§ Lord Hughes of Woodsideasked Her Majesty's Government:
What action they will take when the operation in the United Kingdom of the calf processing aid scheme becomes voluntary on 30 November. [HL3171]
§ Lord Donoughue1.2 million calves have been processed under the scheme since April 1996. The UK has thus made the most significant contribution to reducing beef output in Europe. The obligation to operate this scheme or the Early Marketing Scheme for Veal Calves expires on 30 November 1998 and it seems unlikely that many member states will opt to slaughter young calves, that scheme alone being available thereafter on a voluntary basis.
Throughout its life in the UK, the Calf Processing Aid Scheme has been criticised from a number of quarters. It has also inflated the cost of calves for beef production to the detriment of beef finishers.
After widespread consultation with industry interests, my colleagues and I have decided that it would be inappropriate to maintain this scheme in the UK. Its continuation would distort calf prices in the short term and artificially constrain the production of home-reared beef in the medium term. It must be borne in mind that we will continue to make a very significant contribution to balancing the European Beef market by operating the Over Thirty Months Scheme for cattle, at very considerable expense to the UK Exchequer.
The Government have therefore decided that the scheme will close on 30 November 1998.