British Sugar refuses to pay levy refund admin charge

British Sugar has refused to pay administration costs on returning a levy refund to growers, with NFU Sugar committing to paying the £80,000 out of its reserves.

Growers of sugar beet during 1999 and 2000 were due a refund on levy payments after a Court of Justice of the European Union ruling confirmed growers were overcharged by the EU Commission.

Growers of sugar beet during 1999 and 2000 were due a refund on levy payments after a Court of Justice of the European Union ruling confirmed growers were overcharged by the EU Commission.

Sugar processors in the EU had challenged the over-calculation and more than £6 million was due to be refunded, split between growers and British Sugar.

Payments

Due to the way the levy was collected, the Rural Payments Agency will make the repayment to British Sugar, who will distribute it to the growers.

But this will rack up administration costs of about £80,000 and Farmers Guardian understands British Sugar refused to absorb any of the costs out of its own windfall.

British Sugar wanted the grower base to pay the administration costs, meaning farmers would have had to pay to have their own money returned to them.

NFU Sugar has committed to covering the full £80,000 costs on behalf of growers from its reserves.

As British Sugar did not have the 1999 and 2000 records, it was using its 2001 records, likely to be very similar.

Growers will receive a form from British Sugar, or should make contact if they do not receive a form but believe they were entitled to the refund.

NFU Sugar

Commenting on the ruling, NFU sugar board chairman Michael Sly said the board was working closely with British Sugar to ensure the sugar beet growers get a refund.

He urged all growers to contact the dedicated helpline if they did not receive a form.

He said: “The clock is ticking and we do not want any grower to miss out.”

British Sugar