Paul Connaughton Snr (Galway East, Fine Gael)
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Question 282: To ask the Minister for Agriculture, Fisheries and Food if her attention has been drawn to the fact that there are some elderly farmers who do not have bank facilities which would enable them to receive the single farm payment and other such payments direct from her Department into such bank accounts and that such farmers are unable to sign the direct credit authorisation form as a consequence of this; if credit unions can accept such money transferred; if in exceptional circumstances such cheques can be posted out in the traditional manner; and if she will make a statement on the matter. [9778/08]

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.

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 must adopt procedures to ensure that payments are made only to bank accounts with effect from the 2009 financial year.

As the designated paying agency for EU funds, my Department is obliged to adhere to these arrangements. My Department is in contact with farmers to facilitate the smooth switch over of payments to bank accounts. I understand that about 14 Credit Unions are in a position to handle direct payment to customer accounts and it is likely that this number will increase over time. I recently met with An Post which intends to facilitate the electronic transfer of funds through a system of post bank accounts. My officials have also briefed the banks on the new requirement and I will continue to explore all possible solutions to minimise disruption to farmers.