Select Committee on European Legislation Third Report
IDENTIFICATION OF CATTLE AND LABELLING OF BEEF AND BEEF PRODUCTS |
Compliance Cost Assessment
Double tagging of cattle
GB central database on cattle movements
Labelling of beef and beef products
Conclusion
[21]TOTAL COMPLIANCE COSTS FOR GB BUSINESS Total Costs to the Industry
TOTAL COMPLIANCE COSTS FOR NI BUSINESS (Assumptions and Calculations) Passports There are approximately 36,000 registered cattle keepers in Northern Ireland and an estimated 1.5 million cattle. The average herd size is taken to be 41. The proposal is ambiguous. Article 6 would suggest that passports would only be introduced for animals born from a future date. However, the proposal could be interpreted as meaning that passports would have to be issued for all animals. This CCA therefore assumes that farmers would need to apply for a passport for all cattle in the national herd at a given date, and thereafter for an estimated number of .5 million births a year. (Passports would also be required for cattle imported from non Member State countries. These costs are not included since the totals are negligible: some 80 animals p.a.) The compliance cost for NI farmers is assumed to be: Cost of reading notes and completing forms:
The assumed average hourly rate for farmers is £5
TOTAL COMPLIANCE COSTS FOR NI BUSINESS
SMALL BUSINESS LITMUS TEST Three independent butchers were consulted in assessing the estimated cost of compliance. One in a town, one in a rural area and one in a semi rural area. Assumptions used There are estimated to be around 9,000 local butchers. On average each local butcher handles around 30 beef and beef products giving a total of 270,000 labels/information at point of sale. However each butcher could have any one scheme approved to cover all products/labels. Up to one third of the schemes would need to be re-approved each year.
TOTAL COMPLIANCE COSTS (Assumptions and Calculations) There are roughly 10 supermarkets that already have their own assurance labels (at the most 3) and staff that already deal with the administration of these schemes. A further 10 that would require approval for new schemes (one each) once the legislation came into effect. Although supermarkets sell up to 30 beef products the vast majority would fall within the (3) assurance schemes that receive approval. Although supermarkets sell up to 300 manufactured beef products these are unlikely to require detailed labelling. On top of these there are an estimated 10 wholesalers and cash and carry outlets that would require approved schemes (one per operator). There are about 5 specialist schemes (e.g. Aberdeen Angus) that would need to seek approval. In the first year of operation the non recurring costs and the recurring costs would apply to each scheme.
16. (17535) 10495/96; see HC 36-i (1996-97), paragraph 5 (30 October 1996).
17. Cattle Passports Order 1996 (S.I., 1996, No. 1686).
18. That is, putting on to the database movement details for the cattle to which
passports had been issued before the traceability database was set up.
19. The total saving estimated was £15 million.
20. A copy has been placed in the Library.
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© Parliamentary copyright 1996 | Prepared 2nd December 1996 |