NFU Scotland has expressed serious concern at the apparent willingness of the UK Government to re-open the issue of Common Agricultural Policy (CAP) reform only months since the last changes took effect. NFUS has expressed its concerns following the Prime Minister's statement that no discussion on the UK's EU rebate could begin without a commitment to further reforms of the CAP.

NFUS has stressed that the CAP has just undergone the biggest reform in 40 years and the outcome of the last negotiations is taking effect for the first time in 2005. Despite the reform being heralded as a 'massive achievement' by the UK Government, it now appears willing to pull out of the deal it signed up to in order to protect its EU budget rebate.

NFUS President John Kinnaird has written to the Prime Minister reiterating the importance of the latest reforms for the environment, rural communities and consumers. The main change is the replacement of direct support for food production with a regime that no longer pays support according to numbers of animals or amounts of crops. Instead, farmers have the freedom to produce in line with consumer demands and receive support in return for delivering environmental, food quality and animal welfare benefits. Mr Kinnaird has stressed that changing a system which is only six months old could jeopardise the benefits flowing from the last reform.

Speaking following the NFUS Board of Directors meeting today, NFUS President John Kinnaird said:

"The ink is barely dry on the last agreement, which was warmly welcomed by UK Government. I share the views of Mr Blair's Cabinet which described this reform as a massive achievement. To undermine these now by re-opening the whole issue is potentially damaging and destabilising for Scotland's agricultural industry.

"Environmental protection, food quality, animal welfare and rural sustainability have rightly been put at the heart of the new farming support system. Yet, these welcome benefits could be put under serious threat if our farming industry is used as a pawn in Mr Blair's battle with his French and German counterparts.

"Farming subsidies represent a very small proportion of UK Government expenditure, but that support generates billions of pounds in additional economic activity across rural Britain. Our food industry, countryside and thousands of other rural businesses and jobs could all suffer if Mr Blair decides that farming stability can be sacrificed in the name of the UK rebate."