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Rural Payments Agency

My Lords, on the last one, no. No cuts have been made in the State Veterinary Service. The other morning, ““Farming Today”” lined up someone effectively to call me a liar. I have made statements in this House, and they have been made in the other place, to the effect that there have been no cuts in the State Veterinary Service; in fact, it has had £16 million more this year than it had last year, and £3 million was a resource figure swapped over for capital. The total budget stayed the same. I have to knock this one; there have been no cuts whatever. People outside are worried that we are playing fast and loose with food safety and animal welfare. It is simply not true. The State Veterinary Service has not been affected. On the other issues the noble Lord asked about, the target we have set is the European Union one: to pay 96.14 per cent of the money by 30 June next year. As we said in the Statement, the chief executive has made it clear that he cannot make the full payments by that date and hence we have had to look at partial payments. We paid out to within 1 per cent of that figure by June of this year; some 95 point something per cent of the money was paid out by June. The 4,756 people who have received a partial payment for 2005 should have received 80 per cent of the money because this year’s partial payments were set at that percentage. The top-up is therefore 20 per cent. Obviously it is true that to work to that target next year suggests by implication that there would still be some money not paid out. However, the European Union target is to use the window between 1 December and 30 June to pay out 96.14 per cent of the money. Beyond that, we could be subject to penalties. For this year we have said that where we have not paid out, we will make interest payments from 30 June, and indeed we are doing that.