Union adds its voice to call for convergence funding review

Letter sent to Michael Gove to increase pressure on resolving the dividend issue as part of Scotland’s post-Brexit support

The stalemate between Westminster and Holyrood over £190 million of EU money is delaying the formulation of Scotland’s future farm policy, according to the farmers’ union.

NFU Scotland (NFUS) yesterday threw its weight behind Rural Economy Secretary Fergus Ewing ahead of his scheduled meeting with UK Environment Secretary Michael Gove to discuss the long-promised independent review of convergence funding, the EU monies which were intended to compensate Scotland’ s farmers for lower-than-average support rates. Defra chose instead to share the funds across the UK, a decision that has been disputed for four years.

Last November Mr Ewing announced he had been given an assurance that a review would go ahead, but despite intense questioning by MSPs at Holyrood last week and Scottish politicians, the union and the press at the Royal Highland Show last month, Mr Gove has refused to make any commitment.

NFUS president Andrew McCornick has now written to Mr Gove and called for the review to be included in decisions on Scotland’s post-Brexit agricultural support package.

He said: “The UK’s CAP budget convergence dividend issue must be fairly resolved to provide the financial base upon which to build future Scottish agricultural policy. This review must also be about agreeing the framework for agricultural spending post-Brexit and beyond the requirements of the CAP.

“There is a clear opportunity for the UK Government to show an unreserved commitment to Scottish agriculture, and our Less Favoured Areas in particular, by honouring the pledges made to review by successive Secretaries of State.”

Mr McCornick added that he was convinced that this issue could be resolved by undertaking the promised review based on “non-historic allocations and objective analysis”.

The funds were paid by Europe in 2014 as the result of Common Agricultural Policy (CAP) reforms. A multi-annual financial framework set a threshold of 90% of the EU average payment rate per hectare, which equated to about €243 per hectare. The UK’s average rate per hectare fell below the 90% threshold because of Scotland’s very low average payment rate which is only about 45% of the EU average. Consequently, the UK will receive an extra €223m, about £190m, over a six-year period.

Picture: Wullie Marr Photography. Mr Gove refused to be drawn on a review of convergence funding during a visit to the Royal Highland Show.