Deputy First Minister John Swinney has defended his government’s “significantly defective” IT programme for paying European Union (EU) support to farmers.
Farmers were warned an IT system that met their requirements would be complex and could cause delays but told the government “that was a price they were prepared to pay”, Mr Swinney told BBC Radio Scotland’s Good Morning Scotland programme.
The programme, developed to deliver the EU’s Common Agricultural Policy (CAP) payments to farmers, crofters and rural businesses, has been beset with lengthy delays, missed payment targets and rising costs, an Audit Scotland report found.
The spending watchdog warned there remains “significant defects” slowing the process down but Mr Swinney said it is “nonsense” to suggest the programme does not work.
The Auditor warned the Scottish Government could face penalties of £125 million for any delays – but the Deputy First Minister said he doesn’t “recognise that number”.
Mr Swinney said: “We have to look very carefully at all of the issues raised in the Auditor General’s report.
“We have also been responsible for taking urgent action to remedy the situation – 82% of farmers have had a payment administered through this new IT system.
“So, the idea that this system doesn’t work, I’m afraid, is nonsense.
“The industry was very clear with government that it wanted us to promote more options and more possibilities to be put into the scheme.
“We warned the industry in 2014 that if we did that it might jeopardise the timetable for payments, and the industry said to us that that was a price that they were prepared to pay because it would deliver a scheme more in their interests.
“So, we accepted that, that added to the complexity.
“Now, I accept that as we have taken forward this scheme we have encountered significant difficulties in the design of the IT programme.
“That is because we started this programme without a finished, defined proposition of what we are trying to deliver, and that is never a good thing.”
In its report, Audit Scotland said: “There is a high risk that the programme will not deliver its aim to minimise financial penalties, which are levied by the EC for not complying with regulations.
“The Scottish Government has not undertaken a detailed assessment of the risk of financial penalties (of) between £40 million and £125 million.”
Mr Swinney said: “I don’t recognise that (£125 million) number.
“Obviously it has to come out of public funds available to the Scottish Government if such a time arises, but I can assure the farming community this morning that the Scottish Government is 100% focused on ensuring that this scheme is compliant by the deadline of the EU.
“What I am absolutely renowned for is my focus on delivering the goods and I am focusing the government 100%, and the Rural Economy Secretary will be focusing 100% likewise, on making sure that we deliver the scheme in a compliant fashion before June 30.”
Conservative North East MSP Peter Chapman called for a “full investigation”into the delayed farm payments.
“The Audit Scotland report is among the most damning ever to be produced by the organisation,” he said.
“It echoes what communities across rural Scotland have been saying for some time, but instead of taking responsibility, John Swinney has opted to suggest the industry only has itself to blame.
“That’s a disgraceful conclusion to draw and farmers will not forget this episode which has starved the rural economy of hundreds of millions of pounds.”
Labour rural affairs spokeswoman Claudia Beamish called for an “urgent statement to parliament”.
“John Swinney’s complacent approach suggests the SNP government just isn’t taking things seriously enough,” she said.
“There remain too many unanswered questions for the SNP to try to sweep this under the carpet.”
