14 December 2007
The Rural Payments Agency, responsible for the Single Payment Scheme for farmers, is still at risk from financial penalties and loss of farmers' confidence, according to a report by the National Audit Office.
The December 12 report concluded that despite making 'good progress' in administering the grants scheme after a series of problems in 2005, it still has more to do.
Auditor general Sir John Bourn said: 'Until the agency is in the position consistently to meet the June deadline each year and can process payments within an acceptable tolerance of error, the risk is that farmers' confidence in the scheme will wane and the European Commission will levy financial penalties.'
Although the agency met its 2007 deadline for paying claims, it has not yet recovered sums from farmers who were paid too much or made up the difference to those who were paid too little.
In September the Commons Public Accounts Committee slammed the agency's handling of the European Union scheme, which replaced Common Agricultural Policy subsidies. PAC chair Edward Leigh said the agency was 'operating on a knife-edge'.
PFdec2007
