Michael Ring (Mayo, Fine Gael)
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Question 158: To ask the Minister for Agriculture, Fisheries and Food if he will remove the DED average requirement of the €6 million to special national reserve category for sheep farmers which would benefit hill farmers. [19022/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Category C of the 2007 National Reserve caters for sheep farmers for whom at least 40% of their Single Payment was derived from direct payments associated with sheep production (Ewe Premium/Rural Word Premium) during the reference period and where their existing Single Payment is less than €10,000.

This is a non-mandatory category. The EU Regulations provide that in allocating entitlements to successful applicants in the non-mandatory categories, the Member State must ensure that the allocation does not have the effect of increasing the value of any existing entitlements above the regional average value of entitlements. Similarly, the value of any new entitlements allocated to non-mandatory categories must not exceed the regional average. The Member State was allowed to determine what constituted the regional average.

At the commencement of the Single Payment Scheme a Single Payment Advisory Committee was established comprising representatives of the farming organisations, Teagasc and officials from my Department to assist in considering the most appropriate way of establishing the regional average value of entitlements. Having considered the Committee's views, it was decided that the regional average value of entitlements would be the average value of entitlements in the District Electoral Division (DED) associated with the applicant's herdnumber. This was considered to be a reasonable interpretation reflecting, as it did, the average value of payment entitlements and therefore the average farming activity in the DED concerned during the reference period.

My Department is seeking more flexibility for Member States in determining both the category of farmer who should benefit from the National Reserve and the most appropriate level of allocation to successful applicants. This matter will be pursued in the context of the Health Check of the CAP.