HC Deb 09 May 2000 vol 349 c374W
Mr. McGrady

To ask the Secretary of State for Northern Ireland when agrimonetary compensation will be made available for the arable, beef and sheep sectors in(a) 2000 and (b) 2002; and if he will make a statement. [120755]

Mr. Ingram

In terms of optional agrimonetary compensation, payments to the sheep sector will be made with the first advance on ewe premium in July 2000.

The bulk of payments to the beef sector, i.e. beef special premium and suckler cow premium, will be made from October 2000.

In terms of compulsory agrimonetary compensation, the second instalment of compensation to beef and arable producers will be paid from October 2000 with the third instalment a year later. The third instalment for sheep is likely to be paid in April 2001.

No payments are presently planned for 2002.

Mr. McGrady

To ask the Secretary of State for Northern Ireland for what reason the Government did not provide the agrimonetary compensation available in 2000 to the(a) beef, (b) sheep and (c) arable sectors; and if he will make a statement. [120756]

Mr. Ingram

Compulsory agrimonetary compensation totalling up to £88 million will be payable in 2000 to the UK arable, beef and sheep sectors. The Prime Minister's announcement of 30 March 2000 made available further optional compensation totalling £66 million to the beef, sheep and dairy sectors. This balanced the difficulties faced by the agricultural industry with the impact on the UK Exchequer. Drawing down agrimonetary compensation (which must be paid on a UK-wide basis) has considerable public expenditure implications: once the Fontainbleau rebate is taken into account, the cost of the 30 March agrimonetary package to the UK Exchequer is approximately £50 million. Expenditure of the magnitude involved must be judged carefully against the many competing demands on the public purse.

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