Unbelievable' action by EU on LFA payments

Originally from: Susan Staunton
                        
Unbelievable' action by EU on LFA payments

LESS-FAVOURED area payments to more than 11,000 farmers in Scotland could be delayed for weeks because of a "technical hitch" in a European Commission committee.

The payments, worth about £61 million to hill and moorland farmers, should have started in mid-March.

But yesterday, the commission's STAR – effectively budget control – committee took the Scottish executive's proposals for LFA changes off its agenda. It will not convene again until mid-March.

Although both Ross Finnie, rural development minister, and NFU Scotland described the committee's decision as "unbelievable", both tried to be optimistic that the proposals will go through at the next meeting.

The executive also insisted that any payment delay would be kept to a minimum.

Subsidy payments to farmers and crofters in the 85 per cent of Scotland classified as less-favoured have been bedevilled for the last two years by the way they are interpreted in Brussels.

Last year, the payments changed from headage payments for livestock to area-farmed or crofted, creating some winners who got more but a majority of losers.

A safety net guaranteeing that the subsidy in 2001 would be not less than 90 per cent of that in 2000 under the old system was used last year, and payments in 2002 have an 80 per cent safety net. But some farmers could be down to 50 per cent of former payment by 2003.

The Scottish executive made proposals to reduce payment distortion at the end of last year. These will increase payments for beef cows and rough grazing, and increase the number of "winners" under the new system. Approval for them should have been given last month.

A stunned Finnie said: "We were led to believe that our proposals met all the relevant criteria. It is unbelievable that another branch of the European Commission should now raise an objection.

"I have taken this matter up with agricultural commissioner Franz Fischler's cabinet, and have demanded an explanation and also confirmation of his support for our proposal."

An NFUS spokeswoman said: "It is unbelievable. But until we know the full details, we hope it can be resolved quickly."

Fordyce Maxwell
Thursday, 21st February 2002
The Scotsman