Oilseed Harvest (Hansard, 27 February 1992)

§ Mr. Gummer

A new EC support system is being introduced because the existing arrangements were found to be incompatible with GATT rules. The scheme will apply to rapeseed, sunflower seed and soya bean crops harvested in summer 1992. The scheme will provide a payment related to the world price made at a flat rate per hectare and paid direct to growers.

The agriculture departments will be operating the scheme and will issue explanatory booklets and application forms as soon as possible. These will be sent to all known oilseed growers. Others will be able to obtain copies from the Ministry's regional service centres and the offices of other agriculture departments. I will place copies in the Libraries of the House.

The general rules of the scheme were adopted in December 1991 in council regulation 3766/91. A Commission regulation establishing more detailed rules is expected to be published shortly. When it is, I will make a further announcement. Growers sowing seed after the entry into force of the Commission regulation (three days after the date of its publication in the Official Journal) will be subject to certain restrictions on the land on which they may sow if they are to be eligible for aid. They will only be eligible if they plant on arable land. That is defined in the Council regulation as land cultivated during the period 1989–90 to 1990–91, including land shown to have been fallowed in conformity with a publicly funded scheme, temporarily under grass as part of an arable rotation or exceptionally arable land fallowed throughout this period".

The intention of this provision is to prevent the ploughing up of permanent grassland.

In addition to crops harvested from certified seed, home-saved seed will be eligible for aid, as will seed grown for industrial use and seed grown for sowing. Various requirements in relation to these matters, which are laid down in the Commission regulation, are being waived this year because it would be inequitable to apply them after growers have taken decisions on what seed to sow for the 1992 harvest. Specific obligations will however apply in future years, and these will be publicised in advance of growers' decisions on plantings for 1993 harvest.

Growers' completed applications must be received by the agriculture departments by 30 May. The Commission regulation provides for applications received in the following 30 days to suffer a 1 per cent. cut in the aid for each day that they are late up to a maximum cut of 30 per cent. of the aid. Applications received thereafter will be ineligible for any aid. Applications must be supported by a map—from the 1:10,000 Ordnance Survey series, or a map of an equivalent quality—showing the precise location of the crops.

After growers' applications have been checked, a first payment (of up to 50 per cent. of the total) will be made by 30 September. After the grower has submitted a "harvest declaration", further checks will be made.

The remainder of the aid will be paid by the end of March 1993. There will also be some payments, on which the Commission has not yet made a proposal, to growers who hold the crop off the market, and thus help to ensure orderly marketing.

613W

Different rates of aid will be paid in England, Scotland, Wales and Northern Ireland, to reflect their different average yields. Last autumn's and this spring's sowings will receive the same rate of aid. This may change for 1993 crop.

The regulations contain a number of measures designed to penalise inaccurate applications and to prevent fraud. Penalties for fraud can include disqualification from support in the year following the committal of certain offences. A statutory instrument will be introduced providing in particular for powers of entry and inspection.

This scheme is free-standing. There is no linked set-aside requirement, nor is there any simplified scheme for small producers.