“Ministers went ahead on the back of bad advice. What officials said was possible was, in fact, impossible. As a result, chaos ensued”.

“Four years later, the Agency still does not have proper control of the scheme and the government has been forced to set aside over £200 million to cover disallowance of expenditure and the imposition of penalties by the European Commission”.

“Farmers across mainland Europe should thank their lucky stars that their payments are not administrated by the Rural Payments Agency”.

Mr Bacon was speaking as the Commons public accounts committee published its report into the Rural Payments Agency’s progress in resolving the difficulties in administering the Single Payment Scheme in England. The report finds that the Rural Payments Agency has not yet managed to bring the administration of the Single Payment Scheme properly under control.

Failings in implementing the Scheme have led to the risk of significant disallowance of expenditure and the imposition of penalties by the European Commission. The Department’s 2005–06 and 2006–07 accounts included total provisions of some £220 million for disallowance, and £70 million accruals and contingent liabilities for possible late payment penalties in respect of the Single Payment Scheme in England.

The report also finds that, in preparing policy papers for Ministers, Defra officials had not drawn sufficient attention to all the risks to implementing the complex dynamic hybrid scheme and the likely impact on delivery.

15 July 2008

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See also:
PAC REPORT: A progress update on the Single Payment Scheme
PARLIAMENT: Rural Payments Agency 'failed farmers' says MP
PARLIAMENT: Farmers still suffer from Single Payment shambles

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