Written answers

Tuesday, 25 September 2018

Department of Agriculture, Food and the Marine

Agriculture Scheme Penalties

Photo of Tom NevilleTom Neville (Limerick County, Fine Gael)
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394. To ask the Minister for Agriculture, Food and the Marine if interest will be waived on an instalment repayment plan in respect of a person (details supplied) in County Kerry; and if he will make a statement on the matter. [38573/18]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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The Super levy Instalment scheme was introduced in 2015. This scheme was offered by the EU Commission to Member States to implement on a voluntary basis to allow producers who had incurred super levy debt to spread the cost over three years (2015–2017) interest free.

At the end of the milk quota regime in April 2015 Ireland exceeded its quota by 4.4%, resulting in a super levy bill of €71 million for 6,400 Irish farmers. Each Member State was obliged to settle the liability in full in 2015 with the EU Commission and could then re-coup the money from its farmers as per the scheme. My Department chose to implement the scheme on the basis that it would minimise the burden on the sector during a period of planned expansion here as well as helping with the immediate cash flow difficulties for farmers faced with such a bill.

My Department introduced the scheme of phased recoupment from farmers who had the option of joining the scheme and spreading their repayment over three years. This repayment schedule took the form of a 33% lump sum in 2015 and the balance to be spread over five equal instalments in 2016 and 2017 over the peak production period of May to September. Ireland was one of the few Member States with a super levy bill to introduce the scheme.

This scheme was financed from Exchequer funds and so my Department is responsible for ensuring that the funds advanced to the Commission on behalf of farmers are recouped on behalf of the taxpayer.

The person in question incurred a superlevy fine because they supplied almost double their assigned quota in the 2014/15 quota year. They are subject to the same conditions regarding interest which apply to all participants of the scheme and they are strongly encouraged to engage with the relevant officials in my Department to resolve the issue.

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