13 January 2009 - Gildernew announces review of National Reserve Subsidies cases

The review will not include any other categories or those applications where the applicant did not request the use of the Alternative Methodology.

Outlining her decision, the minister explained: “My Department rejected a number of National Reserve, Investor Category applications on the basis that these had not demonstrated that force majeure/exceptional circumstances affected their ability to claim subsidy in 2004.

“As this factor was not specifically mentioned in my Department’s National Reserve guidance booklet, I have set up a review of these cases against the criteria as described in the booklet.

“If in 2005, a farmer applied for an award under the Investor category and requested the use of the Alternative Methodology the case may now be reviewed. However, farmers should note that no new evidence will be accepted as part of this review.

“In light of this, I have asked my officials to review those cases where the applicant has already submitted a Review of Decisions (Appeal) Stage 1 or 2 application against the decision relating to their Alternative Methodology application. Those farmers, who applied to the National Reserve under the Investor Alternative Methodology and did not submit a Review of Decisions application but would now like the Department to review their case, should write to the Department before 27 February 2009.”

The letter must be headed “Alternative Investor Review” and include your Business ID and business name. It should be sent to Orchard House, 40 Foyle Street, BT48 6AT.

Where key supporting information, such as an investment plan or evidence of financial provision for all aspects of the investment, was not originally provided with the application there will be no scope for an award to be made under a review. In addition, the high BSPS scaleback in 2004 does not qualify applicants for an award.

Notes to Editors:

1. Anyone seeking a review should write to the Department and label their letter - “Alternative Investor Review”, including your Business ID and business name, to: Single Farm Payment Section, Orchard House 40 Foyle Street BT48 6AT.
2. Under EU rules the Department is required to set up a National Reserve under the Single Farm payment scheme.
3. The National Reserve was to provide additional Reference Amounts to those farmers who found themselves in one of the special situations set out by the European Commission.
4. One special situation was for farmers who purchased land (or leased land for six years or longer) between 1 January 2000 and 15 May 2004 or made investments in their productions capacity between 1 January 2000 and 15 May 2004. This became known as the “Investor” category.
5. Under the Investor category, applicants had a choice of two methodologies, which they could choose to have their award based on. The first was the Default Methodology (the net difference between the applicant’s 2004 subsidy receipts and the average receipts of the reference period 2000 to 2002). The second was the Alternative Methodology (applicants had to demonstrate the number of CAP subsidy units that could be supported by their investment).
6. The National Farmers Union made approaches to the Rural Payments Agency in England and the Welsh Government challenging the automatic rejection of cases under the Alternative Methodology where 2004 subsidy claims had not been affected by force majeure/exceptional circumstances as this had not been published in the National Reserve guidance booklet.
7. The Department in agreement with the other UK Devolved Administrations has decided to review those National Reserve applications where the applicant requested the Alternative Methodology. All cases reviewed will be assessed against the criteria set out in the National Reserve guidance booklet.
8. The Department will only review cases where the applicant applied under the Investor category and requested the use of the Alternative Methodology. The review will be based on the evidence submitted at the time of application. Applicants should have submitted all relevant evidence at the time of their application. After receiving a revised decision, should an applicant wish to use the Department’s Review of Decisions (Appeal) procedures, they will not be able to provide any additional evidence. Any further reviews will also be based on the evidence that has already been submitted to the Department.
9. Applications will be reviewed against the criteria set out the Department’s guidance booklet CAP Reform Part 7: National Reserve.
10. All media enquiries to DARD Press Office, Tel: 028 9052 4619. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.