Directorate-general for agriculture and rural development

19.9.IRELAND

Enquiry No: IR/2008/006/IE

Legislation: R. 1290/2005 (art 32); R. 885/2006

Dates of mission: 29-31/10/2008

Observation letter: 28/05/2009 - Ares(2009)112162

Replies of the Member State: FD/Commission audits/2008/005 dated 28/7/2009

Bilateral meeting: 28 July 2009

Minutes of the bilateral meeting: 6/12/2010 – Ares(2010)904742

Reply to the minutes of bilateral: Letters dated 14/02/2011 and 3/06/2011

Conciliation letter: 13 December 2011 – Ares(2011)1349571

Conciliation reference: N/A

Conciliation Body's opinion: N/A

Final letter: N/A

19.9.1.Main findings

The Irish authorities did not report interest in the Annex III table of financial years 2006-2009 on debts in those sectors where the scheme regulations do not specifically provide for interest-calculation and on SPS debts before 2007. Interest calculation and its reporting in the Annex III table is required by Guideline No 1 since financial year 2006. This requirement was validated by the European Court of Justice in its judgement in the cases T-274/08 and T-275/08. Not reporting interest on the outstanding balance in the Annex III table is contrary to Article 32(1) of Regulation (EC) No 1290/2005 and constitutes a loss for the EU budget.

A financial correction for the amount of interests on the cases cleared under Article 32(5) of Council Regulation (EC) No 1290/2005 of 21 June 2005 (the "50/50 rule") regarding financial years 2006-2009 shall therefore be applied.

In addition, the Certification Body identified among its minor findings for financial year 2007 (ref. P123{d}) a debt that was known by the paying agency DAFF for 901 days before the debtors were notified. A financial correction on the basis of Article 32(8)(a) of Regulation (EC) No 1290/2005, amounting to EUR 2,062.00, was proposed.

Finally, delays in the recovery procedure were also noted in the case ERS/11572B/0034 where it took more than two years and a half to issue a first reminder, when no voluntary payment was received following the recovery order. A financial correction on the basis of Article 32(8)(a) of Regulation (EC) No 1290/2005, amounting to EUR 20,562.22, was also proposed.

19.9.2.Member State’s arguments

Regarding the issue of interest calculation, the Irish authorities provided the estimated amount of interests (by applying an interest rate of 3%, as provided for by Statutory Instrument No. 13 of 2006) on the outstanding balances for the financial years 2006, 2007, 2008 and 2009 and confirmed that interests now apply to all new overpayments. The amount of interests on the cases cleared under the 50/50 rule regarding financial years 2006-2009 which shall be subject to the financial correction amounts 7,656.86 EUR.

The Irish authorities also acknowledged that the two individual debts for which delays in the recovery procedures were noticed were not pursued with the necessary diligence and in accordance with national or EU requirements.

19.9.3.Position of the Commission before conciliation

As a result, a financial correction of 30,281.08 EUR is proposed as follows:

MS	Measure	Financial year	Reason	Type	Currency	Amount	Deductions	Financial impact
IE	Irregularities -debts management	2006	Non reporting of interest in the Annex III tables	One-off	EUR	- 3,606.20	0	- 3,606.20
IE		2007		One-off	EUR	- 1,048.99	0	- 1,048.99
IE		2008		One-off	EUR	- 2,109.23	0	- 2,109.23
IE		2009		One-off	EUR	- 892.44	0	- 892.44
IE		N/A	Negligence in the recovery procedure	One-off	EUR	- 2,062.00	0	- 2,062.00
IE		N/A		One-off	EUR	- 20,562.22	0	- 20,562.22
IE	Total				EUR	- 30,281.08	0	- 30,281.08

19.9.4.Opinion of the Conciliation Body – N/A

19.9.5.Final Commission position – N/A