Farm payment fiasco

THE SYSTEM set up to provide financial support to rural workers still has serious cost and operational issues, and is unlikely to deliver value for money, according to a report by Audit Scotland.

The problematic £178 million Common Agricultural Policy’s future farm support computer system could also cost the Scottish Government up to £60 million in fines, the independent body claims.

At the moment, the IT system struggles to make payments to farmers on time and, according to Audit Scotland, it will be at least 2018 before this will be remedied, with no back-up in place in the event of a complete system breakdown.

Stabilise

The report by the independent body, set up to review the progress in resolving the serious issues, acknowledged that significant changes in leadership over the past year have brought about a renewed effort to stabilise the programme, but, to date, it has not delivered value for money or the expected benefits for applicants.

The findings come as no surprise to NFUS president Andrew McCornick, who said: ‘For three years, we have been highlighting the problems of the IT system.

‘Several loan schemes have been won by NFUS and put in place to bypass the IT system and deliver much-needed funding to farms and crofts. But we know that the loans don’t work for everyone.

‘I am on record as saying that if this IT system had been a tractor that I had bought, then it would have been returned to the dealer years ago with demands for a full refund.’

Mr McCornick added that the lack of this money was ‘leaving a hole in the Scottish rural economy’.

Richard Lochhead stepped down as rural affairs secretary after months of condemnation. His successor, Fergus Ewing, said: ‘Clearly there is more for us to do and I recognise that we are not there yet, but I welcome that this updated report from Audit Scotland recognises a range of improvements that have been made and reinforces the actions we have taken since last May.

‘We will consider the findings carefully in the context of the significant improvement activity already under way.

‘However, it is disappointing that overall the key points do not fully reflect all the progress made.’