The Rural Payments Agency (RPA) has hit back at calls for it to unfreeze the payment suspension that has created widespread consternation, urging all Producer Organisations (POs) to respond promptly to requests for further details or documentation.

It claims this will ensure that the current review concerning their recognition status under the Fruit & Vegetables Aid scheme can be completed as quickly as possible and the suspension of aid payments lifted.

Following the European Court of First Instance’s decision about PO recognition - particularly the court’s view that a key component of recognition was the PO’s responsibility to ensure it provides all necessary facilities to its members - a revised policy on recognition requirements was introduced.

The revised policy clarifies that POs must include facilities for the collection, storage, packaging and marketing of members’ produce (subject to limited exceptions).

But many POs are angry that the RPA has not reacted quicker to the European Court’s decision and say it is not clear where they stand.

The RPA said, following its initial assessment of the recognition status of individual POs, that a small number already demonstrate full compliance with the revised policy. The RPA has already confirmed this with the POs concerned and removed the payment suspension.

In a statement, the RPA said: “For the remainder of POs, [we are] continuing to assess information supplied and, where necessary, seeking further clarification and documentation with the aim of completing the review by 31 March, 2010. As soon as we determine individual PO compliance with the revised policy, suspension of aid payments will be lifted and any outstanding claims for that PO addressed.

“The RPA was able to release around £4.5 million of payments to POs shortly before Christmas in respect of entitlement to aid accrued prior to the judgement. Only a small number of claims have been received for aid payments after that date. This may be because POs are awaiting the results of the assessment before submitting further claims.”

The RPA is urging organisations to continue to submit annual claims as normal. This will enable completion of verification and eligibility checks so that claims can be progressed as quickly as possible.