Scottish Government urged to address the deepening cash crisis
NFU Scotland is to meet with Scotland’s First Minister Nicola Sturgeon tomorrow evening (Tuesday 8 March) ahead of a rally of farmers and crofters to be held at the Scottish Parliament in Edinburgh on Thursday 10 March.
The rally will highlight to Scotland’s politicians the deepening cash crisis in Scotland’s countryside. With prices for virtually every farm commodity on the floor and having endured the wettest winter on record, Scottish farmers and crofters want all Scottish MSPs ahead of the May election to understand that the farming industry’s position as the cornerstone of the whole rural community is under threat.
The key driver behind the current crash crisis is Scottish Government’s failure to deliver support payments to farmers and crofters because of its £178 million investment in a flawed IT delivery system that is not fit for purpose. To date, just over £100 million of support under basic Common Agricultural Policy (CAP) schemes has been paid out from a total budget of almost £400 million.
That has contributed to a cash flow crisis on farm that has ramifications for the many hundreds of Scottish businesses who have farmers and crofters as their main customer.
NFU Scotland President Allan Bowie said: “We welcome the opportunity to meet with the First Minister and continue a dialogue about the importance of Scottish farming that started at the Highland Show. At that time, and when the First Minister met us on farm in late August, concerns about Scottish Government’s IT system and its ability to deliver the new CAP schemes were already being raised by the Union.
“Since then, Scottish Government has consistently missed its own deadlines on support payments and a gaping hole in the Scottish rural economy has emerged.
“That has brought business in the countryside to a standstill. Farmers may be recipients of support but that money very quickly leaves bank accounts to pay wages, invest in businesses and secure the feed, seed, fertiliser and machinery needed to ensure Scotland continues to grow and rear the raw materials for our food and drink sector.
“The £300 million funding gap in the rural economy means that banks and the supply trade are currently providing the credit facilities to the majority of farm businesses. That is unacceptable, particularly when the mess is of Scottish Government’s creation.
“With the Scottish parliament closing down on 24 March ahead of the Scottish elections in May, Scottish Government has a short window in which to turn this disastrous situation around.
“We want our Cabinet Secretary Richard Lochhead to finish what he started and deliver payments to farmers now. If that requires intervention by the First Minister to deliver then she would have the agricultural communities backing.
“Last week, Scottish Government bypassed the flawed IT system to roll out LFASS payments to vulnerable hill farmers and crofters. Now they need to do the same for the basic payment scheme.
“With half of farmers still to be paid and three quarters of the money still to be paid out now is the time to ditch the flawed IT system and deliver much needed cash flow to rural businesses. We must not be left to take the burden of what has been a badly implemented and costly IT system.”
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