Government set to slash South East
farmer’s incomes by 20%

The European Commission today published proposals that will allow the UK Government to divert up to 20% of income earmarked for farmers into rural development schemes. The Government will no longer be required to pay this money back to farmers in the form of match-funding.

The proposals originated directly from Tony Blair at the December 2005 European Council summit which ended the UK Presidency of the EU.

European Commission President Barroso has said: "The Commission will have difficulty in taking forward these suggestions. These risk undermining the fundamentals of agriculture policy."

Conservative Agriculture Spokesman in the European Parliament, Neil Parish said:

"If the Government's inexcusable delays in paying out the Single Farm Payment were not enough, there is now a proposal on the table that would cut it by a fifth.

“Tony Blair fought tooth and nail at the December European summit to give the Member States the right to transfer up to 20% of farmers' payments into their rural development budgets - and this without any obligation to match-fund these amounts.

"I am not against sensible moves to give Member States greater flexibility but only the British Government will take up this option. This would put our farmers at a serious competitive disadvantage in relation to their European counterparts.

“And I do mean UK farmers, because the plans would not allow different treatment for English, Welsh, Scottish and Northern Irish farmers. The 20% cut would apply to everyone from Lands End to Reading."

The proposal will now be voted upon in the European Parliament. The Parliament recently declared:

'When laying down the modalities of the relevant legal acts, the European Parliament will evaluate the feasibility of these provisions in respect of EU principles, such as competition rules and others; the European Parliament currently reserves it position on the outcome of the procedure.'

Nirj Deva, MEP for South East England continued:

"I will do everything I can to prevent this proposal damaging the interests of our farmers.

“They have been through quite enough in the past few years.

“At this stage, the Conservatives in the European Parliament have not ruled out a legal challenge in the European Court of Justice. "