Rural Payments Agency: Basic Payment Scheme

James Gray Excerpts

Tuesday 24th March 2015 Commons Chamber

[George Eustice]

I will begin by reminding the Opposition of their own record on the Rural Payments Agency. Let us not forget that in 2005, the system they introduced led to £600 million of disallowance for this country. Payments were regularly more than a year late—hardly any farmers ever received their payments on time. It took a Conservative-led Government coming to power in 2010 to sort it out.

The hon. Lady asks whether everything will have to be resubmitted on paper. As I made clear in my opening statement, for those farmers who have managed to enter their mapping details, the information has been recorded; they will not need to start again. She says that we have always maintained that the new CAP is too complex to be processed on paper alone and needs a computer. That remains the position. As I said in my opening statement, that is why we will still use the core of the system to process the data. We have, for example, coefficients on the areas farmers have of broad beans, leguminous vegetables, hedges and so on. It is complex, and that is why we are not removing a digital approach, but simply having RPA officers enter the information on behalf of the farmer. This is not a paper-only system; it is a paper-assisted system.

The hon. Lady said that Mr Grimshaw, the chief executive of the RPA, had said that he could not give guarantees about the payment window. Having worked with Mr Grimshaw for 18 months, I can say that he is cautious and he never gives guarantees. In all the time I have known him he has never said anything other than that we will make our payments within the payment window. In the past couple of years well over 95% of farmers have been paid on the first day of banking and paid early. I am confident, as I said, that once we have the information in and it has been processed, we will have a system in place that can deal with it.

The hon. Lady mentioned contingency plans. We have adapted our plans and acted to ensure that farmers can get their applications in time this year. That is the responsible thing to do. It would have been wrong to abandon the system and prematurely abandon attempts to sort out the portal, particularly the part that deals with land mapping. We have acted in time to ensure that farmers can get their applications in place, and the steps that we have taken have been welcomed by the farming industry.

[Mr James Gray (North Wiltshire) (Con)]

I pay tribute to my right hon. Friend the Member for South East Cambridgeshire (Sir James Paice), who carried out fantastic work in turning around the mess that he inherited in the Department and sorting this out. Will my hon. Friend help me with one detail? The mapping that we are talking about is often very detailed—an electric fence here, a bit of undergrowth there. Would it be possible to pay farmers on account as partial payment this year, with the amounts being adjusted in subsequent years’ payments?

[George Eustice]

Provided an application is received by the deadline, there is provision in the EU regulations for it to be amended for a period of weeks after that. My hon. Friend’s suggestion of a payment on account while an application has not been received would not fit within the EU regulations, but we have made progress in getting that deadline extended to 15 June, and I have asked the RPA to take a sympathetic view towards farmers who are struggling to get their application in and who may want to amend those details after their form has been submitted.