Foot and Mouth Disease (Hansard, 27 May 2004)

§ Baroness Byford
asked Her Majesty's Government:
Further to the Written Answer by the Lord Whitty on 6 May (WA 134), what proportion of each of the 28 claims outstanding following the foot and mouth disease outbreak is in dispute. [HL2977]

§ Lord Whitty
The proportion of each contractor account in dispute varies from account to account depending on the mix of evidential, quantum, accounting and legal issues arising in each dispute. The department does not comment on disputes that are, or may be, the subject of litigation, alternative disputes resolution procedures, forensic examination or formal investigation.

§ Baroness Byford
asked Her Majesty's Government:
Further to the Written Answer by the Lord Whitty on 6 May (WA 134), who are the 28 contractors still in dispute with the department following the foot and mouth disease outbreak; and which of them are farmers or involved in farming. [HL2978]

§ Lord Whitty
It is neither appropriate nor fair to identify the names of contractors with whom the department is in dispute given that these are ongoing disputes, which are being concluded through litigation or alternative disputes resolution procedures. Although some contractors and their representatives have sought to publicise their disputes through the media for reasons unknown to the department, others 163WA have chosen not to do so and no useful purpose is likely to be served by the identity of contractors being divulged in these circumstances. From information held centrally, none of the contractors with whom Defra is in dispute appears to have farming as their primary business activity. All of the contractors, to either a greater or lesser degree, have supplied services to the farming sector since the start of the foot and mouth disease outbreak in 2001.

§ Baroness Byford
asked Her Majesty's Government:
Further to the Written Answer by the Lord Whitty on 6 May (WA 134), whether any part of the total disputed £55.4 million following the foot and mouth disease outbreak is due to be paid to the Government by the European Union; and whether the disputes may adversely affect that sum. [HL2979]

§ Lord Whitty
No part of the total disputed £55.4 million following the foot and mouth disease outbreak is due to be paid to the Government by the European Union. The claim to the European Union relates to invoices which are not in dispute and accordingly the disputes do not adversely affect sums payable by the European Union.

§ Baroness Byford
asked Her Majesty's Government:
Further to the Written Answer by the Lord Whitty on 6 May (WA 134), whether the disputes over the charges claimed by contractors following the foot and mouth disease outbreak have resulted in the withholding of any moneys; if so, how much; and whether there is a deadline by which they have to be paid. [HL2980]

§ Lord Whitty
The disputes over the charges claimed by contractors following the foot and mouth disease outbreak have resulted in the withholding of some £55.4 million from contractors. There is no deadline for payment of the moneys withheld since they are disputes where Defra has been advised in each case that the retention is justified fully on any or all of legal, accounting and quantum grounds.