Michael Creed (Cork North West, Fine Gael)
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Question 204: To ask the Minister for Agriculture, Fisheries and Food the financial value of the deductions (details supplied) taken from the single farm payment since 2005 to date on a county basis; and if he will make a statement on the matter. [37625/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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In the time available it has not been possible to assemble the information requested on a county basis. However at National level the position is as follows.

Ireland's National Ceiling for 2005 was €1,260 million of which 3% (€37.8m) had been provisionally set aside to fund the National Reserve. The cost of funding successful applicants under Force Majeure and New Entrants during the reference period has meant that the sum of individual entitlements has exceeded our National ceiling requiring a 1.18% linear reduction of all entitlements. It was agreed that any linear reduction would be accommodated with the 3% already deducted for the National Reserve. In effect therefore the cost of funding Force Majeure and new entrants during the reference period amounted to some €15.3m while the sum of money available for the National Reserve was €22.5m.

Some €6.5m also accrued to the National Reserve in 2005 representing the value of entitlements that were allocated to farmers but not activated (claimed) in 2005. In addition some €3.5m accrued to the National Reserve in 2007 representing the value of entitlements not used in the three-year period 2005, 2006 and 2007. Entitlements allocated from the National Reserve must be used in full each year otherwise they are immediately reverted to the National Reserve. Some €1.7m accrued to the National Reserve in 2005, 2006 and 2007 under this usage rule giving a total value of €5.2m unused entitlements.

The EU regulations allow Member States on a discretionary basis to apply a claw-back on the sale of entitlements with and without land. Ireland applied such a clawback in respect of entitlements sold in 2006 and 2007. Some €599,461 accrued to the National Reserve from this arrangement. Payment Entitlements may be sold with or without land but can only be sold without land once 80% have been used in one calendar year or, if 80% have not been used in one calendar year the transferor has the option of ceding those entitlements that were not used in 2005 to the National Reserve. Some €134,286 accrued to the National Reserve in 2006, 2007 and 2008 under this arrangement.

While it is obligatory to deduct Modulation from all Single Payments, the deductions in respect of the first €5,000 of each payment are refundable. The EU Regulations governing the Single Payment Scheme provided for an increase in the rate of Modulation deduction, from 3% in 2005, to 4% in 2006 and 5% in 2007. The total gross value of deductions in respect of Modulation during these years was as follows: 2005: €36.9 million; 2006: €52.1 million; 2007: €65.3 million. The amounts refunded during the same period are as follows: 2005: €14.5 million; €19.4 million; 2007 €24.2 million.