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Single Payment Scheme payments to farmers: Defra makes claim to cover possible financial corrections

by 5m Editor
23 February 2007, at 1:53pm

UK - The media has reported Defra’s claim for £305m to provide cover for potential financial corrections, following setbacks with the Single Payment Scheme and other CAP schemes.

The claim, on the Treasury reserve for 2006-07, is to provide estimate cover for provisions in respect of potential financial corrections to EC reimbursements for payments to farmers.

In making this claim Defra will be accounting for the possibility that the EC may make financial corrections to reimbursements for payments made to farmers during 2005/06 and 06/07.

It is a one-off request, following the well-publicised problems in the initial set-up and administration of the Single Payment Scheme in England.

The European Commission has not yet come to a decision on potential corrections, or their level, and the deliberations between the UK and the Commission are at an early stage.

If the additional funding is approved by Parliament, there will not be any adverse impact on other Defra programmes in 2006-07 or 2007-08. The level of payments made to farmers are not affected by any financial corrections made by the EC.

This morning David Miliband told Parliament in a written statement that full payments under the 2006 Single Payment Scheme (SPS) began in January and partial payments started last week.

5m Editor