Question
Statement on what action is being taken to recover overpayments of aid to beef producers based on premium claims in 1996.
Answer
Mr. Terry Lewis: To ask the Minister of Agriculture, Fisheries and Food what action is being taken to recover overpayments of aid to beef producers based on premium claims in 1996. [2690] Dr. John Cunningham: Regulation (EC) No.1357/96, the subject of Explanatory Memorandum 7811/96 of 3 June 1996, was cleared by the Select Committee on European Legislation on 5 June 1996 and adopted by the Council of Ministers on 8 July 1996. It contained a range of special measures to assist beef producers and included provision for supplementary payments to producers pro rata to their entitlement to subsidies under the Beef Special Premium and Suckler Cow Premium schemes in the 1996 scheme years. Provisional payments could however be based on 1995 claims so as to provide urgent financial support. At the time of payment if was made clear to producers that adjustment would follow to reflect the position relating to 1996 subsidy claims. Beef producers who are being paid these subsidies on fewer animals in 1996 than in 1995 will be required to repay the supplement relating to the difference in numbers. Wherever possible, such overpayments will be deducted from balance payments due under the 1996 beef schemes. All monies recovered under this exercise will be re-distributed to those beef producers who qualified for subsidies on more animals in the 1996 scheme years than in 1995.