HC Deb 29 January 2002 vol 379 cc248-9W
Mr. Watts

To ask the Secretary of State for Environment, Food and Rural Affairs what penalties are imposed on farmers who make mistakes when they are filling in claim forms for farming subsidies; and whether farmers can rectify mistakes on claim forms without a penalty being imposed. [28363]

Mr. Morley

The penalties imposed vary according to the type and severity of the mistake. The penalties applied for the 2001 scheme year are detailed in Annex 7 of the 2001 Integrated Administration and Control System Explanatory Guide, copies of which are being placed in the Library of the House. A summary of Annex 7 follows:

Part 1. Applications received after the closing date 1–25 calendar days late. The applicant will lose 1 per cent. of their entitlement to aid for each working day by which the application is late and for each scheme to which the application relates. Over 25 calendar days late. The applicant will lose their entire entitlement to aid for each scheme to which the application relates.

Part 2. Inaccuracies discovered in areas declared Area found is more than declared. No penalty, but the applicant's entitlement will be based on the declared area. The area found is less than declared. The applicant's entitlement will be based on the lower figure. In addition this lower figure will be adjusted as follows: if difference is more than 3 per cent, or 2 hectares, but not more than 20 per cent. of the area found, the adjustment will be twice the difference found. If the difference is more than 20 per cent., no area-linked aid will be granted.

Part 3. Inaccuracies discovered in number of eligible animals Number of animals found is more than declared. No penalty, but payment will be based on the number declared. Number of animals found is less than declared. (In cases where a claim covers a maximum of 20 animals.)

  1. (i) Difference between numbers found and declared is one or two animals. The applicant's entitlement will be based on the number found, but rate of premium adjusted by the percentage difference found.
  2. (ii) Difference between numbers found and declared is three to four animals. The applicant's entitlement will be based on the number found, but rate of premium adjusted by twice the percentage difference found.
  3. (iii) Difference between numbers found and declared is more than four. No premium will be paid under the scheme concerned.
Number of animals found is less than declared. (In cases where a claim covers 21 or more animals.)
  1. (i) Difference between the number declared and found is not more than 5 per cent. of the number found. The applicant's entitlement will be based on the number found, but rate of premium will be reduced by the percentage difference found.
  2. (ii) Difference between the number declared and found is more than 5 per cent, but not more than 20 per cent. of the number found. The applicant's entitlement will be based on the number found, but rate of premium reduced by twice the percentage difference found.
  3. (iii) Difference between the number declared and found is more than 20 per cent. of the number found. No premium will be paid under the scheme concerned.

Mistakes Mistakes in area aid applications and livestock claims which can be classified as "obvious" according to European Commission guidelines, and where the farmer acted in good faith and there is no risk of fraud, can be rectified without penalty at any time, and are summarised as follows. All other mistakes attract the penalties listed in Annex 7 of the 2001 Integrated Administration and Control System Explanatory Guide which is summarised in Parts 1–3.

Types of obvious errors, which can be rectified (i) Errors of a purely clerical nature, which are obvious during a simple examination of the claim, i.e.: boxes not filled in or information lacking erroneous statistical information (ii) Errors detected as a result of a contradiction appearing in a more in-depth examination (manual or computerised) of the claim, which compares information (including supporting documentation, such as a map) submitted in the same claim, i.e.: arithmetical mistakes inconsistencies between the information provided on the same form (for example, a parcel declared twice in a single claim); parcels declared for two different types of usage (iii) Anomalies involving parcel numbers or references which are detected during the crosscheck of the claim with databases, such as the parcel identification system, i.e.: figures reversed (parcel number 1169 instead of 1196 mistakes in the map reference number number of neighbouring parcel given, resulting from map reading error.