APPENDIX 1
Memorandum submitted by the Ministry of
Agriculture, Fisheries and Food (M14)
AGRICULTURE CLASS X
VOTE 1, REDUCTION IN INTERVENTION BOARDS'
DEPARTMENTAL EXPENDITURE LIMIT (DEL)
VOTE 2, MINISTRY OF AGRICULTURE, FISHERIES
AND FOOD'S WINTER SUPPLEMENTARY ESTIMATE
The Intervention Board Executive Agency did
not require a substantive Winter Supplementary Estimate to effect
changes to the Agency's DEL and Departmental Running Costs. The
details of an overall reduction in Class X Vote 1 were announced
by the Minister of Agriculture, Fisheries and Food to the House
of Commons on 5 November 1999 (Official Report Vol 337 No 145).
Through the PQ the Agency sought partial take-up
of Running Costs and Capital End-Year-Flexibility (£2,042,000
and £268,000 respectively). The Agency also provided Treasury
(for reallocation to other Agriculture Departments) the sum of
£100,000,000, for Hill Livestock Compensatory Allowances
(HLCA) payments (£60,000,000), Specified Risk Material (SRM)
controls (£22,000,000), the waiving of receipts on SRM controls
(£8,000,000) and cattle passports (£9,000,000) and,
for a business support measure (£1,000,000).
The net effect of these changes reduced the
Agency's DEL by £97,690,000 from £502,538,000 to £404,848,000.
The Ministry's Winter Supplementary Estimate
(WSE) shows an increase of £55,186,000 in the Ministry's
Class X Vote 2 total from £722,206,000 to £777,392,000.
It covers:
(i) Take-up a transfer of £150,000 from
the Department of Trade and Industry.
(ii) Increase of £22 million in payments
to the Meat Hygiene Service (MHS) for Specified Risk Material
(SRM) control, (from Vote 1).
(iii) Reduction of £8 million in MHS's
receipts, (from Vote 1).
(iv) Reduction of £9 million in receipts
from charging for cattle passports, (from Vote 1).
(v) £1 million for a business support
measure, (from Vote 1).
(vi) Increase of £15.3 million in Hill
Livestock Compensatory Allowance payments, (from Vote 1).
(vii) Increase in the Centre for Environment,
Fisheries and Aquaculture Science (CEFAS) running costs by £2.139
million and receipts by £2.403 million.
The supplementary also covers the use of additional
£12.7 million of land sales receipts to finance various capital
projects, plus a reclassification of £4.266 million VAT recoveries
and rents from minor occupiers of MAFF's property.
The main elements are summarised below:
PROTECTION OF
PUBLIC HEALTH
Subhead A2
An increase of £22 million in respect of
payments to the Meat Hygiene Service (MHS) for enforcement of
Specified Risk Material (SRM) controls. This increase is the result
of a change in policy on cost recovery in respect of SRM controls
announed by the Minister last September as part of a support package
for farmers.
Subhead AZ
A reduction of £9 million in receipts from
charging for cattle passports as a result of a change in policy
on cost recovery from the industry as part of the support package
for farmers.
ASSIT THE
DEVELOPMENT OF
EFFICIENT MARKETS
Subhead E2
An increase in funds subsequent to the Minister's
announcement, as part of the support package, that there will
be £1 million aid to help primary producers improve their
marketing, collaboration and competitiveness.
ENCOURAGE ECONOMIC
AND SOCIAL
DEVELOPMENT IN
RURAL AREAS
Subhead G1
A transfer of £150,000 running costs from
the Department of Trade and Industry for the cost of additional
Agricultural Wages Inspectors enforcing the national Minimum Wage
in the agricultural sector.
Subhead G4
As part of the September 1999 support package
the Minister announced that the previous year's £60 million
increase in Hill Livestock Compensatory Allowances in the UK would
be maintained for a further year. Of this figure £15.3 million
was taken up by the Ministry for payments of the allowance in
England.
DEPARTMENTAL OPERATIONS
Subheads M1 and MZ
An increase of £4.233 million in core-MAFF's
gross running costs (M1) and receipts (MZ) to allow for the re-classification
of VAT recoveries and rents from minor occupiers of MAFF property.
Subheads M3 and MZ
An increase of £12.7 million in the Ministry's
capital under M3 for various capital projects, financed by additional
land sales receipts under MZ.
OPERATIONAL COSTS
OF THE
MINISTRY'S
EXECUTIVE AGENCIES
Subheads N1 and NZ
An increase of £2.139 million in running
costs (N1) and £2.403 million in receipts (NZ) for the Centre
for Environment, Fisheries and Aquaculture Science (CEFAS), resulting
from projects under the Wider Markets initiative.
A reduction of £8 million in the Meat Hygiene
Services' receipts (NZ) following a change in policy on cost recovery
in respect of SRM controls announced by the Minister last September.
An increase of £33,000 in MAFF agencies'
gross running costs (N1) and receipts (NZ) to allow for a reclassification
of VAT recoveries.
January 2000
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