GOVERNMENT incompetence and a litany of broken promises are threatening to derail reforms designed to deliver a more vibrant and prosperous rural economy.

That was the verdict of Yorkshire farmers and other rural business owners, who were joined by Vale of York MP Anne McIntosh in protest at Thirsk Auction Mart.

It was supposed to have been a joyous occasion, celebrating Red Tractor Day, when farmers expected to celebrate the wealth of fresh and delicious food produced for sale in UK supermarkets.

Instead, they railed against the Government's slowness in meeting English farmers' claims under new reforms of the Common Agricultural Policy (CAP) announced in January 2005.

Instead of focusing purely on food production, the reforms set out to recognise the significant environmental and landscape management work carried out by farmers and to encourage them to concentrate of producing what the market demands

But so far, only about 47,000 claims have been paid, representing just 39.55 per cent, whereas in Europe 98 per cent of payments were made before Christmas

The dream of changing the emphasis of farming and opening the way for farmers to develop more profitable and self-sustaining businesses, now "lies in tatters" argued Richard Bretton, chairman of the NFU North East Regional Board.

But, he said, this was only in England, as the reforms had been implemented seemingly without a hitch not just across Europe but also in Scotland and Wales.

Mr Bretton said: "The government deliberately chose to implement an overly complicated system in England without thinking through the implications of that decision. Today it is rural England that is paying the price.

"Not only are farmers themselves in dire financial straits, with many ancillary industries suffering the consequences, the rural development that should have arisen out of the reforms is nowhere to be seen, with the farming industry in complete limbo until at least later this year."

David Hugill, NFU county chairman for North Riding and Durham, said the Red Tractor Day had "brought home to us is that while we are keeping our promises, producing food, developing new crops such as energy crops and delivering the landscape and environment on which the local tourist industry depends, the government is failing miserably to keep its side of the bargain.

"That is something that everyone needs to take notice of because if the government fails to implement the Single Payment Scheme fully by the end of June, the British taxpayer will be presented with a very large bill to cover EU-imposed fines."

Updated: 10:22 Tuesday, April 25, 2006