Scots resolve sheep cash wrangle

23 May 2001



Scots resolve sheep cash wrangle

By Shelley Wright, Scotland correspondent

THE Scottish Executive faces a 1 million bill after settling a two-year wrangle with farmers over its misinterpretation of subsidy scheme rules.

Money withheld from 121 farmers who had subsidy payments frozen when the executive misinterpreted environmental scheme rules will now be paid.

Stocking densities should normally be reduced under rules governing the Environmentally Sensitive Area Scheme and Countryside Premium Scheme.

The farmers were originally told that quota from sheep removed could not be sold or leased, but could be transferred to other stock on the farm.

Then, last year, the farmers received letters telling them that executive lawyers had misinterpreted the rules and that quota could not be used at all.

As a result, the executive froze Sheep Annual Premium payments and agri-environment payments to the farmers.

After months of discussion, the original ruling allowing farmers to use the quota for other sheep on their own holdings, has now been re-instated.

Jim Walker, president of the National Farmers Union of Scotland, said: “For the first time, we have been able to get government to admit it was wrong.”

Producers penalised through no fault of their own will now receive agri-environment payments worth about 450,000, said Mr Walker.

They will receive the same amount again in Sheep Annual Premium.

Scottish rural affairs minister Ross Finnie has always accepted that the executive got it wrong when it came to interpreting the rules in this case.

He announced an interim payment of 1000 for each producer in February as compensation for the disruption they had suffered.

Full compensation is expected to follow soon, said an executive spokesman.

• Agri-environment battle continues, FWi, 10 March, 2000
• Farmers hit by EU rules confusion, FWi, 04 February, 2000
  

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