HC Deb 29 July 1998 vol 317 c340W
Mrs. Dean

To ask the Minister of Agriculture, Fisheries and Food what action he will take when the operation in the United Kingdom of the calf processing aid scheme becomes voluntary on 30 November. [54381]

Mr. Nick Brown

1.2 million calves have been processed under the Scheme since April 1998. The UK has thus made the most significant contribution to reducing beef output in Europe. The obligation to operate this Scheme or the Early Marketing Scheme for Veal Calves expires on 30 November 1998 and it seems unlikely that many Member States will opt to slaughter young calves, that scheme alone being available thereafter on a voluntary basis.

Throughout its life in the UK, the Calf Processing Aid Scheme has been criticised from a number of quarters. It has also inflated the cost of calves for beef production to the detriment of beef finishers.

After widespread consultation with industry interests, my colleagues and I have decided that it would be inappropriate to maintain this Scheme in the UK. Its continuation would distort calf prices in the short term and artificially constrain the production of home-reared beef in the medium term. It must be borne in mind that we will continue to make a very significant contribution to balancing the European beef market by operating the Over Thirty Months Scheme for cattle, at very considerable expense to the UK Exchequer.

The Government have therefore decided that the Scheme will close on 30 November 1998.

Mr. Paice

To ask the Minister of Agriculture, Fisheries and Food, pursuant to the oral statement by the hon. Member for Birmingham, Perry Barr (Mr. Rooker) of 14 July 1998,Official Report, column 262, on what information he based his statement that the decision to close the Calf Processing Aid Scheme on 30 November 1998 was taken before the General Election. [53001]

Mr. Rooker

[holding answer 28 July 1998]: The EU Agriculture Council meeting on 28–30 October 1996 decided to introduce compulsory measures to reduce the potential surplus of beef. Member States were accordingly required to operate either the Calf Processing Aid Scheme or the Early Marketing Scheme for Veal. It was decided that both Schemes should operate for a period of two years only, i.e. from 1 December 1996 until 30 November 1998. The UK representative voted in favour of this decision in the Council.