A breakdown in relations between civil servants and IT contractors is holding up CAP payments to farmers and could cost the UK hundreds of millions of pounds in fines
An inquiry by the Public Accounts Committee has found that failures in a project intended to manage subsidy payments to farmers has caused financial hardship and could end up costing taxpayers hundreds of millions of pounds in financial penalties.
Since 2012, the Department for Environment, Food & Rural Affairs has been developing the Common Agricultural Policy Delivery Programme, along with two partners, the Rural Payments Agency and the Government Digital Service. The intention was to produce an IT system that could run the new CAP payment system set up in 2014. The Programme was originally forecast to cost £155 million, but this has increased by 40% to £215 million. In its report, the Committee concludes the three key bodies involved were unable to work together effectively, highlighting 'dysfunctional and inappropriate behaviour' between senior officials.
The parliamentary committe that scrutinises the work of Defra, the Environment, Food and Rural Affairs Committee, has also produced a report warning that farmers in the UK are at risk of suffering further cash flow problems if the Programme partners cannot solve their differences and fix ongoing problems with the IT systems.
Neil Parish MP, the Committee Chair, said: 'Many producers rely on CAP payments to turn a profit so it is unacceptable that our farmers are still facing lengthy delays to financial support. The Rural Payents Agency introduced an IT system that wasn’t fit for purpose and subsequent errors made in the attempt to fix the problem only caused further delays and confusion for applicants... it is crucial that the RPA works to at least match the target achieved by the previous scheme of 90% of payments made by the end of December each year.'
Read about Sustain's farming policy here.
Published Friday 4 March 2016
Sustain: Sustain The alliance for better food and farming advocates food and agriculture policies and practices that enhance the health and welfare of people and animals, improve the working and living environment, enrich society and culture and promote equity.
