UK to pay £23m in EU CAP charges

MORE than €500 million of EU agricultural policy funds unduly spent by member states is being clawed back though the European Commission, with the UK being forced to pay €26.95m.

As part of the so-called clearance of accounts procedure, €530m (£468.6m) will return to the EU budget because of non-compliance with EU rules or inadequate control procedures on agricultural expenditure.

The figures, which have been released today (April 15), reveal the UK has been ‘charged’ €26.95m, (£23.84m) which the commission says will be deducted from future payments.

It said the UK was shown to have ‘weaknesses in the recognition of Producer Organisations and related weaknesses and deficiencies in verifying the value of marketed production in the area of fruit and vegetables’.

A spokeswoman for Defra said: “The Producer Organisation working party, consisting of Defra, the RPA and representatives of Producer Organisations, have looked at guidance for the scheme and has now clarified rules for the sector to ensure they meet the EU requirements for the fruit and vegetables regime.”

She added Defra, the RPA and representatives of Producer Organisations had formed a working group to clarify guidance for the sector. This will ensure recognised Producer Organisations meet the complex EU regulatory requirements covering the Fruit and Vegetables Aid scheme.

“A number of EU member states have experienced difficulties with the interpretation of these regulations,” she added.

Funds will also be recovered from Bulgaria, Denmark, Greece, Spain, France, Italy, the Netherlands, Portugal and Romania, while there is a small reimbursement to be made to Germany.

CAP payments:

  • Producer Organisations support members of a particular fruit or vegetable sector to work collectively to enhance their businesses, increase competitiveness, concentrate supply and improve the environmental sustainability of that sector.
  • The UK currently has 46 POs, drawing on EU support of around £27m a year. This aid is match funded by the POs and their members.
  • Effective Producer Organisations help to develop and expand the market and increase the amount of domestically produced fruit sold and consumed in the UK. For example English strawberry production has increased significantly in recent years and is a real success story for the sector.
  • The Commission carries out more than 100 audits every year, verifying member state controls and responses to shortcomings are sufficient.

Readers' comments (1)

  • Typical DEFRA, spending its time being a police service investigating producers that misinterpret the rules, rather than assisting them getting support to grow businesses that pay tax to support the UK economy. Spelman should be fired for yet another incident!

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