The Environment, Food and Rural Affairs Committee criticises the European Commission's proposed sweeping reforms of the CAP that would see the current complex and bureaucratic system of direct payments replaced by one that could be even worse. These changes include a new tier of environmental conditions, with penalties for farm businesses that do not comply or fail to meet new criteria for 'active' farmers, farm size and number of employees. The Committee sets out the key principles the UK government should promote. The first objective of the CAP should be to maintain and enhance the EU's capacity to produce food with a significant degree of self sufficiency and, in the long term, less reliance on income support from the tax payer. The UK's future food security is threatened by the low profitability of its agriculture. More than half of UK farm businesses would be unprofitable without the support they receive through the CAP. The Committee concludes that direct payments have a place within the CAP for as long as business conditions in agriculture fail to deliver a thriving and profitable industry. The CAP must deliver a competitive and viable agricultural sector that produces safe and high quality food with a lower environmental impact. The UK should press for the EU to argue more strongly for recognition of environmental and animal welfare production standards within trade agreements. The committee also warns that the EU proposal for a multi-tiered single farm payment will require expensive new computer systems and auditing.