§ Paul FlynnTo ask the Secretary of State for Environment, Food and Rural Affairs what percentage of compensation payments made in the foot and mouth epidemic are estimated to have been in excess of the market value of the animals destroyed; and what steps the Department is taking to recover excessive payments. [79407]
§ Mr. MorleyCompensation values for animals destroyed in the foot and mouth epidemic were set in accordance with the Animal Health Act 1981 and reflected the market value i.e. the amount the animal destroyed would have fetched at market had it been sold at the time it was slaughtered.
Valuations were made by a large number of independent professional valuers operating as MAFF/Defra's appointed experts working on site, with the animals in view and with the herd history, recent herd transactions and historical knowledge of market price obtainable for the breed and category of the animal being valued in the relevant geographical area.
150 valuations, about 1 per cent. of the number of valuations, were challenged where it was thought the valuations were excessive. The Department sought further evidence from the valuers on these valuations. This evidence was then scrutinised by the Department's professional adviser before payment was made.
As a result of the scrutiny four valuations were considered excessive. Two were reduced and two others are currently in the Department's Arbitration Unit still to be resolved.