Select Committee on Environment, Food and Rural Affairs Appendices to the Minutes of Evidence


APPENDIX 5

Memorandum submitted by the RSPCA (H5)

EXECUTIVE SUMMARY

  The CAP has to date not encouraged the promotion of good animal welfare farming practices under its incentive programmes. Some of the payments under Pillar I linked to production could conversely encourage a shift towards more intensive farming methods. The Commission proposals in the MTR are a radical and brave step to address this problem and place animal welfare firmly at the centre of European farming. The RSPCA welcome the proposal to delink subsidies from production and the coupling of all payments to baseline legislative standards. The RSPCA also believe that the addition of four new areas into the RDR to promote better animal welfare will set up new incentive schemes for producers to meet higher standards than the baseline ones. Finally it sees the proposal to compensate producers to meet animal welfare standards that are higher than in third countries as being consistent with its WTO AoA strategy and ensure that European farmers can continue to meet consumer demands for improvements in the ways that animals are reared and farmed.

  1.  The RSPCA welcomes the opportunity to give evidence to the Environment, Food and Rural Affairs Committee on the mid-term review of the CAP. The Society feels that the mid-term review comes at a critical time for animal welfare. Animal welfare was not widely discussed in the 1999 Agenda 2000 reform. However consideration of animal welfare has changed in two important ways since Agenda 2000: the legal position under the Treaty of Rome changed in 1999 when the EU adopted a Protocol on animal welfare under the Treaty of Amsterdam, which has strengthened the case for improving animal welfare measures under the CAP. Secondly, in November 2001 the Doha Round was launched under the World Trade Organisation, which has a direct link into CAP reform. The Round has pledged to phase out export subsidies, improve market access and take account of non-trade concerns such as animal welfare. The EU has proposed various measures at the WTO agriculture negotiations to ensure that measures to support and encourage animal welfare can be taken within existing trade rules.

  These include the proposal to give payments to producers to compensate them for higher costs involved in producing products to welfare standards higher than in third countries.

  2.  The MTR also comes at a critical time for British agriculture, with the expected publication of DEFRA's strategy on the future for British farming following the Curry, Anderson and Royal Society reports. The Society has drawn up its own position paper Into the fold: bringing animal welfare into the CAP, which details how it sees animal welfare being developed and encouraged under the CAP payment scheme. Under Pillar I payments, the RSPCA believes that the system of giving direct headage payments or market support payments could encourage animal welfare problems. For instance in the dairy sector, linking the payment of subsidies to the amount of milk produced under the regime has encouraged increasing productivity from individual cows, despite a reduction in stocking rates in the 1980s. The system offers few inducements to reverse this process, which may lead to welfare issues such as increased incidence of mastitis, lameness infertility or premature culling. At the same time there were no direct links between Pillar I payments and welfare standards. This connection should be made. Under Pillar II payments, animal welfare was only mentioned briefly as an objective under the Rural Development Regulation and there were no incentives under the RDR to promote higher levels of animal welfare.

  3.  The RSPCA welcomes most of the recommendations on animal welfare in the Commission proposal. The Society believes that these recommendations, if agreed, rigorously defined and properly enforced, will go a long way to ensuring that animal welfare is centrally positioned within European farming and different levels of animal standards developed. The Society believes that the proposal to decouple payments from production levels would turn the CAP regime away from encouraging intensification. The proposal to include four new areas on animal welfare to the Pillar II payments would finally place incentives to encourage producers to farm on a more sustainable and welfare friendly level.

  4.  The proposal to decouple payments from production is supported. Decoupling would also be put the EU into a strong position at the AoA negotiations, as all existing