Farming agency fined millions by EU over late-payment blunders

THE GOVERNMENT has been handed another multi-million pound fine by the European Commission following problems within Defra.

Officials from the EC said that a total of 15.9m is being claimed back from the UK, including 12.5m for late payments of subsidy cheques to farmers.

A further 3.1m has been added to the bill owing to the Government's failure to properly administer the rural development programme.

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A spokeswoman for Defra told the Yorkshire Post that the fine for late payments had already been accounted for and would involve no extra cost to the taxpayer.

Last year the department faced a 75m fine for late payments to farmers under the Single Farm Payments scheme following well-documented problems with the Rural Payments Agency, the body responsible for administering the payments.

In total more than 305m of EU farm money is being claimed back across member states.

Greece is the country facing the highest bill with more than 100m due to be clawed back from its public finances. Virtually all members of the EU are facing a fine.

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Dacian Ciolo, commissioner for agriculture and rural development, said: "This exercise remains a very important instrument in making sure that member states have sufficient controls in place to ensure that taxpayers' money is properly spent."

A Defra spokeswoman said: "This money mainly relates to payments under the 2005 Single Payment Scheme and has already been accounted for and deducted from funds we claim from the Commission.

"The main financial impact was reflected in Defra's 2008/09 accounts and paid from sums agreed with HM Treasury for this purpose.

"Payment deadlines have been met and therefore no late fines are expected for the 2006 SPS or subsequent years."

The news comes as this week the RPA prepares to publish information about all CAP payments it has made. The information is due to be released on the Defra website by the end of April.

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