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| Mistakes 'cost UK farmers £22.5m' | Mistakes 'cost UK farmers £22.5m' |
| (about 1 hour later) | |
| A series of government mistakes while bringing in a system of agricultural payments cost UK farmers up to £22.5m, the National Audit Office says. | A series of government mistakes while bringing in a system of agricultural payments cost UK farmers up to £22.5m, the National Audit Office says. |
| Its report on the Rural Payments Agency found the costs related to additional interest and arrangement fees on loans. | |
| The auditors found a catalogue of management errors meant thousands of farmers were left waiting for payments. | The auditors found a catalogue of management errors meant thousands of farmers were left waiting for payments. |
| A Defra spokesman said the department was fully aware of the problems and was committed to resolving them. | |
| The RPA was set up in 2001 as an executive agency of the Department for Environment, Food and Rural Affairs (Defra). | The RPA was set up in 2001 as an executive agency of the Department for Environment, Food and Rural Affairs (Defra). |
| It is responsible for allocating about £1.5bn under the EU's single farm payment scheme. | It is responsible for allocating about £1.5bn under the EU's single farm payment scheme. |
| 'Risks and complexities' | 'Risks and complexities' |
| The report points to failings at all levels in appreciating the risks and complexities involved in implementing the scheme. | The report points to failings at all levels in appreciating the risks and complexities involved in implementing the scheme. |
| The report's authors say the agency underestimated not only the number of people who would claim under the new system, but also the amount of land they would register. | The report's authors say the agency underestimated not only the number of people who would claim under the new system, but also the amount of land they would register. |
| The computer system that was used was not fully tested, it said. | The computer system that was used was not fully tested, it said. |
| The BBC's environment correspondent Sarah Mukherjee said that the agency's former chief executive was removed from his post in March, but remains on full pay of almost £114,000 a year. | The BBC's environment correspondent Sarah Mukherjee said that the agency's former chief executive was removed from his post in March, but remains on full pay of almost £114,000 a year. |
| The report's authors say that 5% of the farmers they spoke to were considering leaving farming altogether because of the stress and financial hardship caused by delays in payments. | The report's authors say that 5% of the farmers they spoke to were considering leaving farming altogether because of the stress and financial hardship caused by delays in payments. |
| Our correspondent added that industry experts say it is inevitable some farmers will go bankrupt as a result. | Our correspondent added that industry experts say it is inevitable some farmers will go bankrupt as a result. |