Minister warns an early end to ban is unlikely

3 October 1997




Minister warns an early end to ban is unlikely

By Tony McDougal

Farm minister Jack Cunningham has warned farmers that prospects of an early lifting of the beef ban or compensation for green £ revaluations are unlikely.

Speaking at the NFU fringe meeting on the first day of the Labour Party conference in Brighton, he revealed that there was still scepticism in Europe about the UKs measures to tackle BSE.

Dr Cunningham had hosted a dinner at the weekend for members of the European Parliaments BSE temporary committee of enquiry and had found there was considerable work to do to convince members that the beef ban should be lifted.

The definitive link between BSE and new variant CJD in humans, revealed this week, would have profound consequences both for MAFF and the government. Speaking later he said that calls for a judicial review and compensation for nvCJD victims would have to be considered seriously.

He bitterly attacked UK companies which had been caught breaching the beef export ban, saying that one company involved had now been closed down and its beef seized and destroyed.

"We now have new powers through parliament to enable courts to impose heavy fines and custodial sentences of up to two years for those breaking the law. We are not prepared to allow them to wreck our chances," said Dr Cunningham.

Formal proposal

He added that the government was close to submitting a formal proposal to the EU Commission to allow animals born after a certain date, believed to be Aug 1, 1996, to be exported.

Commenting on compensation for the revaluation of sterling, Dr Cunningham said the Fontain-bleau agreement meant that 75% of the compensation wouldeffectively come from the UKtreasury.

While he had not rejected the repeated requests from the NFU, the final decision was up to the Chancellor of the Exchequer. "But one has to bear in mind the difficult public expenditure situation we are in."

Ben Gill, NFU deputy president, said every other EU state which had faced significant revaluations had received compensation. "Farmers have been bruised, severely bruised by the strength of sterling. We need transitional support," he said.

And Ian Pettyfer, NFU Devon county chairman, argued the Treasury had benefited to the tune of £60m from the reduced over-30-month scheme payments due to the successive revaluations.

Questioned by Scottish crofter Hugh Raven on modulation, or capping support payments, Dr Cunningham said he would be happy to introduce the policy in the UK if decisions on payment ceilings were decided nationally. But he was not happy with proposals that would actively support small, inefficient farms at the expense of larger, successful commercial UK farms.

Ben Gill: Farmers are bruised by sterlings strength and need support.

Jack Cunningham – Green £ compensation lies with Treasury.


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