Select Committee on Agriculture Minutes of Evidence


Examination of Witnesses (Questions 120 - 139)

WEDNESDAY 14 JUNE 2000

MR BEN GILL AND MR IAN GARDINER

Chairman

  120. Thank you very much for coming. You know what we are doing. We are looking at the future of regional service centres in the light of the PricewaterhouseCoopers report. We have had quite a lot of evidence. We visited Crewe. We visited Northallerton. So we are now going to talk to you and to the Service Centres' Union people and then we have the Minister. That is the shape of the thing. If farmers had a way of handing in their IACS forms, so that they could get the sense that they have handed it in; they have had a receipt for it; "Phew, we have got it out of the way. It is done and we know it is safe"; if you were to take that function and separate that from the service centres: is there anything left in the service centres that requires them to be where they are, in the number they are?

  (Mr Gill) For the record I am Ben Gill, the President of the National Farmers' Union of England and Wales. On my right is Ian Gardiner, who is our Deputy Director General. Is there anything left for the regional service centre? I find this question almost like saying: why do we not do everything by video conferencing? In theory you can do, but it is the human touch that is there, which quite often is important. People forget things. People want to be able to go and see somebody face-to-face to get the form. So there is something. Whether it is quantifiable in any serious size is another question. For those individuals who have a problem, where they need to be in touch, it is important. I, in the past, when I have forgotten to do something until the last minute and I want to see it checked and done: I remember one occasion when I found, right at the last minute, because the rules had changed with regard to family partnerships for the ewe premium, I had forgotten to effect a formal transfer of a sleeping partnership as regards to MAFF's knowledge. I had to rush up and get everything done there and then. The ability to have someone there who can say, "You have this right, you have filled in the right forms, it is done," gives a degree of reassurance, which is actually quite important for farmers with much at stake, for failure to make these declarations properly.

  121. What struck me is that even very, very large farmers—and I spent two days last week judging the Farmers Management Competition at the East of England Show—managers with 5,000 acres still took their forms to the regional service centre. They are accepted but nobody was checking that form for accuracy of content. They were checking that the boxes were filled in correctly.
  (Mr Gill) There is also the fact, Chairman, of the unreliability of the mail. It is sometimes less than it used to be in accuracy. I, personally, in my area, have had, in the last three months, to my certain knowledge, three important pieces of mail just lost. You worry about that. When you have tens of thousands of pounds at stake, the security of physically handing it over rather than even relying on registered mail, is something that you feel is actually a very important part of the business. That is why people do this. There is also the sense of relief that is quite clear, certainly for those who worry about filling in forms. Some of the questions there are quite daunting. What is the answer? I find myself looking back to the previous year's application to try and find what the answer was because I have forgotten what the answer should be to some of the technical points. So it does become very daunting for anybody.

  122. Say, a caravan with MAFF people in it, at the auction market. That could be done, could it not?
  (Mr Gill) Indeed it could. Or the local hotel. If you visited Northallerton they have a record—I think they still do it—of hiring hotels and allowing farmers to go in and deliver the form. That is perfectly adequate for that purpose. When it is the time of year with IACS, that focus is on it, time of year prior to the submission of the ewe premium, etcetera.

  123. What is the NFU view of the PricewaterhouseCoopers report? Are you broadly sympathetic to the idea that some changes are necessary?
  (Mr Gill) We have an approach to this. We recognise the need for ever increasing efficiency. We are enormously concerned about the level of paper work that our members face. The time it takes to fill those forms out. The checking of mistakes that are made. There is a clear need to minimise, at every opportunity, potential for just translation errors from one paper to another. How many times have we all, for example, been given a telephone number in our ear, a telephone number to write down, and we "misorder" the numbers when we write them down? We do it quite simply and without realising it. Every time you have to write a form down this happens. I find, in my IACS forms each year, probably about a fifth of my fields have to be redefined to fit in set-aside and other things, which have altered field boundaries. That requires total transcribing of the information. There is a potential for error.

  124. Do you set down set-aside as a separate field?
  (Mr Gill) No. You may have had a field divided between two crops one year and it becomes one the next year. For set-aside we have to go to a different percentage. It is varied. We have to do part fields for set-aside. All these things happen. So you are changing things every year. Every time you are transcribing the number there is a potential for error, so the ability to go towards electronic use has an attraction but it has very real fears as well. I was frightened of a computer until my young sons told me how to do it. If you have not got a young son who can actually remove that fear, it is something that is quite daunting.

