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Mr. Baldry: I have received representations from those, such as vets, who argue that we should restrict abattoirs to a very small number--perhaps 20 or so--which could then be tied to individual renderers. About 200 abattoirs across the country--many of which had been in mothballs for some time--applied to join the scheme. I am seeking to ensure the maximum throughput under the scheme, having regard to the rendering capacity we have. I believe that we have achieved that, but if it transpires that we can take on further slaughter capacity, of course we shall seek to do so. I am keen that we should clear the backlog and get the maximum amount of beef processed through the scheme, not least because I want to ensure that farmers receive their compensation cheques as speedily as possible.

Mr. Tony Banks (Newham, North-West): The Minister mentioned animal welfare, which concerns me. Will he take us through the process from farm to furnace that the poor dumb creatures will have to undergo? Will he cut out the euphemisms so that we know exactly what it means? As it is pretty obvious from the past that the owners and controllers of slaughterhouses do not abide by the rules, and as the animals are not bound to the food chain, what checks will he make to ensure the highest possible standard of animal welfare? Will his vets be present and will he allow animal welfare organisations to monitor the process?

Mr. Baldry: The Meat Hygiene Service and the Government veterinary service are present throughout the slaughtering process. It goes without saying that we always want to ensure the best possible animal welfare throughout the transactions. We have to bear that in mind when we are considering how fast the 30-month scheme can work. There is no dissembling on that and, as I have made clear today to the livestock marts and the abattoirs, if at any stage there is any suggestion that livestock markets or abattoirs are failing to comply with all the regulations, they will be suspended from the scheme.

The scheme should work properly and effectively in respect of animal welfare, consumer confidence and ensuring that the rules are complied with in terms of public finance. I do not want to open a Sunday newspaper in a couple of months' time to find allegations of animal abuse or financial abuse. The scintilla of a suggestion that anyone is abusing the scheme will lead to suspension.

Mr. John Whittingdale (Colchester, South and Maldon): Will my hon. Friend give further consideration to the plight of those who were previously involved in head-boning, whose business has been wiped out overnight? Can the scheme provide any help to that part of the industry?

Mr. Baldry: My hon. Friend makes an extremely good point. It is not and never has been possible to give

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compensation to everyone who has suffered financially, either directly or indirectly, as a consequence of the announcement by the Spongiform Encephalopathy Advisory Committee. The money that we have paid and are paying to abattoirs, renderers and others has been by way of market support. There is no longer a market to support in head-boning and for that reason that industry has not received and will not receive a penny in compensation. That has been made clear. I hope that others involved in the process, who sometimes feel that they may not be receiving as much money as they would like, will have regard to the fact that many elsewhere in the industry have suffered more dramatically.

Mr. Alan W. Williams (Carmarthen): Will the Minister clarify what happens to the cattle after slaughter and explain how the carcases are disposed of? He talks about rendering and incineration, but what does he mean by rendering? We all thought that, once the cattle had been slaughtered, they would then be incinerated.

Mr. Baldry: If any hon. Members do not understand the rendering process and genuinely seek a further understanding of it, of course I shall arrange for them to be given a further detailed briefing and perhaps the opportunity to visit a slaughterhouse. It is important there is a full understanding. Once the animals are rendered, they have to be disposed of and, given the scale of the exercise, we are examining means of ensuring that the carcases are disposed of in an environmentally proper and efficient way. That may well require a number of solutions that we are examining in conjunction with the Environment Agency, the Department of the Environment and others. Hon. Members can rest assured that any disposal will be to the best and highest environmental standards.

Sir Teddy Taylor (Southend, East): Can the Minister estimate the cost to public funds of the scheme, which is based on 120,000 cattle, and of the attached abolition of the Meat and Livestock Commission levy? Once those 120,000 slaughters have been completed, will that mean the possible elimination of BSE?

Mr. Baldry: My hon. Friend can do the calculation himself. I circulated to my hon. Friend and to every other right hon. and hon. Member on Friday the details of the exact compensation being paid. We have not set a fixed time limit for the scheme, which will operate as long as necessary to continue to restore confidence in UK beef. The scheme will certainly have to operate for some considerable time. Market adjustments will be made as the scheme is introduced--not least because many farmers who may have run their clean beef on to more than 30 months will now rear and sell their beef in less than 30 months. Clearly there will now be a premium price for beef of below 30 months.

Mr. Gordon Prentice (Pendle): The Minister mentioned compensation to farmers. Will the Government compensate slaughterhouses for additional lairage costs, the expense of tending animals overnight and extra slaughtering costs?

Mr. Baldry: I am not sure which details the hon. Gentleman has read. Abattoirs will receive funds for

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acting as a collection centre and a payment for each animal that they slaughter, which we will negotiate. Slaughterhouses will receive a perfectly fair payment for the work they do, and the throughput of cull cows will be little different from that previous to the scheme's operation. The only change will be that, instead of slaughtered animals going into the human food chain, they will be disposed of otherwise.

I see no reason for slaughterhouses involved in the scheme to be concerned about the payments made to them. I have received no specific representations from any slaughterhouse that the payments are unfair. Abattoirs recognise that the funds that they are receiving from the public purse are perfectly fair.

Sir Donald Thompson (Calder Valley): Does my hon. Friend expect that the 30-month rule will be inviolate? Surely the period will be ratched up to 31, 32 and33 months, as scientific knowledge moves on.

Mr. Baldry: The 30-month rule was chosen because SEAC thought that the time limit was important, which was why the National Farmers Union, the Food and Drink Federation, the British Retail Consortium and others unanimously recommended to the Government that the 30-month cull scheme would make a substantial contribution to restoring consumer confidence in UK beef here and overseas--and we have implemented one.

Mrs. Ray Michie (Argyll and Bute): The National Farmers Union of Scotland sent me a list of live weight collection centres serving remote locations in Scotland, but it does not include the island of Islay or Campbeltown in my constituency. Will the Minister give serious consideration to including those remote places?

Mr. Baldry: As I made clear to the livestock marts this morning, I do not pretend to have perfect wisdom or to offer perfect coverage. If any right hon. or hon. Member feels that there are particular geographical reasons for including another livestock mart, of course I will consider them. Marts must be able to find adequate and proper slaughtering capacity. I am loth to increase substantially the number of livestock marts because the greater the number involved, the bigger is the danger that the scheme will become complicated in respect of the number of abattoirs. It seems to me, as a general rule, that if a livestock mart was not processing 40 cull cows a week before the scheme's general introduction, it was not a serious player.

Sir Michael Spicer (South Worcestershire): Why will the European Union's financial contribution to the scheme be set against the general rebate that we receive from the European Union when the two issues are completely separate?

Mr. Baldry: My hon. Friend knows that the rules on European finance apply to this scheme and to every other scheme under which the United Kingdom is a beneficiary of the European Community budget. This scheme is no different from any other under which we receive money from the European Union.

Mr. Nick Ainger (Pembroke): Does the Minister accept that his statement leaves in limbo those farmers

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who produce slower maturing cattle? Can the Minister clearly say today that, in principle, those slower maturing breeds will get an extension beyond 30 months and that the consultation is merely about practicalities, not about principle? We do not know how long the consultation period will be, and perhaps the Minister can tell us. Otherwise, those farmers will not know whether to put their beasts into the scheme now or to wait for the final announcement.


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