§ 13. Mr. Huw Edwards (Monmouth)If she will make a statement on the payment of the slaughter premium where livestock was culled during the foot and mouth outbreak. [38005]
§ The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Mr. Elliot Morley)The payment of the slaughter premium subsidy depends on criteria that were not met by animals culled due to foot and mouth disease. However, we understand that compensation was based on the market value of the animal, including any expectation of its subsidy potential.
§ Mr. EdwardsI remind my hon. Friend that several farmers in the Grosmont area of Monmouthshire had their livestock culled. The valuers indicated that the slaughter premium would be added, and answers to parliamentary questions confirm that it should have been added. Will my hon. Friend consider this matter? If those farmers are entitled to the slaughter premium, it should be paid to them.
§ Mr. MorleySince my hon. Friend raised this issue, we have had significant discussions with the valuers association. The situation is a lot more complicated than it would at first appear. To provide my hon. Friend with a rough guide, from 22 March we introduced a standard valuation. Farmers had the choice of taking the standard valuation or opting for individual valuation. That standard valuation for cattle included the slaughter premium, and was used as a base line in relation to valuation, including the slaughter premium. Valuation should therefore also have included the slaughter premium. Having said that, there are some difficult cases, and we are taking advice. Generally, however, it should have been reflected in the compensation, although the rate of compensation for cattle could be regarded as generous.
§ Mr. Geoffrey Clifton-Brown (Cotswold)I declare my agricultural interest. The Minister will be aware that I have corresponded with him and tabled written parliamentary questions about the associated issue of movement restrictions that prevented farmers from being able to get the over-30-months scheme premium during the foot and mouth outbreak. It is wholly unreasonable that, after the Government imposed movement restrictions, farmers could not then benefit from the OTMS premium. Should not the Government consider that as an associated cost of foot and mouth and pay the premium?
§ Mr. MorleyWe have considered all the issues and examined that point closely. I repeat the point that farmers who were affected by foot and mouth of course went through a dreadful time but, throughout the outbreak, the livestock sector regarded the compensation provided as fair and generous. The compensation reflects many of the issues involved rather than the current market rate for animals.