Éamon Ó Cuív (Galway West, Fianna Fail)
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475. To ask the Minister for Agriculture, Food and the Marine the schemes that could have had an advance payment to beneficiaries of up to 50% of funding as part of their provisions if assistance as provided for in Article 45(4) had been included in the RDP; the reason this was not provided; and if he will make a statement on the matter. [34479/14]

Simon Coveney (Cork South Central, Fine Gael)
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Article 45(4) of the Rural Development regulation states that: “Beneficiaries of investment related support may request the payment of an advance of up to 50% of the public aid related to the investment from the competent paying agencies if that option is included in the rural development programme.”

The provision applies to investment related support under Article 17 of the Rural Development regulation. This includes the Targeted Agricultural Modernisation Scheme II (TAMS II), the Bioenergy scheme, and possibly the GLAS Traditional Farm Buildings Scheme. This option is currently not provided for in Ireland’s draft Rural Development Programme (RDP) 2014 -2020.

Under TAMS, entitlement to payment of the grant only arises when the investment item is purchased and full compliance with the provisions of the Scheme has been verified.Payment of an advance prior to that date would probably require the provision of a financial security by a farmer to ensure recoupment of the advance in case the item was not purchased.  This would not be a feasible option.

Historically the Department has not issued advanced payments to beneficiaries for on farm capital investment schemes, either for EU or nationally funded capital investment schemes. Allowing for this option would result in an increase in administrative and control requirements. Nevertheless it is intended to keep this possibility under review as the new Programme is rolled out and in the light of practical experience in operating the new measures.