Directorate-general for agriculture and rural development

17.10.Ireland

Measure 112 Setting up of young farmers; Measure 113 – Early retirement;

Enquiry No: RD1/2009/809/IE

Legislation: Regulations (EC) No 1698/2005, 1974/2006, 1975/2005

Date of mission: 8. – 12.06.2009

Observation letter: 16.09.2009

Reply of the Member State: 30.11.2009

Bilateral meeting: 19.01.2010

Minutes of the bilateral meeting: 28.01.2010

Reply to minutes of bilateral: 29.03.2010

Conciliation letter: 30.06.2011, 28.10.2011

Reply Member State: 08.08.2011

Request for conciliation: N/A

Conciliation reference: N/A

Conciliation Body's opinion: N/A

Final letter: N/A

17.10.1.Main findings

Early retirement - Declarations made by the agricultural advisors

In Ireland agricultural advisors were required to provide a number of declarations/certificates in relation to an application for Early Retirement. With regard to the transferor, the agricultural advisor provided a declaration with regard to one of the eligibility criteria: the transferor has practiced farming for the 10 years preceding the transfer. With regard to the transferee the agricultural advisor declared that the transferee has at least a specific number of years experience in farming.

The agricultural advisors do not provide any information on the checks carried out by them or any documentation which supports the declaration which they have issued. The Irish authorities rely to a large extent on these declarations and do not (on a structural basis) verify the correctness of the declarations issued. (Art. 68 of Regulation (EC) 817/2004; Art. 26 (2) (a) of Regulation (EC) 1975/2006).

Young Farmers' Installation Scheme – Measurability of business plans

In a number of cases the Commission noted that objectives as indicated in the business plan were not always measurable and therefore the authorities will not be able to verify compliance with the business plan. The Commission services indicate that a proper decision if the business plan is correctly implemented and/or if the aid has to be recovered can't be taken on the basis of non measurable actions. (Art.13 (3) of Regulation (EC) 1974/2006)

17.10.2.Position of the Commission before conciliation

These weaknesses can be qualified as weaknesses in key controls.

Early retirement: The Irish authorities examined ex post all files with regard to the declarations concerning the two eligibility criteria. Eventually for 4 cases there was insufficient evidence to substantiate that they were farming for the full ten years prior to joining the Early Retirement Scheme. The expenditure in question (-92 344,50 EUR) has to be excluded from an EU financing.

Young Farmers: The Commission proposes the application of a flat rate correction of 5%. The financial correction amounts to: EUR -304.616,25.

17.10.3.Member State's arguments

Early retirement: Corrective action has been taken in relation to the 4 cases identified. Payment of the pension has ceased and recoupment sought in all of the cases. An appeal has been lodged in 2 cases with the Agriculture Appeals Office.

Young Farmers: the Irish authorities consider that the flat-rate disallowance of 5% is excessive.

17.10.4.Opinion of the Conciliation Body

N/A

17.10.5.Final Commission position

The total financial correction for both measures amounts to
- 396 960,75 EUR (amount to be recovered from the Member State).

PA	Year	Budget	Budget line	Correction type		Curr.	Fin. Corr.
IE01	2008	EAFRD	5040501112	Flat rate	5%	EUR	- 115 125,00
IE01	2009	EAFRD	5040501112	Flat rate	5%	EUR	- 134 055,00
IE01	2010	EAFRD	5040501112	Flat rate	5%	EUR	- 55 436,25
IE01	2007	EAFRD	5040501113	One-off		EUR	- 10 122,22
IE01	2008	EAFRD	5040501113	One-off		EUR	- 31 262,80
IE01	2009	EAFRD	5040501113	One-off		EUR	- 20 795,07
IE01	2010	EAFRD	5040501113	One-off		EUR	- 19 051,20
IE01	2011	EAFRD	5040501113	One-off		EUR	- 11 113,21
IE01	TOTAL					EUR	- 396 960,75