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Agriculture: Subsidies

Volume 457: debated on Monday 5 March 2007

To ask the Chancellor of the Exchequer what estimate the Secretary of State for Environment, Food and Rural Affairs provided him with in each month since January 2006 for the Department for Environment, Food and Rural Affairs’ contingent liabilities for provisions for disallowance arising from Common Agricultural Policy schemes, notably the single farm payment and the possible financial correction which may be demanded by the European Commission; and if he will make a statement. (124049)

The estimate of potential disallowances is reviewed continually by DEFRA and Rural Payments Agency officials. Provisions for potential disallowances, totalling £116 million (in respect of England only), were made in DEFRA accounts for 2005-06 (covering SPS 2005 and predating historic CAP schemes).

On 20 February 2007, DEFRA’s Spring Supplementary Estimate included a claim on the Reserve of £305 million for 2006-07. The claim provides estimate cover for provisions in respect of potential financial corrections to EC reimbursements for SPS 2005, any new provisions for SPS 2006 payments to farmers and other CAP Schemes. Final figures for provisions will be provided in DEFRA’s 2006-07 accounts.