Written answers

Thursday, 5 June 2014

Department of Agriculture, Food and the Marine

Single Payment Scheme Administration

Photo of Seán KyneSeán Kyne (Galway West, Fine Gael)
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85. To ask the Minister for Agriculture, Food and the Marine if his Department was made aware of problems with the online single payment form system in 2014, particularly where changes had to be made to maps; if his Department received many complaints prior to the closing date; and if he will ensure improvements are made regarding ease of use. [24026/14]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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There were no general issues regarding the mapping element of my Department’s online application system for the 2014 Single Payment Scheme. That said there were a small number of individuals who reported access difficulties. In all instances these difficulties transpired to be browser-related. In this regard callers to the dedicated Agfood.ie helpdesk, who reported such problems were advised to switch to the recommended browser.

It is important to highlight the fact that aside from the dedicated help line, online users also have access to the online user guide, which is a step by step guide to each stage of the process, including screenshots to assist the user.

The online system continues to be a great success, with a record 80,000 applications submitted under the 2014 Scheme. This represents an eleven-fold increase since the system was launched in 2007, each year bringing record numbers of online applications. Initially, farmers and their approved agents were attracted to iNet by the fact that it guaranteed immediate, verifiable receipt by my Department of their applications and, through the system of in-built validations, significantly reduced the numbers of errors that could be made, thereby ultimately leading to speedier payment. The introduction in 2012 of an on-line mapping element allowed farmers, or their agents, who needed to submit maps to the Department, to do so through iNet, thereby dispensing with the need to submit paper maps. While over 13,000 maps submitted online last year, this number increased to over 15,500 this year.

My Department remains committed to the continued ongoing development of iNet, to the mutual benefit of farmers and the efficient operation of payment systems.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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86. To ask the Minister for Agriculture, Food and the Marine if the EU Commission has indicated that it intends imposing a fine or penalty on Ireland arising out of map discrepancies on the single farm payment maps; the indicated size of the fine in question; when the Commission first indicated the imposition of a fine or penalty; the indicated amount of the fine or penalty; and if he will make a statement on the matter. [24068/14]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The Deputy will be aware of the value of the EU funded Direct Payment Schemes to Ireland. Each year farmers in Ireland benefit from funding of over €1.5 billion under Schemes such as the Single Farm Payment Scheme, the Disadvantaged Areas Scheme, the Agri-Environment Schemes, etc. This comprises the entire net income of many thousands of Irish farmers.

The European Commission has an obligation to ensure that Member States manage and use the EU funding granted to them in accordance with the very restrictive provisions governing the Schemes and general financial provisions. Under the Common Agricultural Policy, this is done by way of a Clearance of Accounts procedure. This is a formal process and both the Commission and Member States are obliged to adhere to the requirements laid down in the legislation. In general, the process involves audit missions to the Member State by Commission officials; follow-up correspondence between the two parties on the findings of the mission and the observations and remedial actions undertaken by the Member States. There is also a formal bi-lateral meeting between the two parties followed by further correspondence. At the end of this phase, the Commission issues its letter of findings; as indicated, this letter issued very recently. The Member State has the right to ask for the matter to be reviewed by the Conciliation Body. This body will review the case and seek written and oral observations from each party. It will make its recommendations and the Commission will consider these before arriving at its final definitive decision.

In the case of Ireland, the Clearance procedure is currently covering five financial years involving the 2008 to 2012 scheme-years. I can confirm that my Department has been informed of a potential flat rate financial correction that the EU Commission may impose on Ireland in respect of the period 2008 to 2012 covering EU direct aid for the period of some €9 billion. I can assure the Deputy that every effort is being made to ensure that Ireland’s case and the position of Irish farmers is strenuously argued during the process. I can also reassure the Deputy that every effort is being made to protect the interests of all Irish farmers during the process including the interest of that majority of farmers, who were fully compliant in the declarations they made on an annual basis under the Schemes. During the years 2002 to 2012, the Commission imposed financial corrections amounting to almost €5 billion on Member States. Ireland’s share of this total amounted to €25.6 million (or 0.5% of the total amount corrected – one of the lowest percentages among Member States). Under the EU Regulations, the Commission has to right to impose a flat-rate correction of 2%, 5%, 10% or greater depending of its assessment of the risk to the EU Fund involved – a 2% correction on the 2008 – 2012 scheme years would mean, according to the Commission’s figures, a loss of €182m in funding to Ireland. On the other hand, the level of the correction can be based on the assessed risk if the Member State can establish the risk and the Commission are satisfied with the calculations. In such circumstances, if the risk is dealt with by the Member State by collecting the debts arising from the over-payments, the amounts collected is taken into account by the Commission in its final assessment. This is the approach Ireland is following.

I am strongly of the view that a flat rate correction is not justified considering the work already carried out by my Department in order to accurately assess the calculated risk involved and the actions taken to eliminate that risk. A detailed case is being prepared for the EU Conciliation Body (which mediates on these corrections), which will argue strongly from both a legal and technical viewpoint that a flat rate correction is not justified for Ireland.

No final decision is expected until late in the year and in the meantime every effort will be made to keep any correction to an absolute minimum, recognising the vast amount of work which has been carried out to date by my Department to address land eligibility.

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