Back-pay for IACSslips?
Back-pay for IACSslips?
By Philip Clarke
Europe editor
ARABLE farmers hit by backdated penalties for genuine mistakes they made when claiming area aid, could be reimbursed following an impending ruling by the European court.
A recent opinion from the courts advocate general said the UK government could only backdate such penalties for up to four years.
The opinion follows a case taken by two farming companies – W * Strawson (Farms) Ltd and J A Gagg & Sons – who had accidentally overstated their area claims. As well as being penalised for the year when checks were made (1997), they were charged on similar errors dating back to the start of the area aid system (1993).
While they accepted MAFFs right to levy fines on the 1997 errors, they questioned the retrospective penalties, worth a combined £28,000.
The crux of the opinion revolved around whether the defendants had based their claims on "information recognised by the competent authority", namely ordinance survey maps.
While this was the case, the advocate general also noted that the fields in question had been changed, (a track had been laid across one and some trees planted on another), and the applicants had not followed the correct procedures in notifying these changes.
As such, the OS maps were no longer valid and the UK government was entitled to backdate the penalties, he concluded. Significantly, however, the advocate general also imposed a four-year time limitation.
While this will not help Strawson or Gagg, as four years back from their 1997 infringement takes them to 1993 anyway, it will help farmers who have been penalised for similar errors in later years.
The NFU, which handled the case on behalf of the two members under the unions legal assistance scheme, is aware of at least another 40 farmers in a similar position.
"This is real progress," said NFU chief legal adviser Colin Hall. "We have strong reasons to believe the judgement will be in our favour when the case goes back to the High Court."
The final European court judgement is expected in two to three months and is unlikely to differ from the opinion. *