Defra officials to be questioned on farm payments

Defra will be asked to explain its failings to the Public Accounts Committee

MPs will question officials from the Department of the Environment, Food and Rural Affairs (Defra) this afternoon over the future of the Rural Payments Agency (RPA) and its failure to effectively deliver EU subsidies to farmers.

The Public Accounts Committee will ask for an explanation for the failings of the agency outlined in a highly critical report by the National Audit Office (NAO) earlier this month.

This is the third time the agency has come under fire from the NAO surrounding weaknesses in distributing accurate and prompt payments to farmers.

In 2006, just a year after its Single Payments Scheme was launched, the agency was criticised for delayed transactions, while in 2007 payment inaccuracy was highlighted.

The RPA responded to these problems with an attempt to alter the way the IT system distributes funds, with a programme that cost £130m but has not significantly improved performance, according to the NAO.

The NAO wants the agency to seriously consider ditching its IT system altogether.

Earlier this month, Amyas Morse, head of the NAO, voiced his concerns surrounding the "serious lack of attention to the protection of taxpayers' interests" through the ongoing administration of the scheme.

"It's becoming increasingly evident that the longer the RPA processes its payments in this way, the more expensive and complex it will be to unpick the errors it is making," he said.

"Not only has the RPA spent £350m on its IT system, it has also grossly over-budgeted its main contractor (at £84m) meaning overpayments are estimated to be between £55m and £90m."

The committee's meeting this afternoon is expected to highlight the need for change and officials will be pressed on the future of the agency.

Farming minister Jim Fitzpatrick, who will attend the meeting, said he supports the review.

“It benefits us all to ensure that the RPA is operating efficiently and I look forward to the final outcome of the review," he said.