Scotland could be winner from flat-rate funding - Lyon

2.26.56pm GMT Mon 8th Feb 2010

George Lyon, Liberal Democrat MEP for Scotland, has called on Scottish and UK Governments to consider supporting moves towards a fairer and more transparent distribution of European agricultural support funding.

Speaking at the National Sheep Association AGM, Mr Lyon outlined how Scottish farmers could be winners from a per hectare calculation of Member States national envelopes of both rural development monies and single farm payments.

2009 George LyonCommenting, Mr Lyon said:

"Initially my reaction to any redistribution of funding was to stick with the safety of the status quo. I thought it would be a bad thing for both Scotland and for the UK as we would be losers.

"However our current SFP funding package is way below the EU-27 average. The figures demonstrate starkly that if the total national envelope of funding for each Member State was allocated on a per hectare basis then Scottish farmers could be winners.

"If Scotland's national envelope of SFP money was allocated using the average EU 27 payment per hectare, as New Member States called for last week, then Scotland's total allocation would nearly double from our current £566 million.

"With rural development funding the impact would be even greater. Allocating Scotland's share of EU rural development funding based on an average per hectare payment would also see a dramatic rise in funding. The 2008 Royal Society report into Scotland's hill and upland areas recommended that a fairer settlement should be a priority for the Scottish Government.

"Scotland would not be the only beneficiary of such a change. The UK as a whole would benefit from a fairer allocation with a small boost to the UK national envelope for SFP and a substantial rise for rural development.

"The Scottish and UK Governments should examine closely if it is in our best interests to back new Members States calls for national envelopes for CAP funding to be determined on a flat rate per hectare for SFP as a fairer and more transparent way of sharing out the budget.

"This could lead to a much needed boost for Scottish farmers and rural communities, and mitigate the real threat of CAP budget cuts.

"What we need to fight tooth and nail against is the idea being floated in some quarters that Brussels decide a flat rate payment for every hectare across Europe. That is a ridiculous proposal and flies in the face of the principle of subsidiary."