Friday 29 March 2024
 7.3°C   SSE Gentle Breeze
Ocean Kinetics - The Engineering Experts

News / NFU welcomes belated government action

On Tuesday night First Minister Nicola Sturgeon intervened in a crisis that has left rural affair minister Richard Lochhead's position in doubt. Photo: Shetnews

THE LOCAL NFU branch has welcomed the news that any crofter or farmer yet to receive the first instalment of their CAP subsidy payment by the end of this month will receive money from the Scottish Government in April.

First Minister Nicola Sturgeon intervened in an effort to address a cash flow crisis facing many in the agriculture industry due to late payments caused by a malfunctioning £178 million new government IT system.

The situation has left rural affairs minister Richard Lochhead in a perilous position, with many expecting that he will be moved aside after May’s Holyrood elections.

On Tuesday night, Sturgeon said: “I very much recognise the cash flow issues facing Scottish agriculture, which underpins our £14 billion food and drink industry.

“That is why the Scottish Government has earmarked up to £200 million of national funds so that any farmer or crofter who has not received an instalment by the end of March receive a nationally-funded payment from the Scottish Government in April.” 

NFU Shetland chairman Jim Nicolson welcomed Sturgeon’s intervention at such an important time of year for the industry.

Nationally, barely a quarter of basic CAP support money had been paid out – just £103 million out of a total budget approaching £400 million. Payments are usually made in November and December.

At a local level, Nicolson said around a third of recipients were yet to receive a payment.

Coupled with poor commodity prices, that has had an impact on farmers and businesses, and the NFU hopes it now has the “clear leadership” it had been seeking from government for months.

“We very much welcome [the announcement],” he said. “It’s really something that the NFU has been asking for and we certainly hope that everybody gets the equivalent of 80 per cent of their payments before the end of April.

Become a supporter of Shetland News

 

“It’s very important to folk, it’s an expensive time of year for crofters and farmers with bills for feed and eventually fertiliser coming on.”

Nicolson said some of the work on processing payments had been done locally, with around two thirds of payments put through, but “that has to go through the computer system before they actually get the money”.

“There’ll still be almost certainly a third of potential recipients that haven’t got anything as yet,” he said.

Nicolson said the £180 million cost of the IT system seemed “absolutely ludicrous”, and he fears there could be further problems into 2016/17.

“Computers are supposed to save money and make things more efficient,” he said, “yet it does appear that neither of that is the case.

“What’s also worrying is that the NHS had a computer system that didn’t work, costing them £40 million that’s not now being used, and you wonder what’s going to be the outcome of this one.”

He added that it would soon be the time to fill in forms and make claims for 2016/17, and he fears that “if the computer system is still struggling to process this year’s claims, there will be another delay and knock-on effects for another year”.

But, while the NFU nationally also welcomed the availability of government money, the union’s planned rally at Holyrood at 11am on Thursday will go ahead.

Audit Scotland is already looking into what went wrong in the administration of the EU common agricultural policy payments.

Scottish Conservative MSP Alex Fergusson will today (Wednesday) table a motion calling for an independent inquiry into how the SNP administration has “mishandled” the payments – a call backed by the Tories’ Shetland candidate Cameron Smith.

“By the end of last month some 50 per cent of farmers had received some of the payment due,” Smith said, “but that is far from Richard Lochhead’s assurances that ‘most’ farmers would have received their payments by the end of January.”

He added: “The promise made for the end of January was the third indicative deadline given by the cabinet secretary. I find it hard now to trust any assurances given by the government on this issue, and an independent inquiry is needed to get to the bottom of the problem.”

Become a supporter of Shetland News

Shetland News is asking its many readers to consider start paying for their dose of the latest local news delivered straight to their PC, tablet or mobile phone.

Journalism comes at a price and because that price is not being paid in today’s rapidly changing media world, most publishers - national and local - struggle financially despite very healthy audience figures.

Most online publishers have started charging for access to their websites, others have chosen a different route. Shetland News currently has  over 600 supporters  who are all making small voluntary financial contributions. All funds go towards covering our cost and improving the service further.

Your contribution will ensure Shetland News can: -

  • Bring you the headlines as they happen;
  • Stay editorially independent;
  • Give a voice to the community;
  • Grow site traffic further;
  • Research and publish more in-depth news, including more Shetland Lives features.

If you appreciate what we do and feel strongly about impartial local journalism, then please become a supporter of Shetland News by either making a single payment or monthly subscription.

Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.

 
Categories

Newsletters

Subscribe to a selection of different newsletters from Shetland News, varying from breaking news delivered on the minute, to a weekly round-up of the opinion posts. All delivered straight to your inbox.

Daily Briefing Newsletter Weekly Highlights Newsletter Opinion Newsletter Life in Shetland Newsletter

JavaScript Required

We're sorry, but Shetland News isn't fully functional without JavaScript enabled.
Head over to the help page for instructions on how to enable JavaScript on your browser.

Your Privacy

We use cookies on our site to improve your experience.
By using our service, you agree to our Privacy Policy and Cookie Policy.

Browser is out-of-date

Shetland News isn't fully functional with this version of .
Head over to the help page for instructions on updating your browser for more security, improved speed and the best overall experience on this site.

Interested in Notifications?

Get notifications from Shetland News for important and breaking news.
You can unsubscribe at any time.

Become a supporter of Shetland News

We're committed to ensuring everyone has equitable access to impartial, open and quality local journalism that benefits all residents.

By supporting Shetland News, you play a vital role in ensuring we remain a pivotal resource in supporting the community.

Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.