§ Lord Stanley of Alderleyasked Her Majesty's Government:
Whether it is within their powers under the principle of subsidiarity, to require the Beef Special Premium to be paid at point of slaughter; and
How many extra staff have been employed to administer the Beef Special Premium Scheme and at what extra cost; and
Whether they will reduce the two-month retention period in the Beef Special Premium Scheme to facilitate orderly marketing and avoid over fat cattle, particularly during the critical autumn months; and
69WAWhether misreading the label in a bullock's ear, for instance E for F, would invalidate a farmer's claim for Beef Special Premium and, if so, whether they intend to institute an appeal procedure; and
Whether they will amend the Beef Special Premium Scheme, having consulted those involved in operating it, and if so, when will be the first opportunity to do this; and
Whether they will reconsider the Beef Special Premium Scheme in the light of their commitment to deregulate.
Earl HoweAll member states have the option of paying the Beef Special Premium either at-slaughter or on-farm. Her Majesty's Government considered very carefully whether to opt for payment at-slaughter. The EC rules make it clear that payment at slaughter is a viable option only if it does not deny premium to producers who would have a right to receive it, were it paid on-farm. The structure of the UK industry is such that cattle generally change hands between the age of 10 months and slaughter. If the scheme were run at-slaughter, Her Majesty's Government would be open to legal challenge from any producer who felt aggrieved at being deprived of the right to claim premium on cattle at the age of 10 months. Her Majesty's Government therefore concluded that it had no option but to pay the premium on-farm.
[Approximately 117 extra staff, at a cost of some £0.9 million, have been required to administer the new scheme in Great Britain]
Some 110 staff, at a cost of £4.4 million were required to run the scheme administered by the Intervention Board Executive Agency at-slaughter in 1992. The new on-farm scheme administered by the Agriculture Departments in Great Britain requires some 227 staff at a cost of about £5.3 million in 1993.
The two-month retention period is an absolute requirement under the EC rules if animals are to qualify for premium. Given the need to carry out on-farm checks to ensure that cattle on which premium is claimed are actually present, we would not wish to see the retention period reduced, nor is there any prospect of securing EC agreement to such a reduction.
In view of the complexity of the new scheme, we accept that producers may make genuine mistakes when applying for CIDs or for premium. We will therefore operate the scheme as flexibly as we can within the rules laid down by the EC. However, the sums of money involved are considerable and it is therefore in producers' interest to make every effort not to make mistakes.
The basic principles of the scheme, including the two-stage payment and the requirement for identification documents, can only be changed on the basis of a proposal from the Commission to the Council of Agriculture Ministers. We will be monitoring the operation of the new scheme closely, in consultation with the industry.
70WAThe scheme we have introduced has to comply with the requirements of EC legislation. Subject to this, we have made the documentation as simple as possible. We will, however, take any opportunity we can to simplify the running of the scheme, in line with the Government's commitment on deregulation.