Ministers are accused of keeping back EU funding

MINISTERS have been accused of sitting on hundreds of millions of pounds of EU money earmarked for rural development.

Replying to a written question from the Welsh Conservatives, Rural Affairs Secretary Lesley Griffiths said that up to the end of May only £92.1m had been spent in payments under the Rural Communities – Rural Development Programme 2014-20. The EU-backed programme, launched in June 2014, has a 1.13bn fund – £990m at today’s exchange rate.

The Welsh Conservatives pointed out this amounts to just 10% of the fund being spent in the first three years of the six-year scheme.

All approved projects will be fully funded even if they continue beyond the UK’s departure from the EU. However, the Welsh Conservatives said that if all the money is not spent by 2020, EU rules dictate that the remaining funds must be returned to the EU Commission.

Paul Davies AM, Welsh Conservative Shadow Rural Affairs Secretary, fears that money could be lost with the UK’s departure from the EU fast approaching.

He said: “Labour ministers are dragging their heels on getting this vital money to the rural communities that need it, and there is a very real danger that much of it is going to be lost. Farms are literally disappearing, wages are reaching new lows and TB continues to ravage the countryside. Meanwhile the Welsh Government is sitting on a pot of money that could offer huge relief if administered now to those who need it.

“I have very real concerns that if this lack of momentum continues, the Welsh Government could by 2020 find itself in a situation where they are sending millions of pounds back to Brussels – money which should have been spent boosting the rural economy. We need assurances from the Cabinet Secretary that she is working to a deliverable timetable for administering these vital payments.”

A Welsh Government spokesperson said: “These claims are completely untrue. The spend to date on the Rural Development Programme is entirely normal and in line with expected forecasts. It is not unusual to have a time delay between commitment of funds and claims, as applicants have to deliver activity and incur spend before they can claim. The entire programme has been committed and full spend is expected by the end of the programme period.

“It is also not correct that if funds are not spent by 2020 they will be returned to the EU Commission. The programme is a seven-year programme and funds must be committed within those seven years but can be paid up to the end of the third year following the end of the programme, ie 2023.

“Spend is increasing steadily, with 34 % of the programme forecast to be spent by the end of this financial year.”