Orkney and Shetland MP Alistair Carmichael has warned Ministers that retrospective changes to the penalty system for breaches of EU animal control regulations are unfair and could leave Northern Isles farmers out of pocket.

After an audit of the UK’s procedures was carried out last year, the Scottish Government amended the way in which the level of penalty charges was calculated. As a result of these changes, the level of penalty for non-compliance increased from 1 to 3% of the essential Single Farm Payment.

Many farmers whose livestock had been inspected earlier in the year only discovered in November 2009 that they would be forced to pay the higher charges. Farming groups have criticised this move and are considering legal action against what they view as the retrospective manner in which the higher penalties were imposed.

Commenting, Mr Carmichael said:

‘While farmers accept that penalty charges are an important aspect of an effective livestock control system, it is clear that in many cases these new charges are wholly disproportionate to the ‘offences’ that have been committed.

‘It is only right that factors such as farm size and number of livestock in the business should be taken into account when penalties are being considered. The present penalty system is a blunt instrument which fails to distinguish between serious breaches and minor errors.

‘It is absurd that some farmers with several thousand animals who made two or three errors in their record keeping are now facing the prospect of losing 3% of their Single Farm Payments.

‘The retrospective manner in which the new rules have been implemented has also meant that those farms hit by these charges have had to reconsider their plans for the coming year – this at a time when many businesses are already struggling to make ends meet.’