Part of Business of the House – in the House of Commons at 12:16 pm on 22 June 2006.
Christopher Huhne
Shadow Secretary of State for the Environment, Environment, Food & Rural Affairs
12:16,
22 June 2006
I cannot comment on "Farming Today", but I note that the right hon. Gentleman's statement was available on the Department's website long before it was made available to the House. As a former journalist, I am delighted that at least one part of the Department is operating beyond its productivity quotas, namely the press and communications office. I hope that that does not reflect the Secretary of State's priorities, because this continues to be a grave issue for a number of farmers. I was informed today that, in the last three days alone, five farmers who have received no payment have approached my right hon. Friend Mr. Beith. We now know from the Secretary of State's own figures that a substantial number of claimants—nearly 15,000—have received no payment. That is obviously devastating for some of the farmers involved.
We are pleased that further progress is being made on payments. We are also pleased that the Secretary of State has seen fit to authorise interest payments, which we have requested for some time, and party payments for the 2006 single payment scheme, which we have also requested. However, it is worth noting that it is reported that the parliamentary ombudsman has received several complaints about the maladministration of single farm payments. If that is indeed the case, is it not clear that the interest payments have been granted at a time when the Government have a gun to their head?
Moreover, the Department's proposed interest rate of 1 percentage point above the London interbank offered rate strikes me as surprisingly niggardly. There may be a farmer or two in the country who can borrow at 1 per cent. above LIBOR, possibly including the Duke of Westminster, but a more typical rate for small farmers would be between 3 and 4 per cent. above LIBOR. Although DEFRA has made that commitment, I should be grateful if it took account of what farmers have had to pay to relieve the liquidity crisis caused by its incompetence and reflected that more adequately in the proposed interest payments.
Does the Secretary of State agree that, by giving firm assurances that 96 per cent. of payments would be made by March 2006—assurances given as late as 2005—his Department raised farmers' expectations about the timing of their payments above the legal minimum, and that that has seriously disadvantaged many farmers? How will he compensate them? Will he also undertake to assess the impact of mapping disputes causing farmers to miss the deadline for entry to agri-environment scheme?
In response to a question from a Liberal Democrat, the Under-Secretary of State for Environment, Food and Rural Affairs, Barry Gardiner, said:
"Feed merchants are, to varying effects, likely to be affected by the cash-flow issues faced by farming business waiting for receipt of payments under the 2005 Single Payment Scheme".—[ Hansard, 14 June 2006; Vol. 447, c. 1209W.]
What plans has the Department to assess that impact accurately, and how will the Secretary of State ensure that feed merchants and other businesses that depend on farm revenues do not suffer?
As the Secretary of State knows—because he was asked about it by Mr. Ainsworth—the late payments will have an impact not just on the finances of rural communities, but on Government finances. However, I did not hear him specify a figure that he has told the Treasury to expect for the overrun that will be caused by the fact that the European Union will not meet any payments made by DEFRA after
The Secretary of State said that a minimum payment level was not available for 2006. Given that the RPA has made a payment of just 1p, and that the costs of the £54 million IT system, if divided equally among claimants, would be about £450 per head, will he give urgent consideration to imposing a minimum threshold on payments for 2007 to prevent a repetition of this costly bureaucratic nonsense? I should be grateful if he also gave us an update on the trading of entitlements.
Secretary of State was originally the title given to the two officials who conducted the Royal Correspondence under Elizabeth I. Now it is the title held by some of the more important Government Ministers, for example the Secretary of State for Foreign Affairs.