SPS failures cost taxpayer £161 million

DEFRA’S failure to implement the Single Farm Payment properly in 2005 has cost the UK taxpayer £161 million, the European Commission has confirmed.

The Commission adopted a proposal on Friday (July 16) which confirmed the UK must return €189 million (£161 million) of ‘unduly spent’ single payment money back into EU coffers.

In a statement the Commission blamed Defra for ‘incorrect calculation of payments’, ‘absence of control with regard to new farmers’ and ‘deficiencies in the application of regulatory sanctions’ when dealing with the Single Farm Payment.  

Defra Minister Jim Paice, who has been a long-time critic of the way the then Defra Secretary Margaret Beckett introduced the Single Farm Payment in 2005, said the Commission announcement was a chance to draw a line under the ‘long-running and expensive saga’.

He was also quick to point out that around £32 million (€38 million) of the total had already been paid to the EU and the rest was accounted for in the Defra budget.

“Today’s announcement will have no impact on the services we deliver, as the sums have already been accounted – but we recognise that more needs to be done to improve the administration of the scheme.

“I’ll be making an announcement about this, and the RPA review shortly,” said Mr Paice.

Commenting on the decision to retain the money, Dacian Cioloş, Commissioner for Agriculture and Rural Development, said: “We are working hard to achieve the best possible control of farm spending in order to verify that taxpayers money is not being misspent.”

Readers' comments (1)

  • This is a heck of a lot of cash that ought to have crossed through the 'farm gate'.There is no wonder that we farmers have no confidence in defras ability to deliver service!
    Back in the rural economy this money would have supported the industry an communities which is where it ought to have gone in the first place.
    Jim Paice ought to make sure the systems in place CAN deliver all the support and not with out an of control bunch of suits who spend too much time looking to themselves rather than as the population they were employed to serve.

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