HC Deb 28 June 2001 vol 370 cc180-2W
Andy King

To ask the Secretary of State for Environment, Food and Rural Affairs what changes are proposed to the departmental expenditure limit for the Ministry of Agriculture, Fisheries and Food and the Intervention Board for 2001–02. [1799]

Mr. Morley

Despite the formation of the new Department for Environment. Food and Rural Affairs, Supplementary Estimates must still be made in the name of the former Ministry until such time as its functions can be transferred by ways of Transfer of Functions Orders. Any changes to the MAFF DEL necessary as a result of the Machinery of Government changes announced following the general election on 7 June will be effected later in the year when any necessary Transfer of Functions Orders or other administrative actions are in force.

Subject to parliamentary approval of the Supplementary Estimates the Ministry of Agriculture, Fisheries and Food and the Intervention Board's joint Departmental Expenditure Limit (DEL) will be increased by £547,638,000, from £1,185,144,000 to £1,732,782,000.

MAFF's Departmental Expenditure Limit (DEL) increases by £168,972,000, from £1,059,515,000 to £1,228,487,000 of which resources will increase by £145,182,000 and capital by £23,790,000. There will be a movement from the non-voted element of the DEL of £3,000,000 to the Voted Capital DEL.

For MAFF there is an increase in the administration costs limit of £35,386,000, from £369,799,000 to £405,185,000 and a claim on the DEL Reserve of £188,838,000. This latter comprises the take-up of £42,200,000 resources on administration costs, £69,100,000 resources on programme expenditure, and £7,500,000 capital expenditure for measures to eradicate foot and mouth disease; the take-up of £2,000,000 resources on programme expenditure, and £15,000,000 capital expenditure for flood defence works—being part of the £51 million Flood Defence package announced on 23 November 2000—and £6,600,000 resources on programme expenditure, being part of the £11,6 million package announced on 27 January 2001; the take up of £15,000,000 additional resources on programme expenditure for the payment of legal costs relating to an European Court of Justice judgment against the UK (Factortame); the take-up of £1,538,000 additional resources on administration costs from the Modernisation Fund in respect of successful projects; the take-up of £14,600,000 resources on programme expenditure in respect of the Agrimonetary Compensation scheme for Livestock Payments announced on 6 March 2001; and the take-up of £640,000 resources on administration costs, £13,810,000 resources on programme expenditure and £850,000 capital expenditure for testing of fallen stock, as an additional BSE control measure.

In addition MAFF is transferring £7,308,000 of non-voted DUP (Departmental Unallocated Provision) to the Food Standards Agency for a small abattoirs scheme. This does not appear in the Estimate.

For the Intervention Board there is an increase in the administration costs limit of £17,181,000, from £35,031,000 to £52,212,000 and a claim on the DEL Reserve of £366,230,000. This latter comprises £300,000,000 for the Livestock Welfare (Disposal) Scheme (£293,500,000 programme costs and £6,500,000 administration costs) related to foot and mouth disease; the take-up of £39,500,000 for Dairy Agrimonetary Compensation and (£26,730,000 to fund BSE testing of fallen stock (£24,485,000 programme costs and £2,245,000 administration costs).

The above increases will be offset by savings or charged to the DEL Reserve and will not therefore add to planned total of public expenditure.