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Mr. Mike O'Brien (North Warwickshire): Farmers in my constituency have written to me today because they
have heard what the Minister has said, as have many consumers, and there is still a crisis of confidence in British beef. How does he respond to the advice from the farmers of north Warwickshire, who say that the National Farmers Union's proposal for certain slaughtering should be adopted?
Mr. Hogg: If the hon. Gentleman will forgive me,I will not respond, because I am about to tackle that issue and related ones.
It is clear that consumer confidence has been damaged and that has led to a collapse in the market.The difficulties have been aggravated by the European Union ban imposed on British exports of beef and beef products, which we believe to be unjustified on the facts, in logic and to have no sound basis in law.
Mr. Nigel Spearing (Newham, South)
rose--
Mr. Hogg:
If the hon. Gentleman will forgive me, I want to make a little progress.
As I have said, the collapse in confidence has caused great damage to the market. That clearly threatens the livelihoods of thousands of farmers and of others in related industries.
We need to convince the public of what most informed people believe and what is stated by SEAC: that, provided the relevant controls are rigorously adhered to, the risk of eating British beef is extremely small: or, in other words, it is safe.
I am determined to ensure that the existing specified bovine offal controls are implemented in full. Right hon. and hon. Members will know that, regrettably, lapses have occurred in the past. I have told the House on several occasions how seriously I take those lapses. That is why I called in the slaughterhouse operators on more than one occasion last year, and my hon. Friend the Parliamentary Secretary has done likewise.
Furthermore, as soon as we had SEAC's recommendations on 20 March, we issued instructions to the Meat Hygiene Service to ensure that the controls are implemented yet more rigorously. I am pleased to say that the audits show a vast improvement. SEAC has recently said that, in its view, implementation is now satisfactory, but we shall certainly remain vigilant.
Now that we have received the two reports from SEAC, we must proceed as speedily as we can to implement its recommendations. This will involve the laying of orders, some of which must be the subject of consultation. Indeed, it is right that there should be consultation; we are talking about important issues of public health so the details must be right. We are also talking about the livelihoods of people engaged in the relevant industries.
I am pursuing the following timetable. Orders are being laid today that will have the effect of banning, with effect from tomorrow, the manufacture of feeding stuffs for farm animals using mammalian meat and bonemeal, and extending SBO controls to cover heads and lymph glands. As a temporary measure, I am also banning the sale of meat from newly slaughtered cattle aged over 30 months. This measure will apply until we have in place a procedure for licensing and supervising deboning plans, as recommended by SEAC. I am under a legal obligation to consult on the order introducing those procedures and
on a proposed ban on the use of bonemeal in agricultural fertilisers. Despite that statutory obligation to consult,I am proceeding rapidly. The consultation document has been issued, and I intend to make the relevant legislation in the week beginning 15 April.
The steps that I have set out are recommended by SEAC. It is important to see how we can further reinforce market confidence and what steps we can take to achieve the lifting of the ban imposed by the European Union.
Mr. Spearing:
Will the Minister enlighten the House--if he knows--about which article of the treaty the veterinary committee, the Commission or any Council official is claiming validates the ban on exports to third countries that have not banned those imports?
Mr. Hogg:
The decision of the Commission referred to at least four directives, but it would not be helpful if I were just to read out the directives.
Mr. Patrick Nicholls (Teignbridge):
My right hon. and learned Friend will appreciate that consumers can simply walk away from consuming beef if they want to, but for beef farmers the devastation may be total. Will he assure the rural community that, if and when compensation is settled, consideration will be given to the people whose lives, for the most part, have been ruined in a way from which they will probably never be able to recover?
Mr. Hogg:
My hon. Friend correctly states the gravity of the situation, and I do not wish to leave the House under any misapprehension. The Government are fully aware of the gravity of the situation facing the agriculture industry, and we will do all that we properly can to address that crisis. I will make comment specifically on what we can do now, and I will add some general observations on what we may do subsequently.
Mr. Dafydd Wigley (Caernarfon):
If I understood the Minister correctly, he said a moment ago that no animal over 30 months old would be killed and put into the food chain. If so, what mechanism is he proposing for farmers who would normally sell those animals to ensure that they retain some of their expected income? Will there be intervention buying? If so, how do the Government propose to dispose of the animals? Does he foresee that happening quickly?
