Rural Payments Agency: Basic Payment Scheme

Maria Eagle Excerpts

Tuesday 24th March 2015 Commons Chamber

[Maria Eagle (Garston and Halewood) (Lab)]

(Urgent Question): To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the Government’s failure to deliver a digital-only system for processing the basic payment scheme via the Rural Payments Agency, and what assurances she can give to UK farmers that the failure will not result in significant delays to the receipt of their basic payment?

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

I am grateful for this opportunity to update the House. This is the first year of the new basic payment scheme. As the new common agricultural policy is so complex, we needed to invest in a new computer system to administer claims; the existing single payment scheme computer system would not have been able to cope. The new system included a core, which was there to process data and which was based on an existing system used in other countries, and a portal that enabled farmers to register their details and to map land passes.

The core of the new rural payment system is working well. To date, more than 80% of farm businesses in England have registered successfully on it, so they can submit a BPS claim. We continue to engage and encourage farm businesses to register online as soon as possible. However, there have been performance issues with the online interface that enables farmers to input the data directly, especially when it comes to mapping land passes. We have been working to address those issues since February. Our priority has always been to ensure that farmers can submit their claims by the deadline. That is why we have made adjustments to our plans. The RPA is now offering farmers and their agents the option of using existing paper-based forms to finalise their claims. Information from those forms will then be input by the RPA on to the system.

There are two new ways in which farmers can complete their claims. Farm businesses with little change to their land will be fast-tracked by the RPA. In particular, those who predominantly have permanent pasture will not need to map those details. They will receive an e-mail in April that summarises the land and entitlement information already held on record, together with simple instructions on completing their claim by e-mail. The RPA has identified approximately 39,000 farmers who fall into that category.

Secondly, farm businesses that need to map new features can use blank existing forms to prepare their claims before they are sent a pre-populated form in early April. They can submit their claim by e-mail, by post, or through an RPA drop-in centre, and we have 50 of those now established. Separately, all agents will have received maps of their clients’ land from the RPA by the end of next week. Those dealing with the most complex cases will be offered additional support. The RPA is also exploring the option of giving some agents direct access to the system so that they can make applications quickly.

This is a pragmatic response that applies to the application process in 2015. It means that we will be able to make payments to farmers when the payment window opens in December 2015. All data entered so far on the rural payment scheme system have been saved and will be used by the RPA to complete farmers’ claims this year.

In addition, a number of other EU countries have had difficulties in getting their IT systems in place this year to process this first year of a new, more complicated CAP. In parallel, the Commission has offered an option to member states, allowing them to extend to 15 June the deadline for basic payment scheme applications. That was discussed on 16 March in a Council meeting, which I attended, and it was confirmed by the Commission on 19 March.

In conclusion, the core of the new system works and we are not abandoning anything. We will continue to use it and it will enable claims to be processed efficiently this year and will be the basis for service improvements in future years. However, the action that we announced last week will ensure that farmers can submit their applications successfully this year, and it has been welcomed by stakeholders and those in the industry.

Given the imminence of the general election, I am keen that we communicate with the Opposition on this issue and keep them in touch. I have written to the hon. Member for Garston and Halewood (Maria Eagle) explaining the current situation in detail, and, as she knows, I have offered to meet her, with Mark Grimshaw, to discuss the matter further. Our offices are in discussion about a date for that meeting, which I intend to happen this week. I am also more than happy to keep Opposition Front-Bench Members updated on the changes in the weeks ahead.

[Maria Eagle]

Many farmers will be depending on the basic payment scheme to keep their business afloat and on prompt payment to maintain vital cash flow. Given the seriousness of this matter, I am astounded that the Under-Secretary of State has been sent to this House to deal with it. Where is the Secretary of State? As well as refusing to answer questions on BBC’s “Farming Today”, she now appears to be running away from her duties to this House. Let us hope that the Select Committee has better luck getting her to appear tomorrow.

The disastrous late admission from Ministers that the mapping functionality of the Government’s digital by default system for making payments to farmers does not work is a serious blow to hard-working farmers, not least because the Secretary of State said on 11 March, in evidence to the Environment, Food and Rural Affairs Committee:

“The maps are up and running.”

We have all heard rumours for weeks, but the Government have blithely continued, heads in the sand, to insist that everything will work. As recently as 12 March, at the last DEFRA oral questions, the Under-Secretary of State was saying that his only plan was to make the system work; there was no contingency. As a consequence, many farmers who have endured incredible frustration trying to use the system to map the land, or have paid agents to do it for them, now face having to do it all again on paper, and at one of the busiest times of the farming year. How frustrating and wasteful of time and hard-earned money.

Will the Under-Secretary of State please tell the House why Ministers have repeatedly given assurances that the system works which have turned out not to be accurate? Will those farmers who have paid agents to make their claims online be compensated for now having to pay them again to submit the same information? It has previously been insisted that the scheme is too complex for paper. Now we have reverted to paper, so is there an increased risk of errors, which could result in penalties? Will the hon. Gentleman give an assurance that in future farmers will be able to access and use the information they have already submitted, or will they be forced to start again?

On Saturday, Mark Grimshaw, the chief executive of the Rural Payments Agency, referred to the fact that the EU payment window is open until the end of June. He said:

“I am absolutely confident that we will pay within the payment window.”

For farmers expecting their payments in December, that is far from reassuring. It is disastrous. Will the one-month delay in the deadline for applications cause a delay in payments? Mr Grimshaw has said:

“It will be foolhardy of me to commit to anything in December”.

What does the Minister expect farmers to do for cash flow while they wait for their cheques?

When did Ministers first hear that the digital by default system they chose to insist upon would not work? Why did they not implement contingency arrangements sooner, to save farmers the time and expense now wasted? How much money has been wasted? Finally, can the Under-Secretary of State assure the House that Ministers will now remove their heads from the sand, rise above the chaos and confusion their incompetence has caused, and come clean to the House: will the mapping functionality ever work, or will it need to be completely replaced?

[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.