HL Deb 25 April 2002 vol 634 c57WA
Lord Kimball

asked Her Majesty's Government:

What they intend to do with the £2 withheld from the sheep annual premium for sheep farmers in England. [HL3878]

Lord Whitty

The reformed sheepmeat regime agreed by the EU Council of Ministers in December sets the rate of the sheep annual premium at 21 euros per eligible animal (around £13), with a supplement of 7 euros (around £4.30) payable in less favoured areas. In addition, the new regime introduces a sheep national envelope which can be used to provide extra support to sheep producers and to encourage environmentally sustainable farming practices. Member states may increase the size of their national envelope by reducing sheep annual premium payments by up to 1 euro per eligible animal. Using these provisions, the Government could increase or reduce the basic rate of the sheep annual premium by up to 1 euro (approximately 62p). We are currently considering options for implementing the sheep national envelope in England and whether to make any adjustments to the sheep annual premium.