HC Deb 11 February 1999 vol 325 cc419-20W
Mr. David Taylor

To ask the Minister of Agriculture, Fisheries and Food what discussions he has had on the future of the calf processing aid scheme; and if he will make a statement. [71389]

Mr. Nick Brown

Farmers' organisations have pressed for continuation of the Scheme in view of the uncertain situation facing the beef market. When I announced on 16 November 1998,Official Report, columns 624–40, a package of aid for the livestock sector, I extended the life of the scheme until 31 March 1999. I undertook then to keep the scheme under review. I have now concluded with my colleagues that, in view of market circumstances, we should further extend the scheme to 31 July 1999.

In view of the need to give certainty about the final end-date of the scheme there will be no further extension. It will end on 31 July.

Mr. Paice

To ask the Minister of Agriculture, Fisheries and Food what is the monthly cost of the revised calf processing aid scheme and the proportion paid by(a) the Treasury and (b) the EU. [70634]

Mr. Rooker

At the current exchange rate, and assuming throughput at average 1998 levels, the monthly cost of the Calf Processing Aid Scheme is a little over £3 million. The Scheme is in principle 100 per cent. financed by the EU, but due to the operation of the Fontainebleau rebate mechanism the Exchequer effectively pays about 71 per cent. of the costs.