§ Lord Inglewoodasked Her Majesty's Government:
Whether they have plans to increase the sheep annual premium which was devalued for 2001 by I he impact of foot and mouth disease on the United Kingdom export trade which consequentially lifted prices on the Continent. [HL2522]
§ Lord WhittyThere is no provision in the European Union sheepmeat regime that permits member states to increase the rate of the sheep annual premium. The final rate of the premium for 2001 has now been determined by the European Commission, and we have no plans to seek to change this.
§ Lord Inglewoodasked Her Majesty's Government:
Whether they have plans to bring the real returns of United Kingdom farmers up to equivalent levels enjoyed by sheep farmers elsewhere in the European Union. [HL2523]
66WA
§ Lord WhittyReturns to UK sheep farmers in 2001 were affected by a number of factors, including the effects of foot and mouth disease and the strength of sterling, while returns to sheep farmers elsewhere in the European Union benefited from high market prices. We expect returns to farmers in the UK to recover in 2002 with the reopening of export markets and the introduction of the fixed rate sheep annual premium, which is set significantly above the final rate of the premium for 2001.