Written statement by David Miliband on the contingency arrangements for the delay to the start of the next Rural Development Programme for England 2007-2013 - 12 December 2006
In my statement of 1 November I said that I would keep the House informed about developments on contingency arrangements for rural development programme funding delivery. These are necessary because of delays, for reasons utterly beyond our control, to the start of the next Rural Development Programme in England, originally due for 1 January 2007.
As explained in my earlier statement our Programme, which will deliver important environmental, economic and social benefits in rural England, is dependent upon a new European Voluntary Modulation regulation which is still subject to a consultation procedure with the European Parliament.
Our aim is to minimise any disruption caused by this delay. We have indicated that we want to keep as near as possible to business as usual for those existing rural development schemes that will continue under the next Programme. But we have to take account of the legal and financial issues. Given the changes to the legal basis for the next Programme under the new Rural Development Regulation, our own policy priorities and the ongoing uncertainties over programme approval, we need to take a prudent approach. For some elements of the programme we shall need to continue our discussions with the EU Commission before we make funding available.
From 1 January 2007, Environmental Stewardship (Entry Level, Organic Entry Level and Higher Level) will remain open to new applications. Successful applicants will be informed that their agreements are provisional. This means that agreements might have to be amended in the light of any changes caused by the EU approval process. However, we do not anticipate any major changes because the schemes were approved in 2005 under the current England Rural Development Programme.
The Hill Farm Allowance will also continue in 2007.
The English Woodland Grant Scheme will remain open to new applications. It is unlikely that contracts will be issued until Programme approval is confirmed, but this will be kept under review.
Under the Energy Crops Scheme there are significant energy crop plantings planned in 2007, which have been carried forward from the existing programme. It is our intention to continue to support energy crop planting under the next Rural Development Programme. Although we will not be able to accept new applications from January, we expect to be in a position to accept applications under the new programme in summer 2007.
Responsibility for commitments to socio-economic projects made under the current Programme passed to the Regional Development Agencies (RDAs) on 1 October this year. This means that the RDAs expect to spend about £34m between now and October 2008 on ongoing commitments. However, the RDAs will not be able to enter into any new commitments in advance of programme approval, although they will continue to work with rural businesses to discuss potential future projects. We will keep this approach under review as discussions with the EU Commission proceed.
Further details about what these arrangements mean for our customers will be available on the Defra website, and from our delivery partners for the next Programme: Natural England, the Forestry Commission and the RDAs.Page published: 12 December 2006