Farmers urged to challenge Scottish government over CAP failures

NFU Scotland President Allan Bowie said there are "deep flaw"s within the CAP futures programme
NFU Scotland President Allan Bowie said there are "deep flaw"s within the CAP futures programme

MSPs have been urged to challenge the government over the 'flawed delivery' of CAP support payments for 2015.

Scottish farming union NFU Scotland said they also urged them to establish whether the IT system will "ever be fit for purpose and capable of delivering payments accurately."

The call comes ahead of the Scottish Parliament’s Public Audit Committee taking evidence tomorrow on Scottish Government’s Common Agricultural Policy (CAP) Futures programme – the IT programme that has failed in its delivery of CAP payments to farmers and crofters.

NFU Scotland asked the Scottish government if it is in a position to provide clarification on how fixes to the IT system are progressing in order to deliver outstanding 2015 payments to farmers and crofters.

'Deep flaws'

NFU Scotland President Allan Bowie said there are "deep flaw"s within the CAP futures programme.

"Its inability to accurately deliver 2015 support payments in a timely manner, placed the whole rural economy in jeopardy last spring," Mr Bowie said.

"Audit Scotland has questioned whether the CAP futures programme will ever be fit for purpose.

"This evidence session provides MSPs with an opportunity to drill down on the reasons for that failure and for key Scottish Government officials to identify what is being done to rectify the failings.

"The blunt truth is that, as we near the end of September, there are almost 700 farmers and crofters who have yet to receive some or all of their 2015 basic payments.

"It is unacceptable that technical glitches hinder the ability of officials to give an unambiguous reason to claimants as to why they have not been paid"
"It is unacceptable that technical glitches hinder the ability of officials to give an unambiguous reason to claimants as to why they have not been paid"

"Combined with balance payments outstanding from other schemes, that means tens of millions of pounds are still missing from the Scottish economy and the flawed IT system is primarily to blame.

'Technical glitches'

"It is totally unacceptable that technical glitches still hinder the ability of officials to give an unambiguous reason to claimants as to why they have not been paid, as well as a clear timetable for when their payment will be received," Mr Bowie said.

"In addition to this, many businesses that have received a payment in full or in part for 2015 schemes are yet to receive an official statement confirming how their payment has been calculated and what schemes each payment relates to.

"That is vital for tax and accounting purposes and Scottish Government must give a date as to when these notifications will be issued.

"Last week, Cabinet Secretary Fergus Ewing announced that there is to be a national loan scheme launched shortly which will provide a very welcome tranche of funding into the rural economy in November – a move welcomed by NFUS.

"This nationally-funded scheme will inject around £300 million into the rural economy following an extended period of stagnation as a result of low commodity prices across the board as well as the delay in 2015 payments.

"However, it must be acknowledged that this measure, however welcome, is an admission that the IT system is still incapable of delivering CAP funds in a timely and effective manner for the 2016 payment run.

"This evidence session provides an opportunity for MSPs to identify what is being done to address that.

'Urgently communicate'

NFUS understands that of around 18,300 businesses eligible to receive CAP support, 17,000 will receive a letter from Scottish Government this week inviting them to opt in to the 2016 national loan scheme.

"It is imperative that Scottish Government urgently communicates to the 1300 businesses who are not being offered loans why they are not being included in the national scheme and what measures will be put in place to support them," continued Mr Bowie.

"If this is the same group of businesses yet to be supported from 2015 arrangements then it is unacceptable that they should be punished financially again when the inability of the IT system to properly process their claims is at the heart of the problem.

"If the delay in payments and IT problems are to be a chronic fixture in the future, then claimants must be updated on a regular basis on how any fixes are progressing and ultimately when they can realistically expect to receive payment," Mr Bowie concluded.