Éamon Ó Cuív (Galway West, Fianna Fail)
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529. To ask the Minister for Agriculture, Food and the Marine the progress made in relation to getting the fine or penalty being imposed on Ireland for issues arising out of the land parcel identification scheme review 2008-2013 reduced; when it is hoped this matter will be finalised; and if he will make a statement on the matter. [31581/15]

Simon Coveney (Cork South Central, Fine Gael)
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The Deputy will be aware that t he EU Commission in its letter dated 14 May 2014, proposed a 2% flat rate financial correction for Ireland of €181.5 million arising from its Conformity Clearance audits in 2009, 2010 and 2012. The payments audited covered the period from 2008 to 2012 during which over €9 billion was paid to farmers in Ireland under the Direct Payment Schemes. I have always been opposed to the imposition of flat-rate penalties and particularly so in this case. I strongly refuted the application of this proposed correction as disproportionate to the true level of risk involved and my Department accordingly sought a hearing with the Conciliation Body. Further to the Conciliation hearing in December 2014 the report of the Conciliation Body concluded that conciliation seemed within reach and that the Commission and my Department should continue discussing the matter with a view to an agreed settlement. On foot of this advice my Department maintained regular contact with the Commission, and carried out additional requested verification work, with a view to bringing the matter to a conclusion.

The Commission Audit services carried out a verification visit to Ireland in May 2015 and further to same advised my Department in July of their intention to exclude a total of approximately €67.6 million from EUfunding of various agricultural Direct Payment schemes for the seven year period from 2008 to 2014. This represents 0.7% of the €12 billion in EU funding for these schemes in this seven year period.  This proposal means that the complete period of the Single Payment Scheme will have the Clearance of Accounts procedure concluded.

The proposal consists of two elements - €64 million exclusion for the period 2008 – 2012 and €3.6 million for the period 2013 – 2014. It must be noted that there is a decrease of almost 86% in the average annual level of correction for the 2013 – 2014 period relative to the correction for the 2008 – 2014 period. This clearly illustrates the very positive impact of the 2013 LPIS review carried out by my Department.

As can be seen, these outcomes have come further to a prolonged process of intensive communication and effort by my Department and the significant reduction from the original proposal of €181 million reflects on same and the very detailed case presented to the Commission in strong opposition to the original proposal, including the examination of over 900,000 land parcels throughout the country.

It is noted that the proposed correction of €67.6 million relates mainly to Commission findings in relation to the exclusion of ineligible lands from payments to farmers under EU funded schemes. I would, therefore, highlight that there is an onus on all farmers to ensure that the area of land declared by them as eligible for payment under the Direct Payment Schemes is accurate. I would urge them to ensure that all ineligible areas and land that they are no longer farming is excluded from the areas claimed for payment under the Direct Payment Schemes.