Ministers get their sums wrong as loans descend into ‘farce’

SNP Government miscalculates offers to hundreds of farmers

The Scottish Government’s “car crash” £178 million IT system is at the centre of yet another farm subsidy blunder as farmers await the release of 2016 farm subsidy monies.

Letters have been issued across Scotland by Holyrood outlining payments under a new National Loan scheme – set up safeguard farmers from a repeat of the 2015 IT payment system debacle, during which the Scottish Government’s computer software proved wholly incapable of issuing eligible farmers with farm support cash payments.

The loan scheme is being offered to approximately 17,000 of the 18,300 Scottish farmers and crofters who have applied to 2016 CAP support schemes.

It has been designed at the behest of the industry, offering farmers 80% of their total support – which should reach farm bank accounts during the first week of November.

However, it has now emerged the information used by the Government to calculate its sums was, in many cases, wrong.

According to NFU Scotland, it has received countless telephone calls from worried farmers that not all of the region 3 land that they have included in their 2016 claim – typically hill ground – has been included in the calculations for their national loan.

Whilst the Government has held its hands up quickly to the mistake, it said unfortunately the error was only recognised after letters were sent for distribution.

It now intends to contact each of the hundreds of farmers and crofters concerned – and will issue new loan offers accordingly.

NFU Scotland chief executive Scott Walker said: “On the same day that MSPs on the Public Audit committee are taking evidence on the flawed CAP Futures IT programme, another error with the £180 million computer system will once again undermine farmers’ and crofters’ confidence in it ever being capable of delivering.

“The loan scheme is a recognition of the fact that the IT system would not deliver 2016 CAP monies in good time.

“The Scottish Government saw the car crash that this would have had on the rural economy and pre-empted it by introducing a loan scheme to help ensure that finances in the rural economy would keep moving.

“To hear that yet another IT flaw has caused problems for the loan scheme is deeply disappointing.”

Mr Walker said that although measures have been put in place to quickly rectify the issue, it remains paramount that individuals affected by this further blunder still get their loan in November.

“Once again farmers and crofters will be justifiably asking when this system will ever be fit for purpose,” he added.

Reacting to the news, Scottish Liberal Democrat agriculture spokesman Mike Rumbles and north-east Conservative MSP Peter Chapman were both quick to condemn the latest blunder a “complete shambles”.

Mr Rumbles said: “This morning Scottish Government officials told MSPs that farmers have nothing to worry about and IT problems with the new CAP system are being fixed.

“This afternoon we learn that the latest computer shambles has left hundreds of farmers in the dark over their 2016 loan. This loan scheme was only introduced because of ongoing IT problems. “This is an utter farce. “There cannot be a farmer or crofter in the country who still has confidence in the ability of the Scottish Government to manage their CAP payments effectively.”

Mr Chapman said: “You really couldn’t make this up.

“It is an absolutely shocking catalogue of blunders and farmers will be wondering when it is ever going to end.”

Commenting on the situation, a Scottish Government spokeswoman said: “Clearly we regret this miscalculation.”

However, she denied the matter had anything to do with the Government’s new IT system.

“We have acted very swiftly to address it and to ensure it doesn’t affect the timetable for getting the loan payments to farmers,” she added.

Once again farmers and crofters will be justifiably asking when this system will ever be fit for purpose. SCOTT WALKER