Mr Jack

  125. What about daughters?
  (Mr Gill) And daughters as well. I happen to have sons!

Chairman

  126. Is the NFU not tempted at all by the thought that there is a business opportunity for it here in actually acting as an agency to help farmers fill in their forms, verify their forms, make sure they are delivered? Just like the tax inspector, who is like a tax adviser when I submit my forms to the Inland Revenue. Do you not see that there could be a business opportunity here? Are you not tempted by that?
  (Mr Gill) There is an opportunity to help our members in many fields. There are existing situations where our group secretaries have helped people, advised them on the filling out of their forms, not just on ewe premiums but across the board. Until he passed away, there was one group secretary in the north west who forbade his members from filling out any form. He had his own duplicate sets of forms and they came in and made an appointment, told him the information, he filled out the official form, and they signed it. He said this was far easier because they made mistakes themselves and at least he could sort the mistakes out if he had made the mistake on their behalf. The liability actually scared us very severely but his members relied on him totally, so much so that he had virtually 100 per cent membership in his area. Of course, we look to what members' needs are.

  127. If you went electronic, that sort of role could be taken on by you?
  (Mr Gill) It depends how we go electronic. One option might be to find some arrangement for every farmer, if they want to, to have a computer in their farm office and train them to go with it. Equally, an opportunity would be the computers that we have in our own offices, which would be a point where members could take their own information to their group secretary and file that information on to the MAFF database. I understand, for example, that in Italy, that is the practice which is prevalent and has been for some time.

Mr Jack

  128. In your memorandum you talk about the fact that you represent 55,000 farmers in England and you go on to say: "We are conscious that MAFF regional service centres provide a first contact point for farmers into MAFF over a wide range of issues." What percentage would you estimate of your members actually physically, in the way you have just described to us, make some kind of annual contact with a regional service centre?
  (Mr Gill) Until the forms for the CAP a negligible number, since the reform of CAP, I have no idea what the percentage would be; but I would think it would be the vast majority of farmers, who make contact through the submission of their forms, or queries they have on those forms. My early experience of the standard of service we have had from some of those regional service centres has actually been very, very good.

  129. When you say "you think", is this across all sectors of farming? Are we saying that no farmer feels reassured enough, if you like, to send their forms off or to enquire by telephone? They all have to go along? If that was the case, we might have had reports from our visits indicating that there were queues and queues of farmers, but I do not quite get that impression.
  (Mr Gill) If you go at the end of April, start of May, you will see queues of farmers. You are given a number when you turn up and you sit and wait. I have not done it myself personally because someone else has done it on my behalf in the last few years. But you could wait. In more recent years it has been half an hour initially—but it could be an hour—to be seen. There would be as many as ten or 15 MAFF officials in the room working, taking on forms, in a very business-like way. So, yes, there are queues. Yes, it is very orderly. It is very efficient in that way in terms of time waiting.

  130. Given the diverse nature of farming, does that picture you have just painted apply to all sectors of farming?
  (Mr Gill) Obviously it does not apply if you are a pure horticulturalist who has, in no way, a need to make any applications to MAFF for payments. The IACS application form covers not just arable aid, it covers the grassland sector as well, and you have to fill that in for HFAs and, of course, ensure that you can account for your stocking densities not just on arable farms as well.

  131. One of the features that has come through from various bits of evidence, when you talk to farmers, is this idea of local knowledge. How relevant is that? The picture you have painted is one of people concerned about the reassurance that somebody official takes the form and somebody official checks the boxes. In terms of different farming regimes, how much is this local knowledge important, do you think, in terms of resolving some of these difficulties?
  (Mr Gill) I think there needs to be, in any system, a brand of local knowledge of their people. There needs to be some background. Someone can pick up, "He is always doing things wrong." There is also the alternative, "I have never had any problems with this person before. This seems to be a totally genuine mistake." So you have that history of the case, which may be available if you did it on a central database, but not as regularly as a personal visit. Farmers are intensely personal people. They like to feel they are dealt with in a personal way. That should not preclude change but it answers the question. Farmers and growers like to feel they have a point of contact. In certain cases, I could imagine, for example, say someone who is applying for a special premium has cause to ring up on a regular basis. Over the telephone there are relationships which develop an understanding of that particular situation.

  132. For example, on my tax affairs, as all Members of Parliament are public servants, they are handled in Cardiff. The man I speak to from time to time might have got some inkling about my tax affairs but he could be in Cardiff, he could be in Edinburgh, he could be anywhere. As long as he has the technical knowledge, where he is does not make any difference.
  (Mr Gill) That is correct. As, indeed, all vehicle licensing is done at Swansea. But, my goodness, do we not see a lot of mistakes coming out on that, which is pretty soul-destroying. If I look at all the vehicle registration documents and driving licences of my family, I would think that out of a dozen we probably have two that are properly identified down to the exact last letter and post code. It is simple transcription errors. What we are aware of is that in our sector those sorts of errors would make applications, quite often, invalid. That worries us. It worries us enormously because more than ever now any invalidation of claims could mean the difference between survival—in fact, probably would mean the difference between survival—and failure.

