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Annual Report of the Ombudsman 2004

Chapter 3 - Department of Agriculture and Food - Farm Improvement Grant Refused

Department of Agriculture and Food

Farm Improvement Grant Refused

A farmer made a complaint to me that he had been unfairly refused a Farm Improvement Grant of €19,000 which had previously been approved by the Department of Agriculture and Food. This refusal, he claimed, had seriously affected his business and he considered that he should be paid the grant and should also be compensated for the potential earnings he would have gained had the grant been paid in the first instance.

In response to my enquiries, the Department told me that it had initially approved the grant on the basis of the information submitted but further information had come to light which led it to believe that a grant should not, in fact, be paid and it considered that it had a legitimate basis for reversing its initial approval. While accepting the points made by the Department at face value I also asked for the Department’s files. From these files it was clear that the Department initially had the information which would have allowed it to refuse the application but because of the interpretation made by the Department in considering the application, it was approved. Having obtained the approval, the farmer began work on the project. It was only at a later stage that the Department realised that he did not meet the criteria of the scheme and it withdrew its approval.

The withdrawal of the grant approval understandably came as a considerable shock to the farmer as he had been approved on the basis of the information he had submitted. The Department, for its part, in considering the complaint argued that while a legitimate expectation may possibly have been created by contacts between the farmer and officials of the Department, the simple fact was that the farmer was ineligible on closer scrutiny of his application.

It was clear to me that a legitimate expectation had been created which had led the applicant to carry out works in the belief that a grant was being paid. In view of the circumstances of the case I concluded that payment of the grant of €19,000 was warranted. However, I was not persuaded that there was a basis to offer additional compensation along with the grant.

The Department accepted my suggestion and the complainant was paid his grant.

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