HC Deb 15 January 1996 vol 269 cc460-1W
Mr. David Shaw

To ask the Minister of Agriculture, Fisheries and Food what plans he has to re-assess producers' entitlement to developers' quota from the 1993 sheep annual premium and suckler cow premium quota national reserves following the judgment of Mr. Justice Macpherson in the English. High Court on 22 June 1995; and what provision he is making to compensate producers adversely affected by his Department's actions. [9708]

Mr. Douglas Hogg

We have today laid before Parliament the Sheep Annual Premium and Suckler Cow Premium Quota (Re-assessment of Eligibility) Regulations 1996. These regulations put in place arrangements for the re-assessment, in England, Wales, Scotland and Northern Ireland, of applications for "developers" quota from a special reserve using new guidelines governing eligibility. The farming and landowning organisations have been fully consulted on the purpose and content of the regulations.

Where these arrangements adversely affect producers they will be entitled to compensation. The general principles forming the basis of compensation as currently envisaged are as follows: 1. Producers whose applications for 'developers' quota are newly assessed as eligible will be entitled to:

either if they acquired quota by transfer or lease for any or all of the scheme years 1993 to 1996 for SAPS and 1993 to 1995 for SCPS reimbursement of the cost of acquiring that quota up to a maximum of the amount of quota that they should have received under category 3c;

Or if they did not acquire quota by transfer or lease for all or any of the scheme years 1993 to 1995 and can demonstrate that the eligible animals that would have been covered by that quota were retained on the holding during the relevant retention periods, reimbursement of the value of the premium they would have received on the eligible animals during 1993 to 1995 up to a maximum of the amount of quota that they should have received under category 3c;

and where appropriate, an award of quota in accordance with the Regulations. 2. Those individuals (or their personal representatives) who are unable to apply for quota from the special reserve but who would have been entitled to receive "developers" quota from the 1993 national reserve had the new eligibility guidelines been used originally: will be entitled to compensation equivalent to that in paragraph 1. 3. Where producers who have quota withdrawn from them to meet the new demand for "developers" quota: they will be entitled to a compensation payment with which they can, if they wish, purchase quota through the open market to replace that withdrawn, and their entitlement to 1996 SAPS payments in respect of any withdrawn quota will be honoured provided that the producers concerned meet the Scheme rules 4. Other producers Where producers consider that compensation not provided for in paragraphs 1 to 3 above is due to them as a result of the re-assessment exercise, they will be able to submit details of their case for consideration by the appropriate Agriculture Department. 5. Practical arrangements In most cases it will be possible only to determine those who may be eligible for compensation and the amounts due once all applications have been assessed, the final demand for quota has been established and quota has been allocated. This will not be before the summer of 1996. The aim is to draw up standard terms for compensation—which will be agreed with farming and landowning organisations—which will simplify the process for claiming compensation for most farmers.