Select Committee on Agriculture Minutes of Evidence


Examination of Witnesses (Questions 140 - 159)

WEDNESDAY 14 JUNE 2000

MR BEN GILL AND MR IAN GARDINER

Mr Marsden

  140. May I ask you, how satisfied are you with the current arrangements? Scale them one to ten, ten being that you are totally satisfied. Farmers are completely satisfied with the system. Give me a number.
  (Mr Gill) You find me almost speechless!

Mr Todd

  141. I do not think I have ever heard a farmer say ten to anything! On any subject.
  (Mr Gill) It would be greater than five but less than ten.

Mr Marsden

  142. So it is fair to say, at the moment, that you are saying that the status quo is not bad. It seems to work okay, although maybe there needs to be one or two changes.
  (Mr Gardiner) Yes. Our contacts with our members—plus, of course, the MAFF system, which does customer surveys—all tend to show that farmers are satisfied with the administration. When they separate the administration from the actual system, they are very happy with the administration. As the President has said, there are, however, very large sums of money relative to a farm business at stake; so they are very cautious about changes and rightly cautious about changes to that system. Not very much knowledge of the changes is widespread in the farming community. Sometimes what there is, is not an accurate reflection, it seems to us, of Ministry plans. One thing that is absolutely clear is that if there are major changes to go ahead, the earlier the information and accurate information plans are put to the farming community; and if there are some sensible questions like: would a design which had more temporary MAFF offices, which were smaller and just form collecting offices, would that be better than the current system; if their opinions were asked, they would be a lot happier about a management change. After all, farmers try to run their farms efficiently. They recognise the Ministry tries to run the administration of the claims system efficiently. But when you are very satisfied, or broadly satisfied with the current set-up, you want to know that you are changing to a set-up which will leave you as equally satisfied, if not more.

  143. I accept that. What I am leading up to is that the NFU seems to be reticent about changes, full stop. Clearly the regional service centres, at the moment, are not delivering what farmers want. We have heard criticism that the staff in those centres, with the best of intentions, cannot deliver policy advice, cannot deliver in terms of how to fill out a form and what is in it, unless it is unofficial and off the record. That is not satisfactory. In terms of the actual fact that they are there, I totally agree with you. We need people to be there, and very locally available, to be able to assist farmers. At the moment, it is not there. It is not available. Let me give you an example. The West Midlands. I would have thought that farmers in my constituency, in and around Shrewsbury and Shropshire, would much prefer to meet somebody, maybe from MAFF, just down the road, whether it was in Shrewsbury, Telford, or wherever, and be able to hand in their form and be able to talk and get proper advice, rather than travel all the way up to Crewe and obviously then not be able to get any advice—or at least have the peace of mind that they have handed over a piece of paper—but clearly that is not what they want, so why is NFU so reticent about changing?
  (Mr Gardiner) I think there are a couple of points there, Chairman. It is better for somebody in MAFF to answer about the legal position of civil servants. Obviously the advice has to be careful. There has to be a delineation between giving advice on the meaning of general rules and the particular application to that farm, where it may be more appropriate for a farmer, if he is in serious doubt about the application of the general rule to his IACS form, to seek professional advice.

  144. That costs money.
  (Mr Gardiner) That may be but again I think somebody from the Ministry should answer that.

  145. The NFU is supposed to represent these farmers.
  (Mr Gardiner) Surely.

  146. The system is not working and you are saying that the existing regional service centres are the best solution but, by the way, farmers who cannot afford it should be going and paying for professional advice.
  (Mr Gardiner) I am not saying that at all. At least 70 per cent of farmers are members of the NFU where we give that advice. Our regional staff have a raft of experience and information about the system and those members who contact us get a great deal of help. All of that is entirely free. It is part of our service to our members. So I am not saying that farmers are short of information. Nor are civil servants, in my experience, the regional service centres, not helpful to farmers, but they have to be conscious of certain limits. It is not up to them as to what figures you put in the box. It is up to the farmer and his knowledge of the form. There are some problems there.
  (Mr Gill) We need to distinguish between farmers being unhappy about the level of paper work they have to do, which is the major factor. They are extremely frustrated not just by the paper work but the potential for little errors and the consequences of little errors being draconian. We have the long running example of over- and under-declarations, where MAFF have failed to credit under-declarations against over-declarations, and have levied significant fines on those people.

