Mary Coughlan (Donegal South West, Fianna Fail)
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In the course of the ongoing discussions on the payment arrangements for REPS 4, the European Commission raised questions early in January 2008 about the established practice of paying REPS 2 and REPS 3 farmers at the beginning of each contract year. At that stage, some €6 million had already been paid to REPS 2 and REPS 3 farmers since 1 January 2008.

My officials have argued strongly with the Commission that the practice of paying at the start of the contract year is well established and one of which the Commission is well aware. My Department's position was outlined in considerable detail at a meeting with the Commission in Brussels on 25 January. When Commissioner Fischer Boel was in Dublin two weeks ago to attend the Annual General Meeting of the IFA, I took the opportunity to make the same points directly to her and I emphasised the seriousness with which I regarded the situation. I am continuing, along with my officials, to press for a quick resolution to the issue and high-level contacts are ongoing with the Commission. However, until the matter is clarified, my Department is not in a position to release any further payments under REPS 2 and REPS 3. Payments to REPS 4 farmers under contracts which commenced in 2007 are beginning to issue this week.