Peter Kendall has been among those launching a tide of criticism towards the RPA

Peter Kendall has been among those launching a tide of criticism towards the RPA

The review into the Rural Payments Agency (RPA) has been welcomed by industry if its recommendations are acted on and could “signal the beginning of a major push to transform the agency from a below-standard public body to an effective and cost-efficient one” according to the National Farmers’ Union (NFU).

The review recommends a number of measures, including tightening up DEFRA’s oversight role, giving priority to clearing up errors in underlying claims data, and radically overhauling the internal audit function. It would also like to see the cost of processing Single Payment Scheme (SPS) claims brought down from £1,043 to £644 by 2013.

NFU president Peter Kendall said: “This detailed review is long overdue but it has attempted to get to the bottom of the problems at the heart of the RPA and what needs doing to sort them out,”

“The NFU hopes that its publication and the government response marks the beginning of getting the RPA to a place where it can hold its head high as an effective and cost-efficient organisation. Absolutely crucial to this, however, is DEFRA taking responsibility for the agency and ensuring that an effective action plan is drawn up and, more importantly, kept to.”

Agriculture minister Jim Paice has taken personal responsibility for the RPA’s performance as chairman of the new Oversight Board, keeping a promise made before the election.

Kendall added: “Experience over the last six years tells me it is a tall order, but DEFRA and the RPA must get to the bottom of issues affecting wrong claims and incorrect data. Not just so that European fines are avoided in the future, but because of the stress caused to farmers by the constant re-working of their claims and the uncertainty that brings.

“It is vital that we get a line drawn under the mess of the past as soon as possible, but what we don’t want are more over-optimistic promises and deadlines that aren’t, and can’t be, met. DEFRA and the RPA must now knuckle-down and do everything that is needed to get the payment system onto an even keel.

“It is going to take a lot of hard work and resources but it is essential that the RPA’s re-mapping problems are resolved too, and quickly. If they aren’t, the knock-on effects will be serious. There is no doubt the RPA faces a tough time in meeting payments targets this year but I am pleased to see the government is saying that the RPA is on target so far. As always the NFU will seek to work with DEFRA and the RPA to try to find practical ways forward of dealing with outstanding issues.”

Other recommendations included in the review are that electronic SPS forms should be more widely used and that targets should be weighted to accuracy as well as speed.