  147. Absolutely.
  (Mr Gill) But these are not, in this sense, the points about the service centre. That is a decision taken elsewhere, upon those particular points, as a result of the Court of Auditors. I was answering questions purely and specifically with regard to the operation of the service centres in receipt of that information as handed over. You then come to the broader question of the PwC report, which is that there are gains to be made by electronic transfer of the information. The trial that has taken place in the Cambridge Service Centre has shown—and I think very positively—that there are glitches in what is being done, but they are not insurmountable. After all, as I have said, a large proportion of Italian farmers, across the whole of Italy, which are perhaps not noted for their abidance of the law—I think they might have introduced a milk quota in Sicily 11, 12, 16 years on down the road—if that is the case, then we need to look at that. The Cambridge trial has thrown up problems but has been positive. Interest has been there. The feeling and fear of farmers is that it will come up as a mass on screen, but make a mistake and nobody will tell me. They are not aware that this will be interactive. They are not aware that the suggestions are that it will actually interrogate you and give the questions as you fill in the form on a similar basis to physically handing the form in. It is that fear of the unfamiliar that we have to break down: not by force but by informing, enlightening and training farmers, so that those who want to take it up can do so, but those who still want to go the paper route have that option.

Mr Öpik

  148. It sounds from all of this that if you regard the farmer as the client and the regional service centre as the supplier, then maybe a lot of the issues that my colleagues here have raised are resolved, because the regional service centres should be asking the question: how do we best supply the service to the farmer? If that is right, and is one of the clarion calls, it seems to me from what you are saying that they should be going out to their clients, out to farmers, who want one-to-one contact and who regard this as very important. Is that a correct assessment or not?
  (Mr Gill) I think it would be over-draconian for them to do one-to-one visits to take in forms. There are enough farm inspections already going on, by a multiplicity of Government agencies, that causes a lot of annoyance amongst the farming community. Farmers want to continue to be able to submit paper applications, to submit them physically to a representative of Government in person, (in this case, MAFF), which is absolutely crucial.

Mr Hurst

  149. Replying to Paul Marsden, you indicated the pilot scheme in Cambridge. Would you think that Cambridge is perhaps a rather more electronically advanced part of the country than other parts where your members might live and, therefore, would not be typical of what you would expect?
  (Mr Gill) I think that is a perfectly correct assumption. I assume this is behind the decision to do another trial in Kington in the West Midlands, which is more of a livestock based area, where they are looking at training farmers.

Mr Drew

  150. To move on to the performance of the different centres. There is a variation in performance standards. Why do you think that is so? Is that down to the individual offices or is it down to the sectors that they mainline in? Or is it to do with the forms that they would be dealing with in those sectors?
  (Mr Gill) I cannot be sure. I suspect it is principally down to the individuals concerned. You see this in any organisation that is public or private. The success of a particular branch varies enormously with the people in control of it.

  151. Does the membership that you represent complain about any one of the schemes, and find difficulties in getting them processed correctly?
  (Mr Gill) There is no particular scheme that stands out as the bete noire of all of the applications that have to be made. There is a major feeling that there is too much paper work to be done, and the complexities are being made worse by the reform of the CAP in the livestock sector. The concerns about the extensification premiums are recorded there, together with the slaughter premiums. This has made the paper work seem more intense rather than reducing the complexities for farmers.
  (Mr Gardiner) I would add to that. New set-aside for industrial crops is another area where there may be significant problems—not all of them but which may be either the farmer or MAFF's problems—but also the processors. You have three parties who have to be linked together administratively. That makes it much more difficult.

