Committee
Rural Economy and Connectivity Committee 25 January 2017
25 Jan 2017 · S5 · Rural Economy and Connectivity Committee
Item of business
Common Agricultural Policy Payments
Elinor Mitchell (Scottish Government)
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Effort is continuing in order to ensure that we get the letters out. I appreciate the importance of people understanding not just the amount of money that they will receive, but the reductions and exclusions, so that they can understand whether their payment is correct. However, anyone who can access the system online can log in and see their payment amount, so for accounting, bank and tax purposes, each person can find out the exact amount of money that they will receive. Anyone who is struggling to do that can contact their local office for help.
In the same item of business
The Convener
Con
Item 2 is evidence from the Cabinet Secretary for Rural Economy and Connectivity on common agricultural policy payments. The session is intended to allow the...
The Cabinet Secretary for Rural Economy and Connectivity (Fergus Ewing)
SNP
Good morning, everyone. Thank you for inviting me to the committee to update you on CAP and on the extremely important fishing negotiations and their outcome...
The Convener
Con
I am not becoming impatient—I am simply aware that committee members have a lot of questions. We are always grateful for your full answers, so I would like t...
Peter Chapman
Con
I declare an interest in a farming business back home.
Stewart Stevenson
SNP
I have a registered agricultural holding of 3 acres, from which I derive no income.
The Convener
Con
I declare an interest as a partner in a farming partnership. The first question comes from Peter Chapman.
Peter Chapman
Con
We are—sadly—still awaiting some 2015 payments. I thank the cabinet secretary for the updated information that he has given; it is good that something like 9...
Fergus Ewing
SNP
Thank you for that comment. I am pleased that you, as a farmer, recognise that the 99 per cent performance figure is good, but I accept that it is not good e...
Annabel Turpie (Scottish Government)
I will add a bit more detail to the figures. There are 2,408 payments still outstanding, in respect of which people will receive payment—that is, the loan is...
Peter Chapman
Con
When do you think that you will complete the process? When will all the payments be made?
Annabel Turpie
The delay in payments relates mainly to common grazing provision, which will be addressed in the next release of functionality. That will be in place by the ...
Peter Chapman
Con
The other significant part that is missing is land managers options payments, which you seem to be struggling with as well. What is the explanation for only ...
Annabel Turpie
We are now at 77 per cent and 471 LMO payments are outstanding, which are worth £500,000. We are doing our utmost to process those payments, but I believe th...
Peter Chapman
Con
So the IT system still cannot handle those cases. That is the problem—that is where we are at.
Annabel Turpie
The next release of functionality will aid that—that is correct.
The Convener
Con
I would like to ask two questions to follow that up. Regarding the 2015 payments, can you confirm that everyone has been sent a letter explaining exactly wha...
Annabel Turpie
Payment letters went out for the beef premium, greening and young farmer schemes. However, the reductions and exclusions letter, which explains exactly what ...
The Convener
Con
The problem is that some people who are completing tax returns have no idea exactly where the money is coming from. Also, they do not know what has been adde...
Annabel Turpie
I absolutely agree. We have mentioned letters before, and the issue was picked up in the PAPLS Committee and during the director general’s appearance at comm...
Elinor Mitchell (Scottish Government)
Effort is continuing in order to ensure that we get the letters out. I appreciate the importance of people understanding not just the amount of money that th...
Stewart Stevenson
SNP
The convener mentioned tax returns; there is, of course, a box on the tax return form in which people can say whether figures represent estimates rather than...
Elinor Mitchell
As I said, the information is available to people if they log on to the system—they can find out the exact amounts. However, the information that is missing ...
Stewart Stevenson
SNP
Yes—but I will press you on my question. I want to know that HMRC will not pursue people who clearly demonstrate that gaps in the information that they provi...
Elinor Mitchell
I go back to the point that the amount of money that individuals will receive is available for them to know. I have had no contact with HMRC.
The Convener
Con
Gail Ross has a short follow-up question, then we will go to Richard Lyle.
Gail Ross
SNP
I will ask later about disallowance and EU penalties. Does the Government’s having not sent out letters to people incur EU penalties?
Elinor Mitchell
No.
Richard Lyle
SNP
I do not think that this question has ever been asked, so bear with me. We have quite a number of schemes in agriculture—basic payments, greening, young farm...
The Convener
Con
That is obviously a question for the cabinet secretary, but I think that he is gathering his thoughts. I can delay bringing you in and bring Annabel Turpie i...
Fergus Ewing
SNP
No—I do not need a delay. I am just amused by the question. In a sense, it is a perfectly pertinent one—particularly for people who are not versed in all the...