Select Committee on Agriculture Minutes of Evidence



Examination of witnesses (Questions 340 - 359)

MONDAY 14 FEBRUARY 2000

RT HON MICHAEL MEACHER and MR STEPHEN TIMMS

  340. Could I ask, on a slightly different but related tack, about the evolution of these public registers which we have already got in place but which are obviously going to be beefed up somewhat? I am intrigued to read that you can only exclude mentions on that register on the grounds of national security or commercial confidentiality. What do we mean by "national security" there? There is some nervousness in the industry about possible animal welfare or, more particularly, animal rights action against certain holdings. I wondered what this national security issue is. Is that already in the statute?
  (Mr Meacher) The answer to that is that I do not know. I am very surprised. I must say, I cannot immediately see how national security would be involved here, but again I will get that looked into and write a letter to you.

  Mr Drew: Thank you.

Mr Mitchell

  341. The Chairman should not fuel all obsessions, but is it correct, as was suggested to me by a couple of correspondents, that the size limits were introduced at that level because most French family farms fell below them, whereas most units of production for poultry, for instance, in this country are above them—that is to say, they are 40,000 birds, for example?
  (Mr Meacher) I cannot possibly comment on that. It is true that the Meat and Livestock Commission estimates that the coverage in the case of the UK pig and poultry industry is substantially higher—something like 58 per cent—whereas the EU average is about 38 per cent. I think that reflects the fact that holdings in the UK, which may involve a number of installations, are generally on a much larger scale.

  342. Thank you for that little crumb to feed Euro-scepticism.
  (Mr Meacher) You never miss a chance, Mr Chairman.

  343. No, I shall not. It was the French who insisted on putting this in. There is one further question which I put to the Environment Agency and which they could not answer because it is a policy issue. Why bring this in for poultry farms at 2003 when on 1 January 2003 the new Caged Bird Welfare Regulation comes in requiring them to reduce the numbers of birds by cage by one—in other words, there is going to be a steep drop in the size of many units of production and a real problem of adjustment and investment in new cages at the same time as the IPPC comes in? Why not put it back a year?
  (Mr Meacher) One can always find reasons for not applying regulations.

  344. But you are applying them at a time of maximum chaos.
  (Mr Meacher) Again, I have not myself considered that. I think it is basically a matter for MAFF but again I will look into that and again we will give you a view on that. I am not sure that it would have the major effect which you seem to be suggesting and I would have thought there could be arguments for trying to introduce these regulations at the same time rather than one after the other. But we will look into that.

  Mr Mitchell: Thank you.

Mr Marsden

  345. To follow that up, who decided to introduce the IPPC regulations for poultry farms in 2003 and pigs in 2004?
  (Mr Meacher) The Environment Agency.

  346. Funnily enough, when I asked them that question, they said the DETR and, when pressed, they said ultimately it was the minister.
  (Mr Meacher) I can certainly say that it never came across my desk that the order of application of IPPC to different sectors should be decided by ministers. It is possible that it went to MAFF, it certainly did not come to me. I am surprised. This is a technical question. I accept that the state of the pig and poultry industry, and in particular agriculture as a whole, is sufficiently serious that there are clear political implications in that.

  347. So would you be prepared to investigate the reasons for that? Perhaps the answer has arrived—a piece of paper has been passed to you.
  (Mr Meacher) I do not think that answers it! It merely says, "The order of phasing will be in DETR regulations", well we know that, of course it will be in the DETR regulations. The question was, who made that particular choice. I am saying it certainly did not come to this minister.

  348. So you are prepared to investigate with MAFF and with the Environment Agency to find out the reasons for that and find out the basis on which this has been derived?
  (Mr Meacher) Certainly.

  349. My colleagues on the Committee have eaten away at most of my line of questions on IPPC charges but let me see if I can gather together and clarify some of these questions. Based on the fact that the Scottish Environmental Protection Agency have proposed charges which are about half those from the Environment Agency governing the England and Wales IPPC, how can charges for the same inspection process be so different?
  (Mr Meacher) I did try to answer this earlier. There are two elements in the charges. One is the application charge and the other is the annual subsistence charge. In the case of the Scottish Environment Protection Agency, the application fee is substantially higher but—

Mr Todd

  350. Higher than what?
  (Mr Meacher) Higher than the UK application fee.

Mr Curry

  351. England.
  (Mr Meacher) But the subsistence charge, or the annual charge, is lower. So I do not think one can directly make those comparisons.

Mr Marsden

  352. We have been told that the Scottish Environment Protection Agency are proposing a charge of a minimum of £7,894 for initial registration and the annual charge is £2,674, ie still half of both.
  (Mr Meacher) Certainly as compared to the figures which I indicated originally of 12 to 18,000 for the initial application—these figures are the ones which the Environment Agency provisionally came up with and which we have asked them now to look at—and £7,000 in subsistence charges. I accept they are substantially higher.

Mr Todd

  353. In both cases.
  (Mr Meacher) In both cases on the figures you have quoted.

Mr Marsden

  354. Why?
  (Mr Meacher) You should have asked, and perhaps you did ask, the Environment Agency.

  355. We did!
  (Mr Meacher) They picked the figures. We have said they are high. Rather than simply make comparisons with what may be decided in Scotland, we have to look at whether they are fair figures in terms of regulatory effort, and our judgment is that they are high and that is why we have asked the Environment Agency to look very carefully at them.

Mr Jack

  356. So the Environment Agency are just plucking numbers out of the ether, are they?
  (Mr Meacher) No, I am sure they are not doing that. I am sure, if you ask the question, and I believe you did, you will have received their answer.

  Mr Jack: Their answer was very simple. They said that the Scottish Agency got more grant-in-aid than they did and that is what was reflected in this differential of charges. Would you agree with that?

  Mr Mitchell: I think that is an unreasonable question. What they said was they were going to consult with the Scottish Agency.

  Mr Curry: No, they said they got more money.

  Mr Mitchell: They said they got more money and that was, it was inferred, subsidising the lower level of charges, but they also said they were going to consult with the Scottish Agency on the basis of charging. Let us carry on with Mr Marsden.

Mr Marsden

  357. They also said that they thought you had made a mistake and should have done so in the first place. Moving on though, would you therefore be consulting with your Secretary of State for Scotland and, if appropriate, the Scottish Parliament, to find out how we can compare these two sets of figures and perhaps find a common charging scheme?
  (Mr Meacher) Under devolution, of course, charges are determined in each separate case. There is no requirement for them to be comparable.

  358. There is no requirement, it is whether you would be prepared to.
  (Mr Meacher) Of course, we will look at the Scottish situation, but I repeat, the real issue is that the charges should be fair and equitable for the regulatory effort involved and that they do not bear harshly or unfairly on the industry.

  359. Very well. I know some of my colleagues have supplementary questions, but I have one more question to ask. You may have answered this. Have you made any assessment of the impact of the IPPC charges on the competitiveness of UK agriculture?
  (Mr Meacher) Since the IPPC charges have not yet been determined, and since—


 
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