Mr. Alan W. WilliamsTo ask the Secretary of State for Northern Ireland what estimates he has made of the impact on(a) farmers' incomes and (b) the economy of Northern Ireland of the European ban on beef exports. [12922]
§ Mr. AncramThe effect of the EU ban on beef exports, together with the fall in consumption on the UK market, was to reduce the value of cattle sales to commercial markets and into intervention by almost £120 million but this was offset entirely by compensation and support measures and the value of cattle output, including the over-30-months scheme, in 1996 was virtually the same as in 1995. The income of the agricultural industry fell by 6 per cent. in 1996, but this was mainly because of higher input costs.
The export ban had an immediate impact on the beef processing sector, with many short-term lay-offs, but the effects have since largely been mitigated by the operation of the over-30-months scheme. Related sectors such as animal food compounding, transportation and agricultural machinery have been adversely affected.