Mr. Hogg:
The order to which I have referred has the effect of preventing cattle over the age of 30 months from entering the food chain, but the hon. Gentleman should remember SEAC's recommendation that animals over that age could come into the food chain provided they did so in a deboned state, the deboning taking place in premises approved for that purpose. The order, which has the prohibitory effect referred to by the hon. Gentleman, is temporary in character and will cover the situation until such time as we can put in place the licensing regime that will enable farmers to sell cattle over the age of30 months, the meat being in a deboned state. But the meat must be deboned in approved premises, and we are consulting on that.
Sir Michael Spicer (South Worcestershire):
Will my right hon. and learned Friend give way?
Mr. Charles Hendry (High Peak)
: Will my righthon. and learned Friend give way?
Mr. Hogg:
I shall give way to my hon. Friend the Member for South Worcestershire (Sir M. Spicer) first.
Sir Michael Spicer:
I am not certain from my right hon. and learned Friend's comments whether the Government believe that the Commission's ban on exports to third countries is or is not illegal. If it is illegal, will the Government make representations at the highest possible levels in Turin this weekend?
Mr. Hogg:
I have said that I think that the ban, and the directives on which it was based, has a questionable basis in law, and there are serious arguments to be addressed on its legal aspects. But the truth is that it takes time to get an adjudication on such a matter, and time is what we do not have. My right hon. Friend the Prime Minister will certainly raise the matter in Turin in the most vigorous terms, and I am going to Brussels tomorrow--my officials are there today--to see whether we can agree some measures that may help to restore consumer and market confidence.
Mr. Hendry:
May I refer my right hon. and learned Friend back to the temporary ban on the slaughter of animals aged over 30 months? Is he aware that this is the most expensive time of year for many farmers--the rent is due and they must pay for the next quarter's feedstuffs, among other things? Farmers have no choice but to send their cattle for slaughter at this time of year. What comfort can he give farmers who have to sell at this time of year, but now find that they cannot do so?
Mr. Hogg:
My hon. Friend makes an important point, and I have tried to convey the gravity that the Government attach to the market and financial security of the agricultural community. I have a number of things to say about supporting the agricultural community, but I feel that the best thing would be to make some progress. What I say may help my hon. Friend--I certainly would like to think that it will.
I have explained the steps that I have put in place to implement SEAC's recommendations, and I said that I hoped to make the relevant legislation in the week beginning 15 April. The steps that I have taken are those recommended by SEAC, but clearly we must explore what more we can do to reinforce market confidence and what steps we can take to achieve the lifting of the ban imposed by the EU.
To restore consumer confidence and to obtain a lifting of the European ban, we may have to take steps that go beyond those that are strictly necessary on scientific grounds. Officials from my Department are in Brussels today to discuss with Commission officials our thoughts on how best to reassure the market and lift the European Union ban. I will go to Brussels tomorrow to meet Commissioner Fischler, and we shall prepare the ground for the emergency Agriculture Council that has been called for next Monday.
We will also discuss with the industry how best we can collectively restore the confidence of the British consumer. As I have already said, that may involve taking measures beyond those required by the scientific evidence.
Of course, to re-establish consumer confidence is also to re-establish the market, but there is an immediate problem to be tackled. To address the most immediate issues, I have two announcements to make today.
The first concerns the problem of the renderers, which is important because, if renderers cannot operate, the slaughterhouse system will seize up and it will be impossible for farmers to sell their beef. Therefore, the Government will make available transitional aid of around £1.5 million per week to help the rendering industry adjust to the changes.
Although, in the longer term, ruminant protein will not be incorporated in feed rations for farm animals, I am confident that a new and different commercial relationship will be established between renderers, slaughterhouses and farmers. What I am announcing is essentially temporary assistance.
The second announcement relates to the immediate problem of the young bull calves, for which there is not a market at present. I told the House on 25 March that a European Union market support scheme existed, which could be used to provide aid for the slaughter of young male calves from dairy herds.
I am announcing today that we shall avail ourselves of that scheme, providing a premium of slightly more than £100 per head on all such calves slaughtered before reaching 10 days of age. That will be reviewed as the market position improves. I estimate that it will be worth some £50 million year to UK farmers. Pending parliamentary approval, which will be sought in a supplementary estimate, the necessary expenditure will be met by repayable advances from the contingency fund.
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