Finian McGrath (Dublin North Central, Independent)
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Question 333: To ask the Minister for Agriculture, Fisheries and Food his views on an alternative for the payment to farmers of single farm payments who do not have bank accounts and deal solely with credit unions or An Post and where the particular branches are not part of the electronic banking system. [20601/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Farmers can continue 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. As and from the 2009 EU financial year which commences on 16th October 2008, my Department is obliged, as the designated paying agency for EU funds, to make all payments under EU funded or co-funded schemes directly into bank accounts.

My Department will issue payments to any bank, building society or credit union account which has an electronic funds transfers arrangement with the Bank Clearing System. All banks and building societies operate such an arrangement. I understand that An Post/POSTBANK has recently launched a new current account with electronic fund transfer capability and that the new facility is being offered throughout the national post office network. I also understand that a limited number of credit unions are already participating in the Bank Clearing System and that this number will increase over time.

Farmers have a number of months to notify my Department of an account into which electronic payments should be made and I will be urging them to make the necessary arrangements as soon as possible in order to avoid disruption to their payments.