§ Mrs. Ann WintertonTo ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the future payment of European Union subsidies to farmers in euros. [42250]
§ Mr. MorleyThe Government are committed to providing farmers with the option of receiving grant and subsidy payments in euro at the earliest practical opportunity, where they request this. We have considered the timing and practical requirements involved very carefully.
IT systems must be in place to deliver euro payments to farmers. A manual system, even to cope with a modest demand, would be extremely expensive and inefficient. In order to be able to make payments to farmers in euro as early as possible, the Rural Payments Agency (RPA) has included euro capability in the design for all of its system development. The devolved Administrations have programmed in similar work, as all CAP paying agencies must be able to deliver at the same time.
The euro payment service for farmers is expected to be in place by the end of 2004 when RPA and the devolved Administrations have developed the necessary systems.
Once a system for direct payments in euro is available, it is likely that farmers would be asked to commit three months in advance and to sign up for a minimum of a year. That would be in line with the system the RPA is currently running for paying traders in euro where they request it.