ONE PENCE SINGLE FARM PAYMENT SHOWS GOVERNMENT’S BUREAUCRATIC SHAMBLES

Roger Williams MP, Liberal Democrat Rural Affairs spokesman, today revealed new figures which show the maze of red tape created by the Government’s single farm payments. The Government quango, the Rural Payments Agency:
• made a payment of just one pence
• received over half a million to their helpline in the past year, an average of over 4 calls per claimant
• has running costs of £250m (up by almost 35% in past 2 years)
• have admitted the IT system delivering the payments cost over £50m – up from the £34m original price tag.

Roger Williams MP said:

“It’s staggering that the Government’s botched single payment scheme has resulted in a payment of just one pence.

“It cost infinitely more just to process this application. The faulty IT system alone cost £450 per claim!

“Why waste time on negligible claims when many farmers are still suffering from delays to payments that affect their livelihood?

“I’m not surprised Tony Blair told the new environment secretary the payment process must be “improved”.

“David Miliband could start by ensuring plots of land the size of a postage stamp don’t get reimbursed for sums not worth the cost of the stamp.

“I want to track down the one pence farmer to discuss this fiasco so I’ve pledged a dinner in Parliament should they come forward.”


ENDS

Notes to Editors:

The RPA is responsible for administering single farm payments in England.
• The lowest SPS payment to date has been 0.01p.
• In the past year (May 05-May 06) there have been over half a million calls to the RPA helpline.
• The RPA’s gross running costs are almost £250m (up by almost 35% in past two years)
• The application forms and single payment form handbooks were not shown to the Plain English Campaign.
• In total, 120,367 applications were received for the single payment scheme (SPS).
[Jim Knight, Official Report, 2 May, Col. 1321W)
• In a letter of 11 May 2006 from Tony Blair to David Miliband outlining the challenges ahead for the new environment secretary, the Prime Minister wrote:

“You will need to ensure that farmers receive their single payment as soon as possible, and that we improve our capacity to deliver payments on time in future years.”

• Liberal Democrats have argued from a minimum single farm payment claim area of 1ha, as opposed to the Government’s 0.3ha. This would significantly help reduce negligible claims

• The IT project cost £54m. That’s equivalent to £450 per applicant.

• Roger Williams has tabled the following Parliamentary questions:

What is the cost of processing a single payment scheme claim; and if he will make a statement.

What plans does his department have to introduce a threshold below which single farm payments are deemed negligible; and if he will make a statement.

What assessment has his department made of raising the threshold for single farm payment minimum acreage to 1ha; and if he will make a statement.

How many single farm payments have been made for (a) less than £1, (b) between £1 and £2, (c) between £2 and £5, (d) between £5 and £10, (e) between £10 and £20, (f) between £20 and £50, (g) between £50 and £100, (h) between £100 and £200, (i) between £200 and £500, (j) between £500 and £1000, (k) between £1,000 and £2,000, (l) between £2,000 and £5,000, (m) between 5,000 and £10,000, (n) between £10,000 and £20,000, (o) between £20,000 and £50,000, (p) between £50,000 and £100,000, (q) between £100,000 and £200,000, (r) between £200,000 and £500,000, (s) between £500,000 and £1,000,000, (t) between £1,000,000 and £2,000,000, (u) between £2,000,000 and £5,000,000, providing each category as a percentage of total single farm payments; and if he will make a statement.

Publish date: 6th June 2006
Modified: 6th June 2006

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