Paul Kehoe (Wexford, Fine Gael)
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709. To ask the Minister for Agriculture, Food and the Marine if there is a risk of clawback on grants or payments under TAMS drawn down in the last two years if a partnership or sole trader is converted to a limited company (details supplied); and if he will make a statement on the matter. [30316/18]

Michael Creed (Cork North West, Fine Gael)
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For the purposes of the TAMS Schemes where a registered farm partnership is dissolved after payment of a TAMS grant, the former partner(s) that has control of the land on which the investment is located must give an undertaking to use that investment for its intended purpose for a minimum of 5 years from the date of issue of the final payment in respect of the investments grant-aided.  

The dissolution of a partnership can potentially result in the following:

- The reduction of payment;

- The reduction of investment ceilings;

- The recoupment of payments made;

- Adjustment of investment balances for ex-partners.

- Force Majeure will be taken into consideration before any recoupment/reduction takes place.

Where a partnership dissolves in any period between the submission of an application and up to five years after the date of final payment, notification of the dissolution must be sent to TAMS II section, Johnstown Castle Estate, Wexford, within four working weeks. Each case will be examined on its own merits.

There are no issues if a sole applicant who applied as an individual subsequently forms a company as the grant rate and ceiling are not affected.

Where partnerships are dissolved and a company is formed there will potentially be a recoupment of grant aid if the relevant investment ceiling was over €80,000. If a young farmer was involved in the partnership there will also be a recoupment of the difference between the 40% and 60% grant rate.