Margaret Beckett statement on the Single Payment Scheme
16/03/06

Written Parliamentary Statement by Margaret Beckett, Secretary of State for Environment, Food and Rural Affairs on the Single Payment Scheme - 16 March 2006.

The Secretary of State for Environment, Food and Rural Affairs (Margaret Beckett)

This House, and the farming industry in England, has I know, been concerned about problems with the Rural Payments Agency’s delivery of the Single Payment Scheme. The Government fully shares this concern and I would like to make a statement about action which I am taking today.

The Minister for Sustainable Farming and Food, Lord Bach, told the other House on 31st January that the RPA would establish entitlements in mid February and that all farmers would then receive an entitlement statement. This has now happened in all but around 1% of cases and payments did indeed start to be made before the end of February.

Ministers have throughout been advised that, following the validation of claims, the RPA expected to make the bulk of payments by the end of the month. Late on Tuesday afternoon the Chief Executive informed me that their latest reassessment of the position was that this would no longer be possible. This is an unacceptable situation.

I have concluded that urgent action is needed to strengthen the leadership of the agency. With my approval, the Permanent Secretary of my Department, Helen Ghosh, has today appointed Mark Addison as Acting Chief Executive in place of Johnston McNeill. Mark Addison has outstanding experience and abilities which I believe fit him for this task, and I have asked him to report to me by Tuesday on the immediate steps needed to get us back on track. A new Chief Executive will be recruited as soon as possible to take on the task of leading the agency forward at this crucial time.

Ministers had already concluded, on advice from the Permanent Secretary, that there were structural issues in the RPA which needed to be addressed over a longer period of time. I am therefore announcing today our decision to set up a fundamental review of the agency, to look at its current and possible future functions, and the effectiveness of its relationship with my Department and its other key stakeholders, and to make recommendations for the future. Details of the review are being published today on my Department’s website.

I know that this House and everyone in the farming community will be as disappointed as I am about the announcement I have had to make today, but a successful conclusion to the 2005 round of SPS and a smooth start to the 2006 scheme will remain one of the department’s highest priorities.

RPA staff have worked with absolute dedication throughout, often in the face of considerable difficulties. I am sure they will continue to do so.

SPS Shambles needs sorting out now
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Single Farm Payment Relief