Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 181: To ask the Minister for Agriculture, Fisheries and Food the reason farmers will have to open a bank account to receive their single farm payment; the provision which is being made for farmers who are not serviced by a bank or post office due to the downsizing of their networks; and if she will make a statement on the matter. [15839/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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The requirement to make all payments under EU funded or co-funded schemes directly into bank accounts arises under EU Council Regulation (EC) No 1290/2005 which lays down the rules on the financing and management of the Common Agricultural Policy for the period 2007 to 2013. The detailed implementing rules as set out in EU Commission Regulation (EC) 885/2006, require 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 which begins on 16 October 2008. As the designated paying agency for EU funds, my Department is obliged to adhere to these rules. Farmers can choose to have their payments made by cheque or electronic funds transfer directly into their bank account for the remainder of the 2008 EU financial year which ends on 15 October.

My Department notified the new requirement to farmers on a number of occasions over the past year or so and will be writing to farmers again this week. A large number of farmers have already 'signed up' for electronic funds transfer. Farmers who have not yet done so still have several months in which to open a bank account and to notify my Department of the details. However, I would urge all farmers to make the necessary arrangements as soon as possible.

My officials have briefed the banks on the new requirement. I met with An Post which intends to facilitate the electronic transfer of funds through a system of post bank accounts in the near future. I understand that a limited number of Credit Unions are also in a position to handle direct payment to customer accounts and that this number will increase over time. I will continue to explore all options to minimise disruption to payments and farmers may, of course, contact my Department with any concerns that they may have.

Tom Hayes (Tipperary South, Fine Gael)
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Question 182: To ask the Minister for Agriculture, Fisheries and Food the reason for the difference in the level of payment each month to a person (details supplied) in County Tipperary under the farm retirement scheme. [15898/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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The person named received his first Early Retirement pension payment in March 2007. As no notice of tax credits was received, tax was assessed on an emergency basis. In January 2008 a notice of tax credits was received and applied. The level of net monthly pension payment has remained constant since this time.