§ Dr. CableTo ask the Chancellor of the Exchequer what estimate he has made of Government payments arising from the foot and mouth outbreak in the financial year 2001–02 expressed(a) gross and (b) net of reimbursement from the European Commission; and what the total cost is. [8015]
§ Mr. Andrew SmithThe costs of FMD for the full financial year are not yet known and cannot be reliably estimated. Up to 10 October, the Government had spent £1.5 billion on eradicating foot and mouth, of which just over £1 billion has been on compensation to farmers. In addition, £308 million had been spent on the Livestock Welfare Disposal Scheme, and the Government have put in place several measures to help the countryside recover from foot and mouth disease, including: deferral of tax, VAT and National Insurance contributions which has helped over 18,000 businesses; establishment of a £50 million Business Recovery Fund; establishment of rate relief scheme covering affected areas; establishment of a matched funding scheme for charitable donations; and the Government making additional lending available through the Small Firms Loan Guarantee Scheme.
The UK is eligible for reimbursement from the European Commission of 60 per cent of the costs of compensation for the slaughter and destruction of animals, cleansing and disinfecting of holdings and equipment and the transport of carcases. The EC have approved an initial payment of euro 355 million, and we anticipate a further payment being made during 2002.