HC Deb 26 April 1996 vol 276 cc323-4W
Mr. Marlow

To ask the Chancellor of the Exchequer what is the annual cost of measures taken to resolve the BSE problem as decided by 17 April for the first full year and subsequent years, setting out the net cost after recalculations required by the British rebate system, setting out the amounts in sterling, and proportions due net from the UK and the EC. [26758]

Mr. Waldegrave

Estimates for 1996–97 to 1998–99 are in the table:

Estimated cost of measures in the UK taken in response to BSE situation up to 17 April
£ million
1996–97 1997–98 1998–99
Net cost borne by the UK 750 600 570
Net contribution from the EU 260 140 110
Total cost 1,010 740 680

The table takes account of the following measures:

  1. (a) the compensation arrangements for cattle over 30 months of age which cannot now enter the food chain;
  2. (b) the new calf slaughter premium;
  3. (c) the package of aid for the renderers and the abattoir and cutting industries announced on 3 April and 16 April respectively;
  4. (d) additional running costs for the agriculture departments to enable more activity by the meat hygiene service.

The table does not make any allowance for the possible cost of intervention in the beef sector.

The figures for the net contribution from the EU take account of both the UK's contribution to additional EU spending and the effect of additional receipts on the UK abatement.