Brown unveils 500m aid package
21 September 1999
Brown unveils £500m aid package
By Johann Tasker
Agriculture Minister Nick Brown has unveiled a £500 million aid package for Britains farmers.
Ha also announced plans to drop the controversial ban on beef on the bone.
The size of the aid package, which was announced in London yesterday afternoon (Monday), took farmers and the mainstream media by surprise.
Both the Financial Times and BBC News Online reported over the weekend that the aid package would be worth about £80m.
Farming industry sources early on Monday afternoon told Farmers Weekly they expected about £160m in aid.
It now appears that the latter figure was more accurate.
Of the £500m eventually announced, a total of £150m will be new money available from Whitehall and Brussels, Mr Brown confirmed to reporters.
Among other measures, the government will pay an estimated £22m worth of Specified Risk Material charges until March 2002, he said.
In a similar deal, the £7 fee for cattle passports, which was to be introduced next week, will also be postponed until March 2002.
As predicted, upland beef and sheep farmers will benefit to the tune of £60m from an increase in Hill Livestock Compensatory Allowance payments.
In addition, there will be a one-off £1m package to encourage farmers to get involved in collaborative marketing ventures with their fellow producers.
Mr Brown also announced a full investigation of meat hygiene inspection charges and the structure of the Meat Hygiene Service to begin today (21 September).
And in a move which will benefit small abattoirs, a derogation from Brussels will see a reduction in inspection charges for low-throughput slaughterhouses.
A further £293m was available to British farmers as agrimonetary aid to offset the effects of the strong Pound, said Mr Brown.
The package will be funded largely by British taxpayers. Some may grumble, but many will be pleased with plans to finally drop the ban on beef on the bone.
Liam Donaldson, the governments chief medical officer, has now advised Mr Brown that beef on the bone can be eaten but not used in manufacturing.
Mr Brown said the advice would be published within days, but the ban would stay until Prof Donaldsons counterparts in Scotland and Wales agreed it could go.
The complete package is already being seen as an attempt by ministers to de-rail farmers plans to launch a series of mass protests to highlight the crisis in farming.
Many livestock producers feel abandoned by an urban-based government and a big demonstration had been planned in Mr Browns Newcastle constituency this Friday.
Producers had also pledged to march through the seaside resort of Bournemouth on the second day of the Labour Party conference next Monday (27 Sep.)
Farmers Weekly understands that Tony Blair intervened in the negotiations because he was eager to avoid a confrontation with thousands of angry farmers.
Organisers claimed up to 10,000 farmers would attend the Bournemouth rally.
How many actually turn up on the day now depends on whether farmers believe the emergency aid package they have finally won is enough to ease their plight.