NFU responds to Welsh draft budget
"Whilst I understand that the Welsh Assembly Government and the Rural Affairs department in turn will have to look hard at how it manages cuts, the strategic role that farming plays in the economy of Wales, in terms of food security and underpinning the health and well being of the Nation is vital," NFU Cymru President Ed Bailey said in response to today’s draft budget announcement. He continued, "This is not to mention its potential to drive forward the food and drink sector, to mitigate climate change and to contribute to renewable sources of energy. Basically, the industry is being asked to produce more but to impact less and this is a challenge Welsh farmers are up for provided their competitiveness is not compromised by the drive to cut spending."
The Welsh Assembly Government today unveiled its draft budget for the next three years. NFU Cymru recognises that it faces a huge financial challenge with some £900m less to spend next year following cuts imposed as part of the UK Government’s spending review in October.
The Welsh Assembly Government’s budget is set to fall by 3.1% per year on average and will be £1.8bn lower, in real terms, by 2014/2015.
Set against this financial backdrop the Welsh Assembly Government draft budget laid before the National Assembly today signals a period of financial austerity from which the Rural Affairs Department is not immune.
Today’s announcement sets the Rural Affairs budget for 2011-12 at £136.6m down 4.6% on 2010-11. Revenue funding is set to decline by 2.3% to £123.7m and capital funding by 23.3% to £12.8m.
Ed Bailey said, "Given the current financial climate it was inevitable that there would be a reduction in spending on Rural Affairs in both actual and real terms but I welcome the fact that there is a commitment to fully protect the area of the budget that supports the payment of Single Farm Payments which are fully funded by the EC and which are so vital to farm income. I hope that this will enable Rural Payments Wales to continue to issue payments early in the payment window.
"I welcome too, the pledge to fully protect funding for the Welsh Rural Development Programme. The eradication of bTB remains a priority for NFU Cymru and I am relieved that this is to remain a key delivery programme within Rural Affairs. Whilst I take comfort from the fact that there are aspects which appear to have been safeguarded it remains incumbent upon both the public and the private sectors that we all look to efficiency savings, delivering the desired outcomes at lower cost and further examine in the context of the red tape review, the scope for greater coordination and the avoidance of duplication. We all have to think outside the box in Wales to make the best possible use of resources at our disposal and so that we don’t undermine the farming industry’s competitiveness and compromise our ability to deliver on strategic objectives key to the Welsh people."
