Unscrupulous farmers claim they keep animals on other people's land

BBC Northern Ireland's rural affairs correspondent, Martin Cassidy, said on Wednesday that an investigation, codenamed Paper Acres, was close to cracking a scam which pointed to fraud and conspiracy.

It involves using false claims to get cash payouts. The police investigation is currently focusing on the most blatant cases.

Claims from hundreds of farmers are being examined. In one case alone, the fraud is believed to amount to more than �75,000.

Farmers are only allowed to claim subsidy for a limited number of animals however, some farmers are said to be "inventing" extra acres.

I have not been able to see wholesale fraud and I am not aware of a police investigation into wholesale fraud John Gilliland Ulster Farmers' Union

They tell the authorities that they keep animals on other people's land. This is untrue. In practice they never use the land and thus, the term "paper acres".

Agriculture minister Ian Pearson said: "The fact that this has come to light indicates that there are systems in place and that work is being done to make sure that if people defraud the system they are found out and will be brought to justice.

"But I cannot comment on a police investigation."

Ulster Farmers' Union President John Gilliland said: "If there is any legal activity, I support the authorities to investigate and take it further."

However he rejected suggestions that this was "wholesale fraud".

Claims rejected

"To date they have one investigation of a particular individual. I have not been able to see wholesale fraud and I am not aware of a police investigation into wholesale fraud," Mr Gilliland said.

"If allegations towards the industry are saying that there is wholesale fraud out there, I am saying that there is not wholesale fraud. The PSNI is not involved in a wholesale investigation.

"If there was an overall problem in the industry, could someone please tell me why total income in agriculture in NI is lowest of all regions in UK and lowest of everywhere in Europe?

"If there was significant fraud, especially involving cheques from government, that would come in income figures and that is not there at this present time."

Mr Gilliland said it was clear to the majority of law abiding farmers that the system must catch anyone who abused it.