Oral Answers to Questions — Environment, Food and Rural Affairs – in the House of Commons am 10:30 am ar 2 Gorffennaf 2009.
What recent steps his Department has taken to reduce the overall cost of the single payment scheme.
What recent assessment he has made of the effectiveness of the operation of the single payment scheme.
The Rural Payments Agency has made a year-on-year improvement in the timing of payments under the single payment scheme. For scheme year 2008, at
The agency has been working to reduce the administrative costs of the scheme, as well as to reduce the burden on farmers. A number of initiatives to improve the process of claiming payment have been introduced, including online applications and the issuing of claim forms that are part-completed. Those initiatives ensure that the overall process is easier and quicker.
Yes, but given our commitment to further reform of the common agricultural policy, is it not time to cut back the escalating cost of the single payment scheme, which is £1.6 billion in this country and £25 billion across Europe, and is expected to hit a staggering £35 billion in 2012? As well as the cost to taxpayers and consumers, is it not against the interests of young farmers if landowners are paid £100 an acre whatever they grow? Does not that just increase the threshold to get into the profession?
I assure my hon. Friend that we are committed to reforming the system. The health check has in recent years made the system less bureaucratic and fairer. We are continuing to press in Europe for a move from pillar 1 to pillar 2, which would make it less bureaucratic and easier for young people to come into farming.
Single farm payments are supposed to allow farmers to cope with a market that is unfair, but each payment last year cost the taxpayer £742 to administer. Some 14,645 payments of less than £400 were made, including 636 of less than £50. Will the Minister consider introducing a minimum claim value of £250 to £300, which would reduce bureaucracy without damaging hard-working family farmers?
As a result of the CAP health check, we are in the process of introducing new de minimis options. DEFRA is consulting on the new minimum of between one and five hectares. The Rural Payments Agency's performance has improved dramatically in recent years, since the great difficulties of a few years ago. For 2009, for example, the target of paying 75 per cent. of claims by value by the end of January was met on
Some years ago, my hon. Friend—as I shall call him—Mr. Williams and I were both Members of the Select Committee on Environment, Food and Rural Affairs when it was holding an inquiry into the disasters of the single farm payment. The process has improved considerably, but is the Minister aware of the problems with the rural land register, which is at the heart of the single farm payment? Some 120,000 farms in England have received their maps recently, but those maps are showing remarkable things, such as hedges and walls that were demolished or removed in the 1950s, neighbourhood land being attached to farmers' holdings and so on. What confidence can we have that the single farm payment in 2010 will be based on accurate data?
I can reassure my hon. Friend and the farming community that the mapping procedures being conducted now will not affect this year's payments. There are 28 days for farmers to respond to the maps that they have received. We have been in touch with the RPA already. I have a meeting with the RPA chief executive next week and the mapping arrangements are at the top of the agenda. I met National Farmers Union representatives at the royal Norfolk show yesterday, where they expressed their concerns about the matter— [ Interruption. ] As my hon. Friend Mr. Hoyle says from a sedentary position, I am wearing a Norfolk Young Farmers Club tie to demonstrate my appreciation of their generosity yesterday.
In conclusion, there is concern about the mapping. We are aware of it, we are dealing with it and we will ensure that it will not cause problems such as those that we have seen before with the RPA.
I refer hon. Members to my entry in the register.
I am sorry, but the Minister's answer is just not good enough. At the heart of the single payment scheme is the RPA. The RPA is sending out the wrong maps, again, to farmers and is giving them just 28 days to respond at the busiest time of the year. That shows that the RPA is still an incompetent organisation. At his meeting with the chief executive next week, will the Minister intervene to stop that process and remind the RPA that there is something called a harvest, which means that farmers are at their busiest at this time of the year and that they have to be given longer to respond to the mess?
I assure the hon. Gentleman that that item will be at the top of the agenda next week. We are aware of the anxiety that it is causing. As I have said, it will not affect the payments for this year. A pilot exercise was conducted with 1,000 farms to try to ensure that the roll-out would be as efficient and accurate as possible. We need to update the maps because they are static maps and the situation is changing regularly. That process will allow us to put them online, which will make it easier for farmers in the future. We are hearing some concerns and some complaints, and the RPA is responding to the farmers who contact the agency. I will make sure that the matter is top of my agenda in the weeks ahead, because we need to ensure that we get it right.
The costs of running the single farm payment scheme are but one item in DEFRA's budget. The Secretary of State has made it clear that, from 2011, his Department's budget will be reduced. Will the Minister now outline what cuts in services to the customers of DEFRA the Secretary of State's announcement entails?
Our Department, like all Government Departments, continuously reviews its budget and seeks to be as efficient as possible. There is no threat in the statement by my right hon. Friend the Secretary of State. We will continue to examine our budget and we shall ensure that the Department runs as efficiently as possible.