Supplementary memorandum submitted by
Tenant Farmers Association (RPA Sub 10)
INTRODUCTION
1. This written evidence sets out a chronology
of events, from the perspective of the Tenant Farmers Association,
starting with the 2003 Common Agricultural Policy (CAP) Reform
Agreement and ending with the decision to make partial or Interim
payments in relation to 2005 Single Payment Scheme (SPS) claims.
This is set out to aid the Select Committee's Inquiry into the
events that have taken place to get us to today's crisis.
26 JUNE 2003
2. EU farm Ministers agree on reform package
for the CAP and TFA gives its broad support to the package.
9 JULY 2003
3. There was a stakeholder meeting chaired
by DEFRA Minister Lord Whitty. In response to a point raised by
the NFU which is contained in the minutes as follows:
"In implementation the core principles must
be remembered, in particular the need for simplification".
4. Lord Whitty is quoted on page 2 of the
minutes of that meeting as saying:
"simplification was the key".
(see annex 1)[9]
22 JULY 2003
5. DEFRA launches a consultation on implementation
of the CAP Reform including how to apply the single payment. The
covering letter to the consultation document says:
"The Single Payment Scheme can be introduced
in one of several ways. By adopting a regionalised approach, we
have the further option of applying it in the form of an area
payment .... Such an approach would have the benefit of extending
cross compliance to more land than the basic approach—linked
to historical entitlement—but it would also have very significant
re-distribution effects within the agricultural sector. There
has been little interest shown in this option to date but views
are invited as to whether we should adopt an area payment approach
in England."
6. There is clearly no talk of a hybrid
scheme here. It was quite clear to TFA and other organisations
that up to this point the preferred route being looked at was
the historic route. Indeed DEFRA officials were clearly of a mind
to steer Ministers in that direction.
AUGUST 2003
7. The CLA issues a paper to its members
exploring the possibility of supporting Regional Average Payments
as a means of implementing the SPS. The conclusion of that paper
says:
"We are fundamentally a land based, property
rights organisation. We have campaigned vigorously for these rights
during the debate of the last 12 months. In this campaign we elevated
the two issues to the top of our priorities: the initial allocation
of payments to the active farmer/occupier in 2005 and the attachment
of payments to land. Regional Average Payments offer both; IHE
[Historic allocation] offers neither. Thus the recommendation
from this one staff member is option E above [to support the Regional
Average Payments approach]. However, quite properly the decision
is for members to take, not staff."
(see annex 2)[10]
12 SEPTEMBER 2003
8. There was a Stakeholder meeting Chaired
by Senior DEFRA official, David Hunter at which was discussed
a draft programme plan for implementation of the CAP Horizontal
Regulation in England (ref: Cap Programme Plan 11.17). This had
been circulated to stakeholders on 9 September 2003 under cover
of a letter from DEFRA official Tony Higgs.
9. This argued for:
" ... an effective management and governance
structure that is kept as light as possible consistent with the
enormous number of interests"
10. It provided that David Hunter would
be the Senior Responsible Officer of the programme. David Hunter
would in turn report to Andy Lebrecht [DEFRA] to ensure implementation
was secured.
11. Section 6 dealt with potential risks.
Three of these were as follows (listed with DEFRA's proposed solutions):
(a) Lack of Resources in the RPA (Early estimate
of resource requirement and agree bid with DEFRA)
(b) RPA unable to deliver payment and inspection
systems on time (Early engagement with RPA at senior level and
ongoing consultation as policy framework is agreed leading to
clear remit)
(c) IT delivery systems prove inadequate
(Early review by delivery agents of system capability).
12. At Section 8 the plan says:
"RPA has produced an initial assessment
of the resource implications for the Agency of implementing the
Horizontal Regulation (Bill Duncan's minute to David Hunter of
2 June) This suggests very substantial additional costs to implement
CAP reform of between £37 million and £63 million over
four years depending on the nature of the agreement and the ongoing
steady state annual costs thereafter of between £1.8 million
and £8.7 million. The assessment also emphasises the significant
margin of uncertainty associated with the estimates and with the
assumptions concerning the precise terms of the reform agreement
and the way it is implemented domestically."
(see annex 3)[11]
19 SEPTEMBER 2003
13. The TFA writes to Lord Whitty to express
concerns about the growing support for a system of Regional Average
Payments. CLA and RSPB press articles are seeking to influence
the direction of policy towards a Regional Average Payment.
(see annex 4)[12]
1 OCTOBER 2003
14. The government extends the consultation
on options for implementation until 24 October.
8 OCTOBER 2003
15. There was a Stakeholder Meeting chaired
by David Hunter. The minutes of that meeting say:
"Several present sought greater clarity
as to what exactly might be possible within the scope of the agreed
text: whether regionalisation within England, or sectoral distinction,
or LFA/Non LFA distinctions would be possible. And how far a hybrid
system could be constructed—for instance one which used
an historic basis for livestock and an area basis for arable crops
[the CLA preferred option] ... For a discussion on 17 October
the Chairman [David Hunter] agreed to prepare a brief summary
of what DEFRA understood to be possible ..."
16. At that meeting NFU and TFA said they
supported the Historic route but CLA said it was still making
up its mind but could see the attractions of the area payment.
17. Although not in the minutes George Dunn
recalls Bill Duncan from the RPA saying that if DEFRA chose anything
other than a straight historical model or a straight Regional
Average Payment system then RPA would have severe difficulties
in implementing the system.
