HC Deb 20 November 2003 vol 413 cc935-6
2. Mr. Gordon Prentice (Pendle)

What steps she is taking to reduce the time taken by the Rural Payments Agency to make payments. [139829]

The Minister for Rural Affairs and Local Environmental Quality (Alun Michael)

The RPA is undertaking a change programme due to deliver in 2005–06. The programme is the cornerstone of DEFRA's strategy for achieving 95 per cent. electronic service delivery capability for common agricultural policy schemes. It will reduce the average time taken by a claimant to complete a CAP claim. All valid claims submitted electronically will be paid within two weeks of the start of the payment window, or three weeks from receipt where no payment window exists.

Mr. Prentice

It is reassuring to hear about the change programme, and I wish the Minister well, but some claims are taking for ever to process. The Rural Payments Agency compensates food manufacturers for the difference between European Union and world sugar prices. That may be all very well for manufacturers making a million Mars bars a day, but for specialists making assorted biscuits, with a wide product range that is constantly changing, the complexities of the system are truly daunting. Is the Minister aware of the problem, and would he be willing to meet me along with representatives of the interests that are being crushed by this bureaucracy?

Alun Michael

I shall be happy to meet my hon. Friend. I am aware of the complexities of the programme, but it is worth mentioning that £750 million has been paid to farmers in the last month under livestock and arable schemes, at the opening of the relevant payment windows. We are significantly improving performance in a number of ways. I know that there were some teething problems when the RPA's new integrated system "Oregon Live" went live on 25 October, but I think that that too will help to improve the agency's record.

Michael Fabricant (Lichfield)

The Minister has not really answered his hon. Friend's question. He rightly encourages diversity in farming. The biscuit manufacturer mentioned by the hon. Member for Pendle (Mr. Prentice) is typical of those in many small industries: he used to be a farmer, and his biscuits are home-baked. He has a wide range of not only biscuits, but sweets and chocolates. The trouble is that a lot of forms must be filled in, one for each line. That may be easy enough when 10 million Mars bars are involved, as the hon. Gentleman said, but those who make products in small numbers must fill in a different form for each one. How can the Minister aggregate the system to encourage the diversity in farming that both he and Conservative Members want?

Alun Michael

We are enthusiastic about simplifying everything that can be simplified, but we must meet the requirement under European legislation to account for public money going to those producers. We are always happy to look at industry's suggestions on ways in which things can be simplified, but we must meet those requirements.

Mr. Owen Paterson (North Shropshire)

IACS—integrated administration and control scheme—forms have to be submitted in April and May, but the RPA's customers sometimes find that there are serious payment problems many months later, after evidence may have been harvested. Can the Minister guarantee that all IACS forms will be validated by late summer so that farmers are not hit by unexpected cash-flow problems later in the year?

Alun Michael

I welcome the hon. Gentleman to his new responsibilities. As he knows, giving a guarantee is always unwise in this business, so I urge him to seek guarantees only when they can realistically be given.

In 2003–04, the Rural Payments Agency has a target to pay 80 per cent. of all valid non-IACS claims within 28 days of the claim becoming processable, and all claims within EU deadlines or, in their absence, 60 days. I appreciate the hon. Gentleman's point about complexities and timing, and we are always willing to look at specific problems that arise as part of the change programme that I referred to earlier. I am happy to look at his specific points but we must achieve the work output within the requirements of the common agricultural policy systems.