  152. Do you get many complaints about the time taken to deal with particular enquiries?
  (Mr Gill) It is not a major issue that I have been made aware of in recent times, although there are certain cases where there are delays. Once you get into a dispute over some particular point, then it can be a lengthy process on that case, where it can take several years and significant amounts of money. This is frustrating, as is witnessed by the example I mentioned a few minutes ago, of over- and under-declarations. One of the big issues that comes up is not per se within what PwC are talking about, but the variations in field measurements that take place, which then reflect back to the form filling.
  (Mr Gardiner) It is particularly so, when you become involved in some of the finer details of the rules, where the Ministry not only have to consult within themselves, but have to go to the Commission for rulings. All of a sudden you can find nine months have gone by with a farmer still desperately and greatly worried about what his position on payment is going to be. That is probably the major problem.

  153. Do you communicate regularly with the farmers? One of the things we saw last week, in going out in Northallerton, was that the officials from MAFF were saying that they were not allowed to give advice but were only able to communicate back to say, "Sorry, this has not been dealt with, but this is going to so and so." Is that your experience?
  (Mr Gill) I am not aware that there is a communication problem, save that there are significant time delays that Mr Gardiner has just mentioned. In itself, because of the time delays, they feel a vacuum there and they are worried about it. The problem arises there that the Commission do not give descriptive advice to Member States on how to interpret any piece of legislation. Therefore, the Government has to second-guess what the Commission intends. That is a secondary issue, which will be there until the Commission changes its position.

  154. What about the establishment of the National Scheme Management Centres? Has that been fairly seamless and has it improved things or is it too early to say? Or has there been a deterioration since we have set out on that agenda?
  (Mr Gill) I am not aware, from last summer, that it has caused any differences. I suspect the differences have been caused by what has been the effect internally to their benefit. One particular centre comes straight on one particular area, so you can focus on that.
  (Mr Gardiner) It is that which can cause further communication difficulties, because you now have a regional service centre specialising, MAFF's central part, and you have Commission officials on the hard cases. It may help the Board run but on the very detailed hard cases it may make life a little bit more difficult.

  155. Did the NFU support this move?
  (Mr Gill) We were consulted about this move. We have responded to it.

  156. Again, on the visit last week to Northallerton, both the management and individual staff made it clear that they felt that their practice and procedures had improved quite dramatically, partly as a result of IT. But they were of a mind: yes, we appreciate that we still have some way to go, but we have gone a long way in the recent few years. Is that the experience of the membership?
  (Mr Gill) You will always find some members who have particular complaints, but there are many occasions when I talk to members who are satisfied with the service they receive from the regional service centres.
  (Mr Gardiner) I think it is an important point there that the assistance which the MAFF staff get from their computing system has undoubtedly improved over recent years. In fact, that enables them to give a better service to our members, yes.

Mr Todd

  157. How many farmers, do you think, own appropriate computers for the use of submitting forms?
  (Mr Gill) It is exceedingly difficult to be certain of that sort of thing. In your question you have highlighted that it is not just how many farmers have computers. Obviously they have to have a computer that is compatible with the system. For example, the first computer I bought for my business was an Applemac, which has compatibility problems, owing to the age of the computer. Not being aware of these sorts of points, is quite important for farmers. What I am aware of is that this is changing quite rapidly within our own organisation, if there is a comparator. From this month, for my central Chairman's Committee we will be transmitting all the agenda items paper work using electronic transmission. Now when we tried this three or four years ago there was, "You won't get me doing that." It has moved on from there. We have members, whom I would have thought would have been totally resistant to the use of this technology, ringing me up and saying,"We are into e-commerce. Why are you not doing more to help us on this?" It is quite amazing. You get some very big surprises in this. Some people have bitten the bullet. They may have a son or a daughter who has helped them and they have got hooked on it.

Chairman

  158. Or your wife.
  (Mr Gill) Is there any reason why the wife might be more in favour of going into technology? I had better not go into that!

  159. In my constituency the filling in is often done by the wife.
  (Mr Gill) That is right. But it is the training. I do not know what happens there. It is breaking down this barrier, almost of fear or something, that they cannot control.


 
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