Scotland’s farming union is seeking an opinion from legal counsel on whether it can challenge in the courts a controversial UK Government decision to share with other nations nearly £190million intended to address Scottish Cap funding shortfalls.
It also yesterday wrote to the European Commission and Europe’s Agriculture Commissioner, Dacian Ciolos, seeking their views on whether the UK’s stance is acceptable. The revelations came as Rural Affairs Secretary Richard Lochhead told the Scottish Parliament that UK Environment Minister Owen Paterson had delivered a slap in the face for Scotland’s agricultural sector.
The £190million has been given to the UK by Brussels as a so-called convergence uplift from 2014-2020 to make good funding issues that have given Scottish farmers one of the lowest per hectare subsidy payment rates in Europe.
But instead of sending all the cash north of the border – as had been urged by SNP, Labour, Tory and Liberal Democrat politicians in Scotland – Mr Paterson has shared it with England, Northern Ireland and Wales.
NFU Scotland president Nigel Miller said Scotland’s farmers had a justifiable reason to expect they would get the cash to resolve a financial disadvantage which gives them an average £84.44 a hectare, against the EC’s target of £165.15. Rates elsewhere in the UK are all above the target, with England at an average of £223.78 a ha, Wales at £208.58 and Northern Ireland at £286.21. Scotland’s average in 2019 is unlikely to exceed £108.11.
The union is now seeking advice on whether Mr Paterson has acted legally and within the spirit of commission’s stance on convergence, which aims to take per hectare payment across Europe to the same level.
He added: “We have written to the commission to seek clarification on what safeguards it has in place to ensure transferred budgets are used to deliver true convergence within the recipient member state. The principle of moving towards parity of area support on land being used for similar agricultural production is fundamental to a fair Cap, and a common economic operating environment for all Europe’s farmers.”
Mr Lochhead said the Westminster deal delivered just 16% of the convergence funds, despite it being clear that the UK’s uplift was as a direct result of Scotland’s low payments.
Mr Lochhead said the deal went against the intentions of the EU in addressing the problem of regions and member states with lower-than-average payments. It also defied the wishes of the Scottish Parliament.
Mr Lochhead acknowledged a budget review offered by Mr Paterson in 2016, but the impact of that would not be delivered until 2021.
The impact from the smaller-than-expected convergence uplift is almost certain to now result in the Scottish Government having to use the maximum 15% deduction to top up rural development funds from the direct payments budget.
Mr Lochhead maintained the UK’s claim of a 7.8% increase in budgetary cash terms to £403.52million for 2014-20 for pillar two support was in reality a 5.5% decrease in real terms as the allocation matches what was paid out between 2007-13. He is expected to launch a consultation on the level of the money transfer soon.
A spokeswoman for UK farming ministry Defra said Scottish farmers would continue to receive the highest per farm payment in the UK and one which is at the top of EU farm league.