THE First Minister has been accused of being complacent as Scotland’s farmers face “another year of chaos” over subsidies.
Conservative Peter Chapman called on Nicola Sturgeon to take responsibility for the “catastrophe” in the IT system set up to distribute the Scottish Government’s Common Agricultural Payment (Cap) in recent years.
Scotland’s £178 million system, which closed at the end of March, has been beset by delays and increasing costs, with some payments from 2015 still outstanding last month.
Speaking at First Minister’s Questions yesterday Chapman said: “I’m shocked by how complacent the First Minster is here because let me be clear, farming communities are not so relaxed about this issue as she is.
“This IT system has already created the worst farming cash crisis in a generation. Now we learn there is still no back-up system. Should this IT system fail there is the possibility of £60m in EU fines for non-compliance and yet more money is needed to get the system working.
“Farmers across Scotland are still waiting for 2015 and 2016 payments and worst of all we face another year of this chaos until this system is fully compliant.
“In light of the catalogue of errors, does the First Minister take full responsibility for this catastrophe and how can Scotland’s farmers ever trust her again?”
His comments followed a new report from Audit Scotland which warned ministers of the “significant risks and costs” the IT system still poses, including the possibility of a European Commission fine of up to £60m if it fails to meet regulations such as paying within set timescales.
Previously, Audit Scotland had suggested the penalties could be as high as £125m.
The report found the application process has improved but previous difficulties “continue to have an impact on payments”, while loan schemes for farmers brought in by the Government had introduced more risk to the Government’s budget.
The report said: “The system is not yet working as efficiently as planned and will require significant additional investment.. the programme has not delivered value for money.”
Auditors concluded the system may not be functioning as anticipated until the 2018 payment cycle “at the earliest”.
Sturgeon said she takes responsibility, adding there is “not a shred of complacency” in her Government on the Cap system.
The First Minister said the £60m figure for fines is “entirely speculative” and the financial ceiling for delivering a compliant Cap system is being held to.
She said 99 per cent of payments for 2015 have been made.
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