Rural Payments and Services

Action required by Europe to cut red tape for Scottish farmers has been highlighted by Rural Affairs Secretary Richard Lochhead.

Mr Lochhead has raised the issue with Europe’s Agriculture Commissioner Phil Hogan in a discussion on Common Agricultural Policy (CAP) simplification on the eve of the Royal Highland Show. In a speech to the flagship Quality Meat Scotland breakfast event, Mr Lochhead also revealed that ‘real progress’ is being made repatriating red meat levies paid by Scottish producers.

He also announced that he had asked Sheep Farmer of the Year 2014 John Scott to set up an industry-led task force to look at what the sheep sector needs to do to thrive.

The Rural Affairs Secretary said:

"This was a very welcome opportunity to discuss in detail with Commissioner Hogan Scotland’s priorities for CAP simplification and cutting red tape, in line with Brian Pack’s recommendations.

"The new CAP we are having to implement is far more complex than anyone could have imagined, and the challenges this has created for administrations and farmers alike – right across Europe – are well known.

"Scotland, like 15 other Member States, had to extend the Single Application Form (SAF) deadline in order to deal with the complexities of the new system. Now the application window has closed, we have a clearer idea of the knock-on implications of that extension.

"I know under the old CAP the industry became used to payments coming out right at the start of December. This year we face huge challenges, not just because of the new IT system but also because of additional tasks such as greening inspections, calculating and issuing entitlements.

"Our team is working hard to be able to start making payments before the end of the year. Of course at this stage in the year I can't give a guarantee of that. But I’ve told the team to do their best to achieve the December payments, and I will be able to give a clearer indication in the coming weeks.

"The Scottish Government will look at all the flexibilities available to us - like paying in instalments or splitting up Basic and Greening payments - so as to get payments out to farmers as early as we possibly can.

"In this first year there are bound to be issues where we need clarification or guidance form the Commission, and I urged Commissioner Hogan to make sure his staff are ready to help out as needed."

On red meat levies, Mr Lochhead said:

"I have repeatedly brought the issue of Red Meat Levy repatriation to the fore with the UK Government over the past decade.

"With QMS losing around £1.5 million per year this has to be a priority. It is almost 10 years since the Radcliffe Review - change is long overdue.

"I am pleased to say that we are seeing light at the end of the tunnel, building on Smith. At its last meeting here in Ingliston in May, the UK industry forum at last made real progress. It agreed there was enough consensus to recommend to Ministers that they start the process of changing the law to allow repatriation.

"This will allow money previously taken from Scottish farmers, to be used to market our livestock, instead of being used to promote meat from elsewhere on these islands.

"However industry consensus is not the same thing as ministerial action. I will be pressing my DEFRA counterparts to press on with this at a much faster pace than has been the case in the past."

On the sheep sector task force, Mr Lochhead commented:

"Scotland’s sheep farmers have a great deal to be proud of. They do a fantastic job in the face of serious challenges. But if the sector is to thrive it also needs to make sure it is at the top of its game.

"That means continually looking to improve, whether in production efficiency, marketing or processing.

"I am pleased to be able to announce today that I am asking John Scott, Sheep Farmer of the Year 2014, to set up an industry-led task force to take a short, sharp look at what more the sheep industry can do to meet the rising global demand for quality red meat.

"I have asked the group to report by Easter 2016 – a traditional time for enjoying natural, delicious and versatile Scotch Lamb - with recommendations as to how to help deliver a successful future for the Scottish sheep sector."