Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 157: To ask the Minister for Agriculture, Fisheries and Food when her and her Department's attention was drawn to the problems in regard to the payments of REP schemes two and three; and if she will make a statement on the matter. [7375/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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In early January, in the course of discussions about the payment arrangements for REPS 4, the European Commission unexpectedly raised questions about the long-established practice of paying farmers in REPS 2 and REPS 3 in full at the start of each contract year. I met Commissioner Fischer Boel in Dublin to discuss this matter when she attended the Annual General Meeting of the IFA in January, and I had further discussions with her in Brussels on Monday. I am very glad to say that I obtained the Commissioner's agreement that Ireland can continue with the established practice until the expiry of REPS 2 and REPS 3 contracts. I am very grateful to Commissioner Fischer Boel for her personal intervention to resolve an extremely difficult situation.

I immediately directed my officials to take steps to release some €37 million in REPS 2 and REPS 3 payments which had been on hold since early January, and payments for valid outstanding claims are now beginning to issue.

Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 158: To ask the Minister for Agriculture, Fisheries and Food the steps she is taking to address the problem in relation to the payment of REP scheme two, three and four; when she anticipates farmers will be paid; and if she will make a statement on the matter. [7377/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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I had further discussions with Commissioner Fischer Boel in Brussels on Monday last about the difficulties with the European Commission in relation to the established practice of paying REPS 2 and REPS 3 participants at the beginning of each contract year. I am very glad to say that I obtained the Commissioner's agreement that Ireland can continue to receive REPS payment claims and make payments as has been done in the past, until the expiry of REPS 2 and REPS 3 contracts.

I have directed my officials to take immediate steps to release REPS 2 and REPS 3 payments which had been on hold since early January and payments for valid outstanding claims are now beginning to issue.

Payments to REPS 4 farmers under contracts which commenced in 2007 are now issuing. My officials are in discussion with the European Commission on the payment arrangement to apply to REPS 4 contracts commencing in 2008 and I expect the matter to be clarified shortly.