  133. In terms of the location, at the moment the RSCs are stand-alone organisations but there has been some discussion as to whether they should be subsumed into Government Offices as part of a one-stop approach. How would you feel about that? For example, instead of places like Crewe being the location, it was stuck in the heart of Manchester for that part of your request.
  (Mr Gill) The relocation of any residual element of the MAFF regional service centres within the Rural and Regional Development Agencies would cause us enormous concern. We do not believe it would be appropriate for them to be there. The difficulties of anybody gaining access to someone in the centre of Manchester or Birmingham would be quite profound and make it very much harder. The siting of the MAFF regional service centres has been done in a very considered strategic approach—not without problems in itself—but done with a degree of sensitivity that has enabled people to establish those relationships, particularly when you add on the out-stations that they have built.

  134. If we look at what is happening in the world of the Rural Development Plan, there is an attempt to look at the farm as a business, not just as a farming activity. I know you could say that farming is a business, but there is the idea of looking at the assets of a farm and saying: what else could happen? Some of the boundaries of sources of help are gradually being rubbed out. Some of the things the DTI do become relevant to farming. Are you still saying to me that you really do think that these centres should be separate from the rest of government because of the unique nature you describe as farming, notwithstanding the direction of policy, which is looking at farming not just, if you like, as a food production business, but as a business entity?
  (Mr Gill) On the one hand, you are saying to me that we should make use of IT and, therefore, we do not need to have proximity to the farmer. On the other hand you are saying, we need to have the proximity of Government Departments to work together. That does seem a little incongruous. The reality, in my mind, I would hope—and, from my knowledge of the personnel, the ability to use the technology—would be far greater, far more widespread, at the Government departmental level. The need for personal contact is far greater to the farmer at Government level.

Mr Todd

  135. For the avoidance of doubt, you see no obvious value for the processing function of forms being carried out in the current location. There would be no value to the farmer, that being the case?
  (Mr Gill) I can see no problem about the actual location of processing the forms. On that particular point, it does not matter to me whether the person who rings up with a query is in Cardiff, Plymouth, or Inverness.

  136. The current locations, all locations chosen are compromises, and from our initial visits it is clear that those who live closest to the locations visit them most. Commonsense would indicate that. That those who are furthest away tend not to use them so much. Surely adherence to the current precise locations is more to do with historical accident than precise definition of need? You implied it was a rather scientific approach: carefully chosen locations which were sensitive to farmers' requirements. We have seen little evidence that it does more than assist a group of farmers a great deal and others not so much.
  (Mr Gill) Obviously, if a farmer is located very close to the regional office, then there will be a greater ability to use that office. If I gave the impression that the siting was a precise scientific calculation, I apologise. I did not mean to give that. The division of MAFF within the regions was done to try to give some location with Carlisle and Northallerton, to take the two northern examples, being placed in market towns with relatively easy access, and with a distribution network of roads that brings people to those areas relatively easily. They can then be coupled with out-stations—caravans, if you want, or somewhere which is rented—which can facilitate a greater spread available of dialogue face-to-face with MAFF representatives.

  137. But you are not necessarily adhering to the view that the precise locations that there are now should remain set in stone, bearing in mind that the delivery of the services, as we have broadly agreed, may change sharply with processing moving to other places; and with, perhaps, more diffuse arrangements for the collection and initial validation of the forms?
  (Mr Gill) Let me get it right. I am not saying— I am agreeing—

  138. You are agreeing with me?
  (Mr Gill) Yes.

Chairman

  139. So does Mr Gardiner. He was nodding with approaching vigour at the time.
  (Mr Gardiner) Just a couple of points. If you are a farmer in Kent, having a regional service centre in Reading is not really very useful to you. On the other hand, if you are a farmer in the Midlands, I doubt if having a MAFF regional service centre in the middle of Birmingham is going to be too useful for large parts of the day when the traffic hardly moves. I am not saying the current regime is right. From our viewpoint it is more appropriate that at the peak times of the year, the IACS peak, the sheep and suckler cow premium peaks, farmers have access to places which they know will be taking their forms, and have a guarantee of receipt. Of course, just to add to that, it is perfectly true that electronic submission provides them with that guarantee, just as much as going to a temporary or permanent MAFF site does.


 
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