Allister Speaks Out on EU Agriculture Funds
16 November 2011
Below is the text of Mr Allister’s speech in the Assembly debate on Monday.
Undoubtedly, this is an important issue for now and for the future. I have three points to make about the EU’s role, and I will then say something about DARD. First, I find it pretty rich that an organisation whose accounts have been in such a shambles that they have not been able to be signed off by the auditor for 15 years should be the body that is pointing the finger and raising issues with member states. If it had put its house in order long since, it would be coming to this matter with much cleaner hands. Secondly, there has been inordinate delay in the auditory processes of the EU, which creates its own problems and is a contributor to the fact that this has become a protracted issue.
It is within that window that I have some sympathy for the Department of Agriculture and Rural Development here in Northern Ireland, because, as I understand it, whatever the signs in the wind were, it was not until 2010 that definitive findings indicated flaws and difficulties in 2004, 2005 and 2006. It was not until September 2011 that we had an indication of further problems up to 2007. It was that time lag of many years that, undoubtedly, made it very difficult for the Department to get ahead of the system and put in order what had been found to be wrong. In part, that is why there has been a delay in putting things right. The auditory process of the EU contributed to the difficulties that we are in now.
The third point that I want to make about the EU is that it is quite clear that what we loosely call fines are grossly disproportionate to the mischief found. I am sure that that will be an aspect of the case that is before the European Court of Justice. Sadly, of course, given the speed at which the European Court works, we are probably looking at another two years before we get a judgement. In the meantime, we have yet to find out what flaws the EU will find for 2008, 2009, 2010 and this year.
I will now discuss some of the issues that arise. The Chairman of the Committee spoke about money having to be paid back in fines, etc. Perhaps we have all spoken in those terms, but my understanding is that money is not actually paid back but is now held back by Brussels in respect of other area payments to make up the shortfall. If that is confirmed, may we be told whether that has already happened? As and when it does happen, where will the shortfall that it creates be made up from? How, in resource and capital terms, will that shortfall, which might amount to £100 million, be met? Perhaps the Department will consider, as a gesture of its regret about how it has handled the issue, forgoing the largesse that it intends bestowing on itself for new headquarters. That might be a suitably contrite contribution from the Department, given the mess that we are in over fines.
There are key questions. It is also regrettable that the Minister seems to lack the vision and enthusiasm to tackle some of those issues. I received a written answer from the Minister to my question about the latest tranche of £4 million of clawback. She states:
“My Department is considering if there is merit in contesting this disallowance. However, there are likely to be significant practical difficulties in doing so as the onus will be on my Department to demonstrate that the Commission has either been manifestly unreasonable in its approach or has erred in its interpretation of EU legislation. This is much more difficult”.
Mr McCarthy: The Member asks a very important question. The Minister clearly stated:
“To date we have set aside £82m to deal with the fines up until 2009”.
Does that not indicate that the Minister is not waiting for money to be withheld by Europe but has £82 million sitting somewhere, ready to hand over?
Mr Allister: I trust that it is not end-of-year funding or we will lose it. I am puzzled about whether, if there is a legal challenge before the court, that has frozen the demand, or whether there will be a clawback in the meantime, despite the ongoing legal proceedings before the European Court. We need clarity on that. I doubt that we will get it today, nor would we have got it if the Minister had been here, because, frankly, she does not have a grasp of her brief at all, and we would have had read out to us what has been presented by the officials. Legions of questions need answers, and the sooner they are answered, the better.
