Emmet Stagg (Kildare North, Labour)
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Question 101: To ask the Minister for Agriculture, Fisheries and Food if he will lobby the European Commission to rescind the decision to pay REP scheme four retrospectively to participating farmers; and if he will make a statement on the matter. [19653/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The arrangements for REPS 4 are derived from a new Commission Regulation which reflects the Commission's objective of integrating and harmonising the operation of the various farm payment schemes — including the Single Payment Scheme, REPS and the Disadvantaged Areas Scheme. For REPS 4, this means that applications to join the Scheme must be submitted by 15 May each year. Payments will relate to the number of months in a year during which the farmer is in a REPS 4 contract, and they will be released in two phases of 75% and 25%.

My officials had intensive discussions about these new rules with the Commission. They argued that the previous arrangements had worked well since REPS was first introduced in 1994 and had contributed to the success of the scheme, with nearly 60,000 farmers participating in REPS 2 and REPS 3 by the end of 2006. The Commission were adamant, however, that the new Regulation must apply to REPS 4. The only thing they were prepared to concede was a transitional arrangement for farmers in REPS 2 finishing their contracts during 2008. As long as these farmers submitted an application for REPS by the closing date of 15 May — last Thursday — they can submit their farm plans later on and still receive payment this year. The Commission insisted however that the new Regulation must apply strictly to all other farmers joining REPS 4 this year, and to everyone joining the new Scheme from next year on.

The previous discussions with the Commission were exhaustive and I see no prospect of any change in the position. Although payments will now come at different times of the year from those that farmers are used to, no farmer will lose out on his or her payments in REPS 4. Nevertheless I am aware that this change is unwelcome to farmers. I believe the previous way of doing things was better, but we are constrained by the Regulations. Finally I want to reiterate that there is no change to the rules governing REPS 2 and REPS 3. For the remainder of their time in these Schemes, farmers will continue to be paid in full at an early stage in each year of their contracts.