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House of Commons Hansard
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Agriculture: Subsidies
06 March 2007
Volume 457
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To ask the Chancellor of the Exchequer when he was informed by the Secretary of State for Environment, Food and Rural Affairs that contingent liabilities for provisions for disallowance arising from Common Agricultural Policy schemes, notably the single farm payment, and the possible financial correction the European Commission may apply would be (a) £131 million and (b) £305 million; and if he will make a statement. [124335]

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The estimate of potential disallowances is reviewed continually by Defra and RPA officials. Provisions for potential disallowances, totalling £116 million (in respect on 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.