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Posted by | September 15, 2015.

He said that even if MAF agreed to pay Conveyancing Costs compensation there would be administrative difficulties. Some farmers might have failed to respond promptly to enquiries while in other cases, even if Mr A has responded promptly, the payment deadline would have been missed. He said that MAN might want to take the view that where a query had been raised with a farmer before mid-November and no reply has been received.

The Regional Director responsible for the Centre wrote to the Agencies and Citizen’s Charter Division about the award of compensation for delayed payments. She said that although 39101 payments had been cleared by 29 December that reflected only 83 of the total They would need to consider paying interest on the remaining 7773 payments.

It would not be a question of paying interest automatically if farmers had failed to provide the information that MAFF needed to process their claims by the due deadline. She suggested 15 November as an appropriate cut-off date for making enquiries, and 30 November as an appropriate cut-off date for the receipt of replies. The Director told the Permanent Secretary that an urgent question has arisen about the payment of compensation for the delay in making payments. The President of the NFU had written to the then Minister asking for compensatory payments and MAFF had received similar requests from individual farmers.

The Director said that the latest figures suggested that 83% of the total number of claims had been paid by the end of December. He estimated that there were 7,773 payments outstanding with an estimated value of £160 million. A total of approximately £500,000 compensation would have to be paid if the average delay in payment proved to be two weeks. He said that legal advice was that, where any action had been initiated by a claimant in the UK, the courts would be likely to award interest by way of compensation for delay where no proceedings had been initiated the case for compensation would be weaker.