John Cregan (Limerick West, Fianna Fail)
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Question 473: To ask the Minister for Agriculture, Fisheries and Food if he will confirm that the calculation of payments for the lost crops compensation scheme is 80% of the financial loss minus 50%, therefore 40% made payable to the applicant or 50% of 40%, therefore 20% payable plus a sliding scale; and when he expects payments to issue. [25574/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Following a preliminary assessment by my officials of the crop losses caused by the severe frost in January 2010, I announced, on 3 February 2010, the introduction of a limited scheme of financial assistance for certain potato and vegetable growers who could demonstrate that they had suffered significant losses of their produce due to the severe frost. As provided under EU Commission Regulation (EC) No. 1857/2006 on State Aid rules, the maximum aid payable to growers must not exceed 80% and 90% in less favoured areas. I have decided to apply the 80% level of assistance across the country.

In addition, a further provision of the same Regulation requires that aid offered must be reduced by 50% with effect from 1 January 2010, unless farmers have taken out crop insurance. Therefore, for the vast majority of cases under the Frost Damage Scheme, a 40% aid level will apply. Furthermore, as the level of claims submitted to my Department under the Scheme is so substantial, I have been obliged to apply a sliding scale reduction to the payments. The rate of the sliding scale is in the process of being finalised. Payments will issue shortly to those growers whose claims have been fully processed and approved for payment.