Ruairi Quinn (Dublin South East, Labour)
Link to this: Individually | In context

Question 110: To ask the Minister for Agriculture, Fisheries and Food if he will ensure farmers will continue to have payments by his Department issue to them by cheque should they so wish; and if he will make a statement on the matter. [19645/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

Farmers can choose to have payments made to them by cheque or electronic funds transfer directly into their bank account during the remainder of the 2008 EU financial year which ends on 15 October. However, as and from the 2009 EU financial year which commences on 16th October 2008, payment by cheque will no longer be permitted under EU rules on the financing and management of the Common Agricultural Policy. From that date, my Department is required to make payments under EU funded or co-funded schemes directly into the bank accounts of the beneficiaries. As the designated paying agency for EU funds, my Department is obliged to implement this new requirement.

My Department has notified farmers of the new requirement on a number of occasions over the past year and did so again recently. A very large number of farmers have now 'signed up' for electronic funds transfer. Farmers who have not yet done so still have a number of months in which either to open a bank account or to notify my Department of the details of existing bank accounts. I will be urging all farmers to make the necessary arrangements as soon as possible so as to avoid disruption to their payments.

My officials have briefed the banks on the new requirement and have also met with An Post/Postbank which has recently launched a new current account which will facilitate the electronic transfer of funds and which can be opened and operated through the post office network. My Department will also arrange payments to accounts in any Credit Union which has the facility to process electronic transfers. I will explore all possible options to facilitate the transition to payments by electronic funds transfer and farmers may, of course, contact my Department with any concerns that they may have.