Michael Creed (Cork North West, Fine Gael)
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Question 76: To ask the Minister for Agriculture, Fisheries and Food the position regarding moneys clawed back through penalties in the single farm payment regime; if these funds go into a national reserve; and if he will make a statement on the matter. [10096/11]

Simon Coveney (Cork South Central, Fine Gael)
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Under EU Regulations, amounts arising from reductions and exclusions from payment as a result of non-compliance with the cross-compliance regime shall be credited to the European Agricultural Guarantee Fund (EAGF) and Member States may retain 25% of those amounts. The amounts retained are accounted for in the annual EU clearance of accounts decision and are shown as Appropriations in Aid in my Department's Vote. They are surrendered to the Exchequer through the vote on an annual basis and are not re-allocated in any way. Reductions and exclusions applied as a result of land eligibility issues are simply not charged to the EAGF.

The National Reserve is replenished only by the value of entitlements that are not used by farmers over a two year period. Entitlements must be used at least once in every two year period.