Rural Payments Agency report

Farmers lost millions due to payment failures

Thursday, 29, Mar 2007 12:00

A select committee report has called for former environment secretary Margaret Beckett and senior civil servants to be held to account over the failures of the Rural Payments Agency (RPA).

The environment, food and rural affairs committee examined attempts to introduce a single payment scheme (SPS) to pay out grants and subsidies to farmers.

In March 2006, the Department for Environment, Food and Rural Affairs (Defra) announced it would be unable to make the payments on time, resulting in costs of around £20 million to farmers in bank penalties as well as "widespread disruption" to the rural economy.

Defra also faces fines of up to £400million from the European Union for failing to comply with the rules regarding SPS.

Ms Beckett was the secretary of state at Defra during the crisis and is now foreign secretary. The committee recommends she, and senior civil servants, "consider their positions".

The government's handling of the RPA has been condemned by opposition politicians and they have called for ministers to be held to account.

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