Select Committee on Environment, Food and Rural Affairs Seventh Report


4  Conclusion

26. The Government's decision raises a number of questions and concerns. As it stands the Single Payment Scheme in England, and the way in which it differs from the approaches taken in the rest of the United Kingdom, will have practical impacts which will cause economic and environmental effects. It is not clear that full account has been taken of those effects in Government decision-making to date. Research is needed, and if unexpected distortions are uncovered changes in policy may be required. A further concern is whether or not the Rural Payments Agency is equipped to cope with the change.

27. Moreover, having made the 'headline' decision about the basis of the Single Payment Scheme the Government has now turned its attention to the detail of the Scheme - for example, by issuing a consultation documents about cross-compliance and about the national reserve and other matters.[34] Here there are a number of highly contentious and difficult issues to resolve. We intend to return to this subject in the second part of our inquiry, to be conducted in due course. At that time we will address issues including:

·  Cross-compliance, and what public goods are expected to be delivered in return for continuing public support for agriculture;

·  The particular details of what will be required of farmers under an entry-level scheme; and

·  The specific issues faced by sectors such as orchards, forestry, keeping horses and others.


34   Defra (2004) Consultation on proposed and possible measures for implementation of cross compliance in England, Defra, issued 29 March 2004; Defra (2004) Consultation on options under the Single Payment Scheme in England in regard to operating a national reserve, entitlement trading and the initial allocation of entitlements, Defra, issued 2 April 2004. Back


 
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