§ Mr. OatenTo ask the Secretary of State for Environment, Food and Rural Affairs what percentage of the current financial year's integrated administration and control system payments have been received by farmers. [30868]
§ Mr. Morley[holding answer 28 January 2002]: As of 23 January 2002, 85.2 per cent, of claims under IACS (Arable Area Payments Scheme) have been paid.
§ Mr. ToddTo ask the Secretary of State for Environment, Food and Rural Affairs what representations she has received concerning delays in paying farmers for claims within the integrated administration and control system; and if she will make a statement. [29080]
§ Mr. MorleyMy right hon. Friend, the Secretary of State, has received a number of representations mainly in the form of parliamentary questions and correspondence.
The industrial action which commenced on 20 August 2001 and which has severely impacted on claims processing was suspended for two weeks, beginning 11 January 2002. This is good news and has enabled the Rural Payments Agency (RPA) to put more resources into 245W processing through overtime working. Additionally those offices with the largest backlogs are being reinforced by transferring in staff from other sites. The staff are keen to make up the lost ground and are working enthusiastically. That said there is no chance of RPA being able to recover before 31 January 2002 the several thousand man days of claims processing that has been lost. Arable Area Payments (AAPS) has been most seriously affected because this is a complex scheme on which it is not easy to deploy inexperienced staff.
By the end of the payment window on 31 January 2002 RPA expect to have paid around 90 per cent. of claims and providing the industrial action remains suspended, AAPS payments should be completed by around mid-February 2002.
Livestock scheme payments are also being affected but, although software has had to be upgraded to reflect regulatory changes on the bovine schemes and to carry out cross-checks on claims where holdings were affected by foot and mouth disease, RPA expect to make all the payments within the regulatory timescales.
My right hon. Friend, the Secretary of State, also had a meeting with the British Banking Association (BBA), including representatives of all the main clearing banks, on 22 November 2001. It is hoped that as a result of that meeting the BBA will be sympathetic to the effect that the industrial dispute is having on the cash flow of farmers who have received their payments later than normal.