The standard costings used by my Department to cost works eligible for grant aid under the on-farm investment schemes were reviewed immediately prior to the introduction of the national scheme of investment aid for the control of farm pollution in June 1999 . Following the review, a 12% increase was applied to the costings which had been employed under the Control of Farm Pollution Scheme 1994-99. The standard costings are considered to be a fair reflection of the average cost of carrying out such investments, excluding value added tax.
In the Programme for Prosperity and Fairness, there is a commitment to an annual review of the standard costings used to determine grant aid payable under the on-farm investment measures.
The applicant concerned was issued with written approval to convert an existing loose house to a slatted house and to construct an effluent tank under the national scheme for the control of farm pollution on 28 September 1999. The measurements of the proposed investments were calculated and costed at £15,349.74 using standard costings. Grant aid at the rate of 40% of the standard cost was approved.
A final inspection of the investment works on 15 May 2000 revealed that the dimensions were less than those provided for in the approval document. Accordingly, the costings were re-calculated at £13,984.81. Based on grant rate of 40%, the applicant was paid £5,593.92 on 22 September 2000.
