IT system in the dock before the public audit committee

PAYMENTS: There are grave doubts that the system will ever be fit for purpose

Widespread doubts that the Scottish Government’s flawed IT system will ever be competent to deliver farm support payments on time will be aired today when the Scottish Parliament’s Public Audit Committee takes evidence on the ongoing debacle.

Scotland’s whole rural economy was placed in jeopardy earlier this year when the £200 million IT system failed to deliver support payments on schedule.

And fears that serious glitches remain were confirmed earlier this month when Rural Economy secretary Fergus Ewing had to announce another loan scheme to tide farmers over during the winter.

Now NFU Scotland (NFUS) has urged MSPs to use the opportunity to challenge Scottish Government officials over the flawed delivery of CAP support last year, and to seek assurances on what is being done to deliver 2016 payments on time.

Union president Allan Bowie said it was “totally unacceptable” that technical glitches still hindered the ability of officials to give an unambiguous reason to claimants as to why they have not been paid, as well as a clear timetable for when their payment will be received.

“The blunt truth is that, as we near the end of September, there are almost 700 farmers and crofters who have yet to receive some or all of their 2015 basic payments,” he said.

“Combined with balance payments outstanding from other schemes, that means tens of millions of pounds are still missing from the Scottish economy and the flawed IT system is primarily to blame.

“In addition to this, many businesses that have received a payment in full or in part for 2015 schemes are yet to receive an official statement confirming how their payment has been calculated and what schemes each payment relates to.

“That is vital for tax and accounting purposes and Scottish Government must give a date as to when these notifications will be issued.”

NFUS called on public audit committee members to ask Scottish Government officials responsible for the CAP futures programme whether Government is able to clarify how fixes to the IT system are progressing in order to deliver outstanding 2015 payments to farmers and crofters and to establish a clear protocol for the delivery of balance payments for the 2016 payment run and beyond.

NFUS understands that of around 18,300 businesses eligible to receive CAP support, 17,000 will receive a letter from the Scottish Government this week inviting them to opt in to the 2016 national loan scheme.

The union has demanded that Government now communicates to the 1,300 businesses who are not being offered loans why they are not being included in the national scheme and what measures will be put in place to support them.

Mr Bowie said: “If this is the same group of businesses yet to be supported from 2015 arrangements then it is unacceptable they should be punished financially again when the inability of the IT system to properly process their claims is at the heart of the problem.”

Tens of millions of pounds are still missing from the Scottish economy. ALLAN BOWIE