Defra Secretary of State David Miliband announced in the House of Commons today that the compensation due to sugar beet growers as a result of the reform of the EU sugar regime will be paid in full to the growers in 2006, rather than being added to the single payment pot.
The decision has been welcomed by the NFU as the only sensible thing to do, given the over-riding need to get the Single Payment System working smoothly, and the fact that adding sugar to the mix at this stage could only have risked still greater confusion, complications and delay.
An NFU spokesperson said: “This is a pragmatic decision which recognises the realities of the mess that the Government has got itself into and which should be welcomed, not only by the sugar sector, but by the whole industry.
“We look forward to further discussions with the Government on the arrangements to apply in 2007 and beyond.”