§ Mr. SayeedTo ask the Secretary of State for Environment, Food and Rural Affairs how many rural businesses have closed since 3 May. [7752]
§ Alun MichaelThere is no measure of the number of rural businesses which have "closed" in any given period but 54 businesses in which a bankruptcy or compulsory winding-up order was made between 12 April and 31 August have stated that foot and mouth disease was a cause of the insolvency.
In September we commissioned survey work to shed light on the economic impact of foot and mouth disease in selected rural areas. Around 40 per cent. of businesses in areas with widespread outbreaks of foot and mouth disease report being adversely affected, compared with 15 per cent. in areas with few or no outbreaks. Among affected businesses, 44 per cent. describe the impact as severe or very severe, with 21 per cent. reporting the loss of over half normal sales revenue between March and August. While most affected businesses report that they remain profitable, 13 per cent. report that an expected profit has turned to loss due to foot and mouth disease. However, two-thirds expect to be back to "business as usual" by mid-2002. We will publish the final report when it is complete later.