(see annex 5)[13]
17 OCTOBER 2003
18. The paper on the options was prepared
and discussed. David Hunter chaired the meeting and John O'Gorman
(DEFRA official) took stakeholders through the options. There
were no minutes of this meeting but George Dunn recalls David
Hunter saying that the hybrid options were the most complicated
and the dynamic hybrid options would present the most difficulty
indicating that it would be madness to go down a hybrid route.
(see annex 6)[14]
13 NOVEMBER 2003
19. The TFA and CAAV met Lord Whitty to
follow up George Dunn's letter of 19 September 2003. It was clear
that the Minister was veering away from a purely historical approach
for fear as to how it might look in years to come.
1 DECEMBER 2003
20. There was a stakeholder meeting chaired
by Lord Whitty. Lord Whitty said he had an open mind on how the
Single Payment Scheme should be implemented and asked for views
from Stakeholders to ensure he knew were everyone stood. TFA,
NFU and CAAV opted for history. The environmental organisations
tended to support regional average payments. The CLA supported
a static hybrid model.
(see annex 7)[15]
6 JANUARY 2004
21. Lord Whitty gives a steer on BBC Radio
4's Farming Today programme and at the Oxford Farming Conference
that he is against implementation on the basis of history alone.
12 FEBRUARY 2004
22. Margaret Beckett announces dynamic hybrid
as the means to implement the Single Payment Scheme.
20 FEBRUARY 2004
23. TFA meets with Lord Whitty to discuss
Landlord Tenant Concerns of 12 February decision.
27 FEBRUARY 2004
24. There was a Stakeholder Meeting chaired
by David Hunter. Although the TFA can find no minutes of this
meeting George Dunn from the TFA asked what had happened to the
advice provided by the RPA (Bill Duncan) at the Stakeholder meeting
of 08 October 2003 (see above) about the severe problems the RPA
would face in implementing the SPS on anything other than a straight
Historical or Hybrid System. George Dunn was told by David Hunter
that "the RPA would do what the RPA is told to do".
There was no response from the RPA.
22 APRIL 2004
25. Following further lobbying Margaret
Beckett agrees to industry compromise to move to three regions
to improve the situation for non moorland, SDA producers.
2 NOVEMBER 2004
26. DEFRA announces that it is opening up
the Single Payment Scheme to land grazed by horses. This leads
to a 40,000 new applications under the scheme.
3 NOVEMBER 2004
27. At the RPA's Industry Forum meeting
chaired by Johnston McNeill in Reading the RPA expresses significant
concerns to stakeholders about the task ahead in mapping all the
new land including the land which will come in from horse graziers—at
that time an unknown quantity.
28. RPA also said it was its intention to
make payments under the Single Payment Scheme as close to the
1st December as possible. It set out a number of risks that would
delay payments including:
(2) Technical problems with computers and
the validation process.
(3) Impact of the RPA's change programme.
19 JANUARY 2005
29. The RPA issues a press statement saying:
"The Rural Payments Agency can confirm that
the most probable date for payments to start is February 2006.
Therefore this is the earliest date to which farmers, their financial
advisers and banks should plan".
9 MARCH 2005
30. At the RPA's Industry Forum meeting
chaired by Johnston McNeill Simon Vry (RPA Business Development
Director) reiterates the aspiration to start payments in February
2006 but restates the risks referred to at the previous meeting
of the industry Forum.
31 JANUARY 2006
31. Lord Bach announces that:
"English farmers will start receiving full
payments in February under the Single Payment Scheme".
"A total of £1.6 billion will be paid
directly into farmers' and growers' bank accounts or by payable
order, starting at the end of February and with the bulk complete
in March. All payments will be well within the window set by EU
legislation which runs until 30th June 2006."
8 FEBRUARY 2006
32. George Dunn from the TFA was asked to
give evidence to the Government Gateway Review on the performance
of the RPA. The conclusions of that review have never been seen.
16 MARCH 2006
33. DEFRA announces that RPA will not make
the bulk of payments by the end of March and removes Johnston
McNeill as CEO of the RPA. He is replaced by Mark Addison who
becomes Acting CEO. Lord Bach introduces weekly meetings with
TFA, CLA and NFU.
19 APRIL 2006
34. Margaret Beckett announces the RPA will
make interim payments "as soon as operationally possible".
DETAILS OF
ANNEXES REFERRED
TO IN
RPA SUB 10*
*(These have not been printed with the evidence)
| Reference | Item
| No of Pages |
| Annex 1 | Minutes of Stakeholder meeting with Lord Whitty (July 2003)
| 1-6 |
| Annex 2 | Country, Land and Business Assn—CLA response to the Defra consultation on options under the CAP reform agreement. (First Draft for consideration). (3 September 2003)
| 1-25 |
| Annex 3 | Copy of Defra's implementation plan (from T Higgs, Single Payment Scheme Unit.) (9 September 2003)
| 1-22 |
| Annex 4 | Letter to Lord Whitty from the Tenant Farmers Association
(19 September 2003)
| 1-2 |
| Annex 5 | Minutes of the CAP reform Stakeholders' meeting 8 October 2003
| 1-3 |
| Annex 6 | CAP Reform—Single Payment Scheme: Options for Regional Implementation. (No date reference.)
| 1-3 |
| Annex 7 | Minutes of Lord Whitty's CAP reform Stakeholder meeting.
1 December 2003.
| 1-5 |
April 2006
|
| |
9
Annex not printed. Back
10
Annex not printed, (confidential). Back
11
Annex not printed. Back
12
Annex not printed. Back
13
Annex not printed. Back
14
Annex not printed. Back
15
Annex not printed. Back
| 
