WIREDGOV

In a statement to Assembly Members the Minister said he was pleased that the UK Government had agreed with his proposals for splitting the UK’s share of the Common Agricultural Policy (CAP) budget and that he welcomed the even handed approach they had shown.

In the run up to this CAP announcement the Minister had spoken on numerous occasions to the Secretary of State for Environment Food and Rural Affairs, Owen Patterson and had pressed for a fair split of CAP funding that offered the  best deal for Wales.

The UK Government confirmed that the Pillar 1 budget would be allocated in the same proportion as it is now which will mean an annual budget of €322m by 2019 in Wales, based on current prices. This means all parts of the UK will take the same percentage cut of £1.6% against the 2013 budget.

For Pillar 2 Wales will receive €355m  in current prices for 2014 -2020. This is an increase of 7.8% on the current 2007-20013 period.

Alun Davies said:

“I believe this decision on CAP is a good result for Wales.

“Scotland had of course made a vociferous case to secure a much larger share of the UK budget pot.  I opposed that argument because I felt it was unfair to Wales  and would have further reduced our share of CAP. I am very pleased that the Secretary of State agrees and has decided to split the UK budget in the way I proposed.

“Today’s decision means that all parts of the UK will take the same size percentage cut on Pillar 1 and will benefit to the same degree from the uplift of the UK’s Pillar 2 budget ceiling.  This is welcome news and the fairest deal for Wales.”

The Minister confirmed  that he had extended the CAP directs payment consultation until the end of November with a view to taking final decision on Pillar 1 direct payments around Christmas time.

An announcement on the way forward on CAP, including the transfer of funding between the two pillars of the CAP is expected in January. A consultation on the new RDP schemes will be published in the Spring.