HC Deb 02 February 2004 vol 417 cc630-3W
Mr. Paterson

To ask the Secretary of State for Environment, Food and Rural Affairs how many prosecutions have been initiated and are pending, by or on behalf of her Department against(a) contractors and (b) farmers, in respect of alleged fraudulent claims or other irregularities relating to (i) claims made for compensation, (ii) works undertaken on behalf of her Department, and (iii) animals slaughtered; how many court hearings have been completed; and how many of the prosecutions have been successful. [150555]

Mr. Bradshaw

Since 2001, no prosecutions have been commenced in relation to fraudulent claims by contractors for compensation or works undertaken on behalf of the Department. Three prosecutions were commenced into fraudulent claims for compensation by farmers: one farmer pleaded guilty, two farmers were acquitted. There are no outstanding prosecutions.

Mr. Wiggin

To ask the Secretary of State for Environment, Food and Rural Affairs how many and what value of payments remain unpaid to Welsh contractors employed during and following the foot and mouth disease outbreak. [151727]

Mr. Bradshaw

I refer the hon. Member to the answer I gave to the hon. Member for Weston-Super-Mare (Brian Cotter), on 6 January,Official Report, column 261W.

The Department is in dispute with four Welsh contractors over charges arising, or which are claimed to have arisen, from the 2001 foot and mouth disease outbreak. As these matters are ongoing it would be inappropriate to comment further.

Mr. Wiggin

To ask the Secretary of State for Environment, Food and Rural Affairs how many and what value of compensation payments remain unpaid to Welsh farmers as a result of the foot and mouth disease outbreak, broken down by(a) constituency and (b) local authority area. [151728]

Mr. Bradshaw

There are no compensation payments due to Welsh farmers that remain unpaid as a result of the foot and mouth outbreak.

Mr. Wiggin

To ask the Secretary of State for Environment, Food and Rural Affairs how many compensation payments, of what value, have been paid to Welsh farmers as a result of the foot and mouth disease outbreak, broken down by(a) constituency and (b) local authority area. [151729]

Mr. Bradshaw

We cannot provide a breakdown of compensation payments by either constituency or local authority area. The compensation payments data is not held in that form.

However, we can provide the following breakdown of compensation payments made to Welsh farmers by county.

Payments
£
County Number Total Amount
Powys 991 41,470,929
Gwent 211 10,517,681
Mid Glamorgan 54 775,061
Clwyd 25 508,428
West Glamorgan 14 971,654
Dyfed 12 377,399
South Glamorgan 2 253,318
Totals 1,309 54,874,470

Mr. Bellingham

To ask the Secretary of State for Environment, Food and Rural Affairs what the criteria are for interest payments to be made by her Department on outstanding foot and mouth disease claims; and if she will make a statement. [151839]

Mr. Bradshaw

The criteria will vary on a case by case basis and will depend on such things as the precise contractual terms providing for interest; the construction of the contract; the terms and applicability of The Late Payment of Commercial Debts (Interest) Act 1998; and the validity and timeliness or otherwise of the applications for payment received.

Mr. Bellingham

To ask the Secretary of State for Environment, Food and Rural Affairs how many outstanding claims for foot and mouth disease clean-up contracts remain to be processed by her Department; and what estimate has been made of the total liability. [151840]

Mr. Bradshaw

As the Department has paid businesses on the basis of the contractual terms agreed it does not believe there are any valid unpaid and outstanding invoices submitted by businesses to the Department for work undertaken in connection with the foot and mouth outbreak in 2001.

The Department is withholding £52.9 million from businesses in connection with charges arising from the provision of goods, services and works during the outbreak. In these cases, it believes on the basis of the quantum, accounting, technical and legal advice it has received that it was overcharged for goods, services and works during the outbreak. In all other cases, the Department has paid businesses for the goods, services and works provided in connection with the outbreak in 2001.

As at 29 January 2004 the Department is in serious dispute with 22 contractors and five of these disputes are currently in the civil courts, with more expected to follow.

Mr. Bellingham

To ask the Secretary of State for Environment, Food and Rural Affairs how much money has been spent(a) internally and (b) on outside assistance on the disputing and forensic analysis of invoices submitted by Northumberland and Durham Machinery Ring Ltd for foot and mouth disease clean-up contracts. [151841]

Mr. Bradshaw

The Department has spent(a) £2,480 internally and (b) £336,357 excluding VAT externally on professional services in connection with the forensic examination of the Northumberland and Durham Machinery Ring account pertaining to the foot and mouth outbreak in 2001.

