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Farmers face more EU cash delays | Farmers face more EU cash delays |
(10 minutes later) | |
Some farmers face further delays in getting their share of EU cash, the environment secretary has confirmed. | Some farmers face further delays in getting their share of EU cash, the environment secretary has confirmed. |
David Miliband told MPs not all farmers were guaranteed to get the full 2006 payment by the target date of next June but partial payments would be made. | David Miliband told MPs not all farmers were guaranteed to get the full 2006 payment by the target date of next June but partial payments would be made. |
Delays to 2005 single-payment scheme subsidies have meant many farmers have had to borrow to make up the shortfall. | |
The government has been criticised by the Conservatives and farmers' leaders for failing to make payments on time. | |
Despair and bankruptcy | Despair and bankruptcy |
The government's Rural Payments Agency (RPA) allocates about £1.5bn under the EU's single farm payment scheme. | |
The new system calculates a single annual subsidy for each farmer for looking after their land, rather than a series of payments for producing food. | |
But many farmers claim the long delays in payouts have driven them to despair and even bankruptcy. | But many farmers claim the long delays in payouts have driven them to despair and even bankruptcy. |
Mr Miliband admitted the scheme and its administration had caused distress to many farmers and that the delays to the 2005 scheme had inevitably had an impact on the 2006 timetable. | Mr Miliband admitted the scheme and its administration had caused distress to many farmers and that the delays to the 2005 scheme had inevitably had an impact on the 2006 timetable. |
Whatever faults the previous chief executive must have, it is quite clear that no single person could be responsible for the catalogue of incompetence James PaiceShadow agriculture minister | Whatever faults the previous chief executive must have, it is quite clear that no single person could be responsible for the catalogue of incompetence James PaiceShadow agriculture minister |
He said the latest estimate for this year's payments was that 99.2% had been paid out, more than 110,000 farmers had received the full payment and a further 4,756 had received a partial payment. | He said the latest estimate for this year's payments was that 99.2% had been paid out, more than 110,000 farmers had received the full payment and a further 4,756 had received a partial payment. |
But Mr Miliband said the only way to put things right was to improve management and confidence - something he admitted would not "happen overnight". | But Mr Miliband said the only way to put things right was to improve management and confidence - something he admitted would not "happen overnight". |
The Rural Payments Agency's former chief executive was removed from his post in March. | The Rural Payments Agency's former chief executive was removed from his post in March. |
Mr Miliband told MPs: "The new management of the RPA are dedicated to build stability and predictability into the system so that full claims are delivered in an efficient and timely way. | Mr Miliband told MPs: "The new management of the RPA are dedicated to build stability and predictability into the system so that full claims are delivered in an efficient and timely way. |
"However, the interim chief executive has reported to me that he cannot guarantee that the agency can deliver full payments within the payment window for the 2006 scheme." | "However, the interim chief executive has reported to me that he cannot guarantee that the agency can deliver full payments within the payment window for the 2006 scheme." |
'Worst fears' | |
James Paice, for the Conservatives, urged the government to ensure farmers were paid by Christmas and said the statement was an admission of failure. | |
He said because of the delay there had been a 50% increase in calls to the rural crisis network and farm borrowings were up by £379m. | |
"Whatever faults the previous chief executive must have, it is quite clear that no single person could be responsible for the catalogue of incompetence but it appears that no-one else is prepared to be accountable," said Mr Paice. | "Whatever faults the previous chief executive must have, it is quite clear that no single person could be responsible for the catalogue of incompetence but it appears that no-one else is prepared to be accountable," said Mr Paice. |
A joint statement by the National Farmers' Union, Country Land and Business Association and Tenant Farmers' Association said the rural economy was paying a heavy price. | |
The delay would cause financial problems for much of the farming industry, the organisations warned. | |
"This confirms our worst fears about the ability of the Rural Payments Agency to deliver 2006 single payments," the statement said. | |
Last month, a National Audit Office report found government mistakes had left thousands of farmers waiting for payments. | Last month, a National Audit Office report found government mistakes had left thousands of farmers waiting for payments. |
It calculated mistakes had cost UK farmers up to £22.5m in extra interest and loan fees. | It calculated mistakes had cost UK farmers up to £22.5m in extra interest and loan fees. |
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