NFU: Compensate for late cash

13 February 2001



NFU: Compensate for late cash

By FWi staff

PRODUCERS must receive their subsidy payments on time or be compensated by the Government, says the National Farmers Union.

The call follows delays in Arable Aid Payments which the Ministry of Agriculture attributed to staffing problems.

The NFU pointed out that Integrated Administration and Control System (IACS) legislation states that aid must have been received by 31 January, 2001.

NFU vice president Michael Paske says late payment has a huge impact on cashflows for farm businesses, many of which are struggling to make ends meet.

Both the Parliamentary Ombudsman and the High Court have ruled that MAFF should pay interest on late payments, says the NFU.

This is particularly valid in light of its own policy of recovering any aid overpayments with interest, says the union.