DEMINIMUS PAYMENT MUST BE INTRODUCED FOR SPS - WILLIAMS (Brecon and Radnorshire Liberal Democrats)

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Brecon and Radnorshire Liberal Democrats <info@brecon-radnor-libdems.org.uk>

DEMINIMUS PAYMENT MUST BE INTRODUCED FOR SPS - WILLIAMS

February 9, 2010 12:00 AM

Roger Williams, MP for Brecon and Radnorshire and Liberal Democrat Food and Rural Affairs spokesperson, has called for the Government to bring in a deminimus payment for the Single Payment Scheme (SPS) after figures revealed that a minimum payment of £0.01 was made in each of the last 4 years.

Mr Williams said:

"It costs £1743 to process a single SPS claim, which in itself has increased by £300 over four years.

"The fact that a payment of £0.01p was made in each of the last 4 years just goes to show that this system needs a total overhaul.

"This is money that could be put to better use and directed towards farmers who genuinely need financial assistance in the current economic climate.

"Given the problems facing dairy farmers, the decline in the number of organic farmers and the often desperately low income wages that many farmers receive, the fact that it has cost £1743 to pay out £0.01 is absolutely staggering and is yet another example of government waste.

"This system has always had problems but these latest figures go to show just how little control DEFRA has on reducing costs within the SPS and it is essential that changes are made to the system as a matter of urgency.

"The Liberal Democrats would introduce a deminimus payment of £300. This would potentially save up to £14m in terms of payments and processing costs and would ensure that money was directed towards genuine food producers.

"The money saved by introducing a minimum payment could then used to fund a hill farming apprenticeship scheme to ensure the future viability of the uplands and, as a result, the wider farming sector.

"With increasing concern over food security, Ministers must look at reducing costs within the SPS and ensure that those who produce food for consumers are the main beneficiaries."

NOTES:

The attached documents show the costs of processing SPS claims and a breakdown of recent claims over each of the last 4 years.

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