Multi-million ecu bill for BSE

Date: 04/04/1996

By Michael Mann

AFTER two days of protracted negotiations, UK farm minister Douglas Hogg managed to persuade his EU counterparts to foot 70&percent; of the compensation bill for farmers forced to cull cattle in a new BSE eradication scheme.

But, not surprisingly, he was unable to convince them to set a definite timetable for ending the worldwide ban on UK beef exports.

After the meeting, Hogg expressed “regret” that it had not been possible to meet the UK's “legitimate requirement that this ban should be lifted”, claiming it was “not justified”. He added: “It is not based on sound scientific analysis. It is disproportionate.”

But although Hogg refused officially to endorse the measures, Commission officials dismissed his protests as “cosmetic”. Agriculture Commissioner Franz Fischler called on the UK to reciprocate the solidarity the Union had shown “through the expeditious implementation and effective control and verification” of the anti-BSE campaign.

At the end of a marathon negotiating session, farm ministers agreed all animals older than 30 months would be bought, destroyed and incinerated.

Farmers will receive an average of 560 ecu per animal, with 392 ecu coming from the Union. All other expenses, including incineration costs and aid to the rendering industry, will have to be met by the UK government.

Market experts from the member states, meeting in parallel with ministers, agreed temporary changes to beef intervention rules to allow 50,000 tonnes to be bought into EU storage during April.

Germany and Belgium voted against the measure, with the Germans arguing that the tender system would favour British producers and demanding clear assurances on what would be done with the UK beef taken into storage.

The cost to the EU budget of disposing of some 15,000 cattle per week is likely to total 320 million ecu a year for the next five or six years. The cost will rise considerably once London has drawn up a plan for slaughtering herds “identified as being most likely to have been exposed to infected meat and meal”, which it must do by the end of April.

Other member states which decide to destroy calves imported from the UK to help restore consumer confidence will receive similar levels of EU support.

Costs of this magnitude will undermine Commission President Jacques Santer's plan to divert unspent money from the EU farm budget to infrastructure and research projects. They may also embarrass the British, who stand to lose some of their much-heralded budget rebate if they call upon increased funding under the Common Agricultural Policy.

Hogg's insistence on a firm undertaking that the ban would be lifted was never likely to find favour with other member states, who merely committed themselves to review the situation within six weeks, once London has put selective cull measures in place.

Most - especially the French, Germans, Dutch and Austrians - were surprised that Hogg arrived at the meeting with no selective slaughter plan prepared, and stressed that it was crucial to come up with credible criteria for deciding which herds were at risk.

Lengthy discussions can be expected at the next scheduled meeting of farm ministers on 29/30 April in Luxembourg.

A number of additional measures were agreed to tighten controls still further. “Specified bovine offals” from UK cattle under 30 months will be removed from the food chain, animal remains will be banned from livestock feed, tighter conditions will be introduced for processing animal waste and the Commission will set up a team of inspectors to monitor the situation in the UK.

Responding to complaints from the food industry, veterinary experts will also investigate whether it was justified to include products such as those containing gelatine in the export ban.