Jan O'Sullivan (Limerick East, Labour)
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Question 43: To ask the Minister for Agriculture, Fisheries and Food if she will facilitate farmers who wish to continue to have payments by her Department issue to them by cheque; and if she will make a statement on the matter. [7098/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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At present, farmers can choose to have their payments made by cheque or electronic funds transfer directly into their bank account and this situation will continue during the 2008 EU financial year which ends on 15 October. However, as and from the 2009 EU financial year commencing on 16th October 2008, payment by cheque will no longer be permitted under EU rules.

My Department is obliged to adhere to the requirements and controls set out by the EU Commission in administering EU funded schemes. A new requirement to make all payments under EU funded or co-funded schemes directly into bank accounts must be implemented in accordance with EU Council Regulation 1290/2005 which lays down the rules on the financing and management of the Common Agricultural Policy for the years 2007 to 2013. The detailed implementing rules for that Regulation, as set out in EU Commission Regulation 885/2006, requires that all EU paying agencies, including my Department, must adopt procedures to ensure that payments are made only to bank accounts with effect from the 2009 financial year.

My Department is in contact with farmers to facilitate the smooth switchover of payments to bank accounts. I have recently met with An Post and I am continuing to explore all avenues that will minimise disruption to farmers.