This expenditure excludes the costs of the successful mediation on 20 January, which are the subject of standard confidentiality provisions agreed between the parties.

Mr. Bellingham

To ask the Secretary of State for Environment, Food and Rural Affairs what arrangements have been made by her Department with organisations or persons rewarded by payment of commission, percentage or other means for securing reductions in invoices submitted by contractors for foot and mouth disease clean-up contracts. [151842]

Mr. Bradshaw

No such arrangements have been made.

Mr. Bellingham

To ask the Secretary of State for Environment, Food and Rural Affairs how many invoices submitted for foot and mouth disease clean-up contracts have been paid in full by her Department without negotiation or dispute as to quantum. [151843]

Mr. Bradshaw

I refer the hon. Member to the answer I gave to the hon. Member for Weston-Super-Mare (Brian Cotter) on 6 January 2004,Official Report, columns 260–62W. The information requested could be provided only at disproportionate cost, as it would require a review of all applications for payment submitted over four financial years in connection with the foot and mouth outbreak in 2001.

Mr. Bellingham

To ask the Secretary of State for Environment, Food and Rural Affairs how many of the claims made for foot and mouth disease clean-up contracts which have been settled by her Department have been settled within the allocated time period. [151844]

Mr. Bradshaw

I refer the hon. Member to the answer I gave to the hon. Member for Weston-Super-Mare (Brian Cotter) on 6 January 2004,Official Report, columns 260–62W.

Mr. Bellingham

To ask the Secretary of State for Environment, Food and Rural Affairs how many claims made for foot and mouth disease contracts submitted to her Department have been settled to date. [151845]

Mr. Bradshaw

I refer the hon. Member to the answers I gave to the hon. Member for Weston-Super-Mare (Brian Cotter) on 6 January 2004,Official Report, columns 260–62W.

Mr. Bellingham

To ask the Secretary of State for Environment, Food and Rural Affairs how many claims for foot and mouth disease clean-up contracts have yet to be settled by her Department. [151846]

Mr. Bradshaw

The Department is withholding £52.9 million from businesses in connection with charges arising from the provision of goods, services and works during the outbreak. In these cases, it believes on the basis of the quantum, accounting, technical and legal advice it has received that it was overcharged for goods, services and works during the outbreak. In all other cases, the Department has paid businesses for the goods, services and works provided in connection with the outbreak in 2001.

As at 29 January 2004 the Department is in serious dispute with 22 contractors and five of these disputes are currently in the civil courts, with more expected to follow.

Mr. Bellingham

To ask the Secretary of State for Environment, Food and Rural Affairs how many claims for foot and mouth disease clean-up contracts have been submitted to her Department since the outbreak of the disease. [151847]

Mr. Bradshaw

The Department considers it has received 30 claims for foot and mouth disease clean-up contracts since the foot and mouth outbreak in 2001.

Mr. Bellingham

To ask the Secretary of State for Environment, Food and Rural Affairs how much money has been spent(a) internally and (b) on outside assistance on the disputing and forensic analysis of invoices submitted by businesses for foot and mouth disease clean-up contracts. [151848]

Mr. Bradshaw

I refer the hon. Member to the answer I gave to the hon. Member for Weston-Super-Mare (Brian Cotter), on 6 January 2004,Official Report, column 259W.

Internal costs total £430,000 to date.

Mr. Bellingham

To ask the Secretary of State for Environment, Food and Rural Affairs how much interest has been paid by her Department on outstanding claims for foot and mouth disease contracts; what estimate has been made of likely outstanding payments; and if she will make a statement. [151849]

Mr. Bradshaw

I refer the hon. Member to the answer I gave to the hon. Member for Weston-Super-Mare (Brian Cotter), on 6 January 2004,Official Report, columns 259–60W.

Mr. Flook

To ask the Secretary of State for Environment, Food and Rural Affairs how many of the claims made for foot and mouth disease clean-up contracts which have been settled by her Department with(a) companies and (b) individuals based in Somerset were settled within the allocated time period. [152001]

Mr. Bradshaw

I refer the hon. Member to the answer I gave to the hon. Member for Weston-super-Mare (Brian Cotter), on 6 January 2004,Official Report, column 261W.

The Department is in dispute with one contractor in Somerset over charges arising, or which are claimed to have arisen, from the 2001 foot and mouth disease outbreak. As this matter is on-going, it would be inappropriate to comment further.

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