§ 10. Sir Robert Smith (West Aberdeenshire and Kincardine)What decisions his Department has taken regarding the Agenda 2000 agreement as it affects the method of payment to farmers of the beef and dairy national envelopes and the successor scheme to hill livestock compensatory allowances; and if he will make a statement. [87523]
§ The Parliamentary Under-Secretary of State for Scotland (Mr. Calum Macdonald)No decisions have yet been taken pending the assessment of responses to earlier consultations and the adoption of the necessary European Union implementing regulations. From 1 July, this will be a matter for the Scottish Parliament
§ Sir Robert SmithDoes the Minister recognise that the failure to take a decision means that farmers will face uncertainty? They have enough problems without lacking certainty, which enables them to plan for the future. Will he at least make a commitment that, if there is any delay in the introduction of the new scheme and because of that uncertainty, a transitional scheme for HLCA payments will keep the cash flow going so that farmers at least do not face the penalty of late payments?
§ Mr. MacdonaldI can give a commitment that we shall try to provide a transitional scheme. The delay has been caused by the fact that the final detailed set of European Commission regulations is not yet ready; but I assure the hon. Gentleman that, when they are available, we shall consult widely on them with the farming community. The matters that we discuss will include the change from headage to area-based payments of HLCAs, and we shall take the results of the consultation very much into account.