UK Parliament / Open data

Rural Payments Agency

My Lords, I am grateful to the Minister for repeating in the form of a Statement the Answer to the urgent Question asked by my honourable friend in another place. These are very disturbing times. I have tried twice to table a topical Question on this subject. I have raised the issue of the Rural Payments Agency with the noble Lord on several occasions. It is quite right that we should take this Statement today. I find the Statement disappointing. It indicates where there are problems, but my reading of it does not actually give any answers to those problems. I will put some questions directly to the Minister, which I hope he will be able to answer. The Statement refers to,"““focusing resources in the RPA””." What resources are those and how will that be done? It refers to ““removing disproportionate checks””. Which checks are disproportionate and how will that be done? It refers to ““reviewing . . . further steps”” to simplify the process and so that,"““decisions can be made later this week””." Can that decision be made in time for our debate on Thursday, when we shall at least have a chance to look at the issues more fully? The Statement also refers to,"““engaging urgently with the banks and other key stakeholders””." The banking part is key, because so many farmers are finding themselves unable to pay their bills. This Statement is long on problems, but short on facts and information. The Secretary of State accepts that there has been total failure and that the situation within the RPA is unacceptable. There are no reassurances, however, as to how this might be resolved, and no timetable is given. Is it just the mapping end that is not completed? How many farms have had their maps agreed and how many are still outstanding? Is it just that the RPA payment system is unable to cope? Is it that the IT system is not up to the job that it has to take on? Or is it that the new mapping exercise does not fit in with the previous maps that were held by many farmers who received historic claims? Considering the delay, will the department consider delaying the date—16 May 2006—by which the new applications for single farm payments are usually made? I referred to engaging with banks. I understand that many farmers are at their wits’ end and I have referred one case to the Minister. I am very grateful to him for taking it up. We should not, however, be in the position of having to take up individual cases because an agency has totally failed to do what it should do. In engaging with banks, will the Government consider providing an emergency fund where perhaps the banks are not willing or able to extend credit any further? As one tenant farmer said:"““I am close to my overdraft limit, with the rent to pay on 5 April, and with no single farm payments money to hand””." I have also contacted the Farm Crisis Network, which records that farmers have been calling it regularly over the past three weeks, very distressed that late payment of their subsidies is causing cash-flow problems. It has a knock-on effect not only on them but on their suppliers and the banks. Many callers are saying that fuel suppliers, feed merchants and others are refusing to allow farmers any more supplies or credit and that some banks are refusing to increase their overdraft facility. I ask the Minister what the Government will do about that and whether the Government will pay interest on the money that is outstanding. I understand that the helpline has taken 50-plus cases in the south-west alone. In each of those cases the problems have been exaggerated because of the late payment under the single farm scheme. These cases affect not only the farmers but their families. Not all of the calls in the south-west were received by the helpline itself; many were received directly at the volunteers’ homes. They are even looking into a case where a farmer has committed suicide, partly caused, they believe, by the anxiety of this terrible state of late payments. I know that in another place some Members have called for the Minister’s resignation. No doubt he will consider his own position. He may feel it unfair that he should be the one to be singled out and in the firing line when the responsibility clearly lies with the Secretary of State herself. I have asked some very real questions. I expect answers to those questions. If they are not forthcoming, we will certainly expect them when we debate the matter further on Thursday.
Type
Proceeding contribution
Reference
680 c600-2 
Session
2005-06
Chamber / Committee
House of Lords chamber
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