Memorandum submitted by NFU Cymru (RPA
01)
1. Thank you for your emailed letter of
3 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.
4. 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.
5. 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.
6. The issues involved in making an
interim payment to farmers, in advance of the now February target.
7. 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.
8. What impact the RPA's own change
programme has had in the introduction of the new CAP payments
and the agri-environment schemes.
9. In 2001-02 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.
10. Whilst data for Wales' entry-level environment
scheme, Tir Cynnal, was captured on the Single Application Form
completed by farmers by 16 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.
11. The extent to which the RPA's IT
systems have failed to evolve to deliver what is required of them.
12. Our colleagues in England are better
placed to comment on the deficiencies and failings of the RPA's
IT systems.
13. 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.
Mary James
Deputy Director/Head of Policy
November 2005
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