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RPA may need to adjust 19,000 Single Payment Scheme claims

by 5m Editor
7 September 2006, at 10:01am

UK - RPA has introduced a new software upgrade to adjust Single Payment Scheme (SPS) 2005 entitlements where changes to the number, value or type/region may be necessary. Around 19,000 SPS claims together with 7,700 claims with horticultural authorisations are being reviewed to verify whether adjustments are required.

Since the definitive establishment of entitlements in February, routine checks on paid claims and representations from some customers have resulted in the need for adjustments.

As a result of these checks, claims may be subject to revision upwards or downwards, and RPA will be writing in due course to those customers whose claims are affected, advising of the revised position on their claim.

RPA Chief Executive Tony Cooper said: “Over recent months our focus has been on making payments to as many people, paying as much money as possible into the industry. This included a successful partial payments plan. However, it was clear from February, when the problem was first identified, that we would need to make some final adjustments as we neared the end of the process and a more complete picture of entitlements and claim values emerged.

“Now that over 98% of the estimated £1.515 billion fund has been paid out to farmers we are in a much better position to make the adjustments and have developed the tools to do this.”

* RPA is also writing to advise some 700 customers who were overpaid in June (previously covered in 3 August RPA announcement) a sum of just under double the value of their entitlement, totalling around £4.4 million that EU Regulations oblige them to repay the funds.

RPA is currently calculating the precise amount of overpayment, taking into account modulation, partial payments and any other activities on the account. Once this calculation is complete, RPA will be writing again with an invoice.

Although the Regulations provide that interest must be charged on overpayments, RPA will not do so if the repayment is made within 28 days of the date of the invoice. After this time, interest will be applied at the London Interbank Offered Rate (LIBOR) + 1%.

Source: FWi

5m Editor