Scotland’s new rural economy secretary, Fergus Ewing, yesterday pledged to get the government’s failed farm payments IT system on a “proper footing”.
Following his first meeting with the National Farmers Union for Scotland (NFUS), Mr Ewing said it was his “top priority” to sort out the problems with the £178million IT system set up to process and administer EU subsidy payments to farmers.
“This is my top priority. What I want to do is get matters sorted out,” he said.
“All eligible farmers and crofters, unless they have opted out, should have now received a substantial payment from the Scottish Government, either through the new system of a Scottish Government loan. But it is clear that payments haven’t been made quickly enough.”
He said he had met with “key people and stakeholders” involved with the Common Agricultural Policy (Cap) – the farm subsidy scheme – to hear about their experiences and to listen to their views.
“I hope and I expect to establish a very good, close and constructive working relationship with my colleagues in the NFUS and look forward to working with them and the agricultural industry as a whole,” he added.
NFUS president Allan Bowie, who farms in Fife, said Mr Ewing’s appointment came at a hugely challenging time for the industry and government had “much unfinished business” to do with regards its farm payments system.
He said: “We want outstanding support payments delivered to farmers and crofters before the payment window closes in June. And we are looking to the cabinet secretary and his team to ensure we learn from the mistakes that have been made so that they are not repeated. It is important that a clear timetable for future support payment delivery is set and adhered to.”
Mr Bowie also called on Mr Ewing to make sure any government legislation was not “gold-plated” to the detriment of Scots farmers and crofters.
He said: “The income pressures on Scottish farming businesses are intense, regardless of what sector they are operating in. Actions and decisions taken by Scottish Government from now on should be judged on how they will impact on the competitiveness of farmers.”
Mr Ewing will visit a farm in Haddington, near Edinburgh, later today.
Background: Scottish Government under fire
The Scottish Government has come under fire for its handling of farm payments.
In a normal year farmers and crofters would receive their subsidy monies in December.
However, a new government IT system to handle payments has been beleaguered with problems from day one and farmers have only received some of the money they are due.
The government is now in a mad rush to administer the remainder of payments before June 30, otherwise it faces a hefty fine from the European Commission which could be as much as £125million.
According to NFUS the delay in payments has caused a serious cash-flow crisis in the farming sector and the industries which supply it, such as tractor dealers and animal feed merchants.
The troubled IT system, which is estimated to be costing around £178million to create, was also at the centre of controversy after one of its contractors was found to be employing staff from his own employment agency for the project.
An Audit Scotland report into the system reported a conflict of interest where one of the project leaders “could benefit financially from decisions he had an influence over”.
Earlier this month the government was forced to extend the deadline for submitting this year’s farm subsidy application forms, after farmers reported more problems with the IT system.
