Memorandum submitted by NFU Cymru (RPA
01)
1 Thank you for your emailed letter of 3rd
November 2005 inviting NFU Cymru to submit written evidence to
the follow up of Committee's earlier report on the RPA (sixth
report of session 2002-03 Rural Payments Agency HC382).
2 As you are aware the CAP Reform agreement has
been implemented very largely on a devolved basis with the result
that in Wales the Assembly's Rural Payments Division has been
responsible for the issues being examined by the rapporteurs David
Taylor MP and Roger Williams MP. Under these circumstances, we
feel it is more appropriate for NFU Cymru to submit a response
separate to that of our colleagues in England on the terms of
reference outlined in your letter.
3 Why the RPA is unable to make payments under
the SPS at the start of the payment window in December
It is anticipated that in Wales, payments will be
made by the Rural Payments Division in respect of all validated
claims during December 2005. The Welsh Assembly have understood
the importance to farmers of issuing payment promptly given the
adverse cash flow implications of switching from the 'old' commodity
payment regimes to the 'new' Single Farm Payment scheme.
4 It was envisaged initially that the full payment
would be issued to farmers in Wales in December 2005 as the National
Reserve has to be calculated and determined on a UK basis the
delay in completing this part of the Single Payment exercise in
any region of the UK has direct consequences for the remaining
parts even though they may have completed the exercise. The RPA's
delay in completing the National Reserve exercise has thus prevented
the Assembly who will complete the National Reserve exercise in
November from making full payments to farmers in Wales in December.
5 The issues involved in making an interim
payment to farmers, in advance of the now February target
The target date for making interim payments in Wales
is December 2005. The key issue for the Rural Payments Division
in Wales is that any interim payments should not compromise the
global ceiling prescribed for Wales given that the National Reserve
assessment is being conducted on a UK basis. The Minister for
the Environment, Planning and the Countryside has recently announced
that in Wales the interim payment will thus be pitched at 80%
less deductions for modulation and any penalties.
6 What impact the RPA's own change programme
has had in the introduction of the new CAP payments and the agri-environment
schemes
7 In 2001/2002 a new computer and software programmes
were installed to handle payments by the Assembly's Rural Payments
Division. Whilst in 2002 this severely disrupted payment schedules
and payments to the industry were in some instances significantly
delayed, since then payments, where validated, have been issued
promptly in the specified payment window. NFU Cymru has received
assurances that the new IT system is sufficiently robust to make
residual SPS payments to farmers in Wales as soon as the UK element
of the calculation is confirmed.
8 Whilst data for Wales' entry-level environment
scheme, Tir Cynnal, was captured on the Single Application Form
completed by farmers by 16th May 2005 the scheme was
not approved by the EC until the end of September 2005. Agreements
are now being entered into payments to producers under the Tir
Cynnal scheme are not expected to start issuing until April 2006.
9 The extent to which the RPA's IT systems
have failed to evolve to deliver what is required of them
Our colleagues in England are better placed to comment
on the deficiencies and failings of the RPA's IT systems.
10 Farmers in Wales have largely been shielded
from the shortcomings of the RPA's handling of the Single Premium
Scheme because responsibilities have been devolved to the Assembly's
Rural Payments Division. It is only those issues which have to
be determined on a UK basis that are likely to impinge on the
Rural Payments Division's ability to make prompt and full payment
in December 2005.
NFU Cymru
November 2005
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