Single Farm Payment

Environment Food and Rural Affairs written question – answered on 30th March 2006.

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Photo of Bernard Jenkin Bernard Jenkin Deputy Chair, Conservative Party

To ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the effect of delays in the single farm payment on the supply chain within the farming industry; and whether she has had discussions on compensation for creditors.

Photo of Jim Knight Jim Knight Parliamentary Under-Secretary (Rural Affairs, Landscape and Biodiversity), Department for Environment, Food and Rural Affairs, Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs) (Rural Affairs, Landscape and Biodiversity)

To the extent that the agricultural supply industry has been affected by the cash-flow issues faced by some farming business, it should welcome the positive action the Department is taking to ensure payments under the Single Payment Scheme are made as soon as legally possible, as set out in my right hon. Friend the Secretary of State's written statement on 16 March 2006, Hansard, column 104WS. The issue of compensation does not arise as the EU regulations governing the scheme provide for a payment window that runs until 30 June. It is now March. Farmers have been aware for more than 12 months that payments would not be made before February 2006.

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