The Rural Payments Agency is still under fire despite unlocking funds for a number of producer organisations (POs) this week.
Several approved POs have received funding from the body but 17 remain suspended for non-compliance.
Payments started last week and will conclude early next, though the RPA is still “chasing some claimants for further information”.
A spokesperson for the RPA said: “2010 payments to all compliant POs have been made. To avoid delay, we have been making payments to suspended POs in instalments based on the verified amount of aid claimed rather than waiting for the entire claim to be processed. Payments on these started last week and we expect all claims that can be paid to be settled later this week or early next. We are chasing some claimants for further information and are working through information recently submitted but our aim is to pay these as soon as possible once satisfactory checks have been made.”
A number of POs have visited RPA HQ in Newcastle to display evidence of their status. The 17 suspended POs have until August next year to comply with the rules.
The main issues the RPA has with non-compliant POs is understood to be the relationship between POs and marketing agents and changes made to POs deemed to be “artificial”. RPA rules state “no payment shall be made in favour of beneficiaries for whom it is established that they artificially created the conditions required for obtaining such payments”.
A spokesperson for one PO said: “It’s a Catch 22 situation - they could see any change as artificial. It has created an undercurrent of worry as to how to deal with it. POs need to be able to tweak their systems, policies and procedures - it’s a major stress point.”
One director of a suspended PO said the issue has “gutted” confidence. “It is a dreadful way to treat the sector,” he said. There has been a loss of confidence and a loss of opportunity. The RPA does not understand the amount of damage they are doing.”
Richard Hirst, chairman of Anglian Pea Growers, which is a recognised PO, defended the organisation: “There are not enough staff at the RPA and you have to have some concern about the staff - they are caught between industry and Europe. But we were told two years ago there would be no more problems with the POs being de-recognised and it has happened again.”
John Burden, chairman of Northern Mushrooms, which has been granted £440,000 of RPA funds, said the aid scheme was a good one but remained onerous. “We have had staff working into the night to get all the information the RPA has demanded. It has been onerous and arduous.”
Several POs are in talks with the NFU to set up a group to address POs next year.
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