---

Rural Payments Agency

My Lords, I thank the Minister for repeating the Statement made in another place. We are grateful to him for the update. I remind the House of my family’s farming interest. I am disappointed by the Statement because the problems that occurred with the 2005 scheme, which resulted in chaotic late payments, have not been addressed and the Statement does not guarantee that the agency will deliver the 2006 scheme within the payment window. I am sure that that disappoints the Minister as well. The 2005 scheme meant a 50 per cent increase in calls to the rural crisis network,farm borrowing rising by £379 million in one year, RPA administration costs rising by £46.5 million—two year’s worth of the hill farm allowance—and £131 million being set aside for EU penalties. It was not a happy situation. Of 2005 single payments, 110,244 were paid in full by 3 November, but that still leaves 4,756 partial payments awaiting top-up. Why has it not been possible for them to be paid? When will the problem be resolved? The Minister said that 50 claimants were awaiting any payment at all. He said that this was due to probate or business liquidation. How many fall into either category? When does he anticipate that these issues will be resolved? The Statement refers to ““dedicated”” teams. When they are established, will an individual be allocated to a farmer or is the RPA working to an overall dedicated team approach? What is the position regarding permanent or temporary staff? The Statement goes on to say that the validation of the 2006 payment scheme has gone relatively smoothly. Perhaps the Minister will share with the House what aspects have not gone smoothly and what has been done to rectify this. The Statement refers to the National Audit Office’s report and reflects the Minister’s intention to build ““helpful guidance””. I have looked again at recommendations 23 to 32. Which of these has been actioned, or has no progress been made to date? Why was Germany, which adopted a similar dynamic system to ours, able to pay its farmers on time and what within our system made that impossible? At the time we had discussions about mapping, IT systems and human error. Were those difficulties also experienced by Germany or do we have lessons to learn from it? Will the Minister confirm that the mapping issues which created great difficulties in last year’s scheme have all been rectified and that the problem will not occur again? Are the IT systems now compatible or is there an ongoing problem? According to the Statement, those to whom the 2006 payment cannot be paid in full will receive a minimum of 50 per cent. To some farmers that will be a disappointment, because this year when they eventually received it, they were paid 80 per cent as a partial payment. Some 95 per cent of hill farm payments were paid. That leaves some 700 of the most pressed farmers without any money to which they are entitled. Further to our debate on the delayed rural development programme yesterday, can the Minister tell us more, or will he acknowledge that those hill farmers may be doubly hit by the cancellation of that project? How confident is the Minister that proper controls have been put in place to ensure that the 2006 system will run smoothly? Has the relationship between the Minister and the RPA chief executive been resolved? In the past there was a certain lack of understanding and accountability. Has somebody been allocated to take overall responsibility and control? In the past, answers to questions on progress have not been forthcoming. Will the Minister ensure that such questions are answered? The 2005 system was riddled with incompetence. We cannot accept that with regard to the 2006 payments. The sum of £131 million was put aside in case the EU called back on that money because the system ran late. Will that be an additional budget deficit to the £200 million that is already forecast for Defra? Finally, is the Minister satisfied that the RPA’s new ““sound footing”” for the future delivery of the single farm payment is in place? Will he share with us what exactly this new ““sound footing”” is? I am grateful to the Minister and look forward to his response.