HC Deb 25 February 1997 vol 291 c195W
Mr. Llew Smith

To ask the Minister of Agriculture, Fisheries and Food what arrangements exist compensating renderers for the non-recovery of meat and bonemeal products. [17041]

Mr. Baldry

The Government are providing temporary financial assistance to the rendering industry as part of our package of measures designed to maintain essential links in the meat supply and disposal chain in the aftermath of the BSE crisis.

During 1996–97, rendering companies are receiving support estimated to total about £100 million. This is based on loss of income by comparison with 1995–96, with adjustments to take broad account of renderers' actual levels of throughput and costs this year.

We are currently consulting on proposals for delivering support, amounting to up to £59 million, during 1997–98. The disposal chain now has to come to terms with the changed value of animal by-products. At the same time we want to inject greater competition and market choice into the chain. We therefore intend that support should be phased out during 1997–98. Copies of our consultation papers are available in the Library.