Martin Kenny (Sligo-Leitrim, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

15. To ask the Minister for Agriculture, Food and the Marine his views on whether, with the advent of digital mapping, that to penalise farmers for overclaims, which were not deemed to be overclaims in the past, by freezing their whole payment and not just the portion in question, is harsh at a time when many farmers are facing a cash crisis; and if he will make a statement on the matter. [37694/16]

Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Under the Terms and Conditions of the Direct Aid Schemes, which include the Basic Payment Scheme(BPS), farmers are obliged to declare only eligible land when making their annual applications, and are to exclude ineligible features such as roads, buildings, farmyards, dense scrub, etc. These claims are then recorded on the Department’s Land Parcel Identification System (LPIS). Given the importance of the LPIS database in underpinning direct aid payments worth in excess of €1.5 billion annually, my Department is obliged under EU Regulations to ensure its accuracy.

Consequently, all BPS and Areas of Natural Constraints (ANC) Scheme applications are subject to robust administrative checks prior to payment. The main element of the administrative check is an area assessment. This is achieved by using the LPIS which currently records some 1 million individual land parcels. Such eligibility checks are required to protect the annual drawdown of the EU funds and to avoid disallowances. Only valid applications under the BPS and ANC that fully comply with the requirements of the EU legislation are paid.

In relation to over-claims specifically, the procedure in place is for the application to be processed for payment using the area determined during the digitising process. Any deductions arising on foot of an over-claim at that stage are made at the time and the remainder of the payment due is made to the applicant. The applicants concerned are advised of the outcome and offered the opportunity to appeal. The Department updates its data in relation to issues such as possible over-claims on an ongoing basis to ensure the continued accuracy of its systems.

Payments under the 2016 Basic Payment Scheme commenced on 17th October, which is the earliest date allowed under the EU legislation. To date payments in excess of €792m have issued to over 120,000 applicants under the BPS. My Department is prioritising the processing of all outstanding cases and preparations are also now being finalised for the issuing of the balancing payment of the BPS from 1 December.