House of Lords written question – answered at on 11 December 2009.
Lord Marlesford
Conservative
To ask Her Majesty's Government what financial penalties they anticipate being imposed by the European Union authorities on the Rural Payments Agency in respect of their administration of the single farm payment scheme in 2006, 2007 and 2008; and what arrangements have been made to finance the payments of any such penalties.
Lord Davies of Oldham
Deputy Chief Whip (House of Lords), HM Household, Parliamentary Under-Secretary, Department for Environment, Food and Rural Affairs, Captain of the Queen's Bodyguard of the Yeomen of the Guard (HM Household) (Deputy Chief Whip, House of Lords) , Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs) (and Deputy Chief Whip)
The European Commission has yet to reach a view on what, if any, disallowance should be applied in respect of the single payment scheme (SPS). However, provisions totalling £205 million have been made in Defra's accounts in respect of the administration of the 2005 and 2006 single payment schemes in England. No provisions have been made for subsequent scheme years.
Funding for near cash implication of any SPS related disallowance that is finally imposed in the current Comprehensive Spending Review period will be drawn in the first instance from a ring-fenced sum that Defra has agreed with HM Treasury for this purpose. Should any disallowance exceed that sum, the necessary additional funding would be met from within Defra's budget.
Yes2 people think so
No2 people think not
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