§ Mr. Martyn JonesTo ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the European Commission's proposals to(a) reduce the UK national ceiling for beef special premium claims and (b) reduce the stocking density limits. [1592]
§ Mr. MorleyThe overall effect of the proposal to reduce the EU national BSP ceilings is to reduce the potential for expansion of production. Based on recent usage figures it does not imply an immediate significant reduction in production. As the UK has historically used the majority of its available ceiling we have not had to bear the more severe cuts imposed on some other member states, and suffer only a 4 per cent. cut in ceiling. Forecasts have predicted that production in 2002–03 will be almost the same level as that of 1997. This would mean that the UK would have a total number of claims below its revised ceiling and producers would not be subjected to clawback on their beef special premium claims.
The overall effect of lowering of the stocking density limits on beef special premium and suckler cow premium claims, from 2.0 livestock units per hectare (LU/ha) to 1.9 LU/ha in 2002, is difficult to assess since the reduced limits will have different effects at the level of individual producers. In some cases it is possible that farmers might have to reduce claims in order to meet the stocking density limits. However, all assessments will be clouded by the restocking position of farmers who have been affected by foot and mouth disease controls.