partnership agreement "Sustaining Progress" there was a commitment that the relevant Departments and Offices would meet with farming representatives to elaborate on the data and methodology used in the calculation of the flat rate addition with a view to full transparency in its operation.

A working group chaired by the Department of Finance was convened to discharge the commitment. The methodology employed in the calculation of the flat rate refund was fully explained to the farming organisations over a series of meetings. In this regard, the commitment made under Sustaining Progress "to elaborate on the data and methodology used in this calculation with a view to full transparency in its operation" has been met.

However, the farming organisations subsequently questioned the continuing validity of a number of assumptions unpinning the flat rate calculation on the basis of developments in the farming sector since the methodology was last reviewed in 1988. In the context of the current partnership agreement "Towards 2016" the Government has agreed that the relevant Departments and Offices should meet with farming representatives to review the data and methodology used in the calculation of the farmer's flat rate addition.

As I have stated earlier the working group overseeing the review met on the 12th October 2006 and is due to meet again on the 1st November. In relation to the review providing an input into the forthcoming budget, the flat rate refund for unregistered farmers is examined every year in the lead up to the Budget. It is, however, not customary for me to comment on any possible changes to the existing rate which may arise in the context of the forthcoming budget.