Fergus Ewing, Scotland's Rural Minister, has admitted there are still 'significant risks' some EU subsidy payments will be delayed a result of ongoing IT issues.
Holyrood's Rural Economy Committee has scrutinised the issue. It heard the £178 million IT system for administering Common Agricultural Policy (CAP) money is still not able to handle some payments.
Mr Ewing said he has sought assurances from IT contractor CGI's UK president Steve Thorn on the IT system 'to make clear the seriousness of the situation'.
He added Mr Thorn is 'personally overseeing key contingency steps to deliver the system'.
Mr Ewing told Holyrood's Rural Economy Committee, 99.7 per cent of eligible businesses have now shared £343 million of 2015 “pillar one” payments which cover direct support to farmers and is the largest element of CAP funding.
The Minister added he is “firmly focused” on meeting the Government's commitment to complete the processing of 2016 payments by the end of June of this year after receiving assurances from CGI on the IT system.
'Significant risks'
The Cabinet secretary said: “I'm seeing progress but there remains significant programme and technical risks which I remain absolutely focused on.
“I'm seized of the ongoing challenges as we approach our key deadlines but notwithstanding these challenges I expect the programme to deliver the necessary components for CAP compliance within its £178 million budget.”
The committee heard 79 per cent of businesses eligible under the less favoured area support scheme have received payments, with 2,408 businesses outstanding, while 77 per cent of those entitled to land managers options payments have been paid, with 471 cases still being dealt with.
'Flawed IT system'
NFU Scotland says every farmer will remember 2016 as a year when the Scottish government's 'flawed IT system failed to deliver' the subsidy CAP payments, 'damaging' the rural economy.
NFU Scotland President Allan Bowie said: "The level of frustration and lack of trust in Scottish Government's ability to properly deliver payments across all schemes in a timely manner remains unprecedented.
"We want to see 2017 bring a step change in Scottish government’s delivery and a return back to a more normal situation.
"On the positive side, there was a marked improvement in the scheme application process. We need that improvement to continue when 2017 online applications go live in spring.
"But where the Scottish government must improve is in setting a clear timeline for all 2017 payments so that farmers can manage their cash flows. And when payments are made in 2017, we must see those followed by information to claimants, clearly stating what they have been paid and how it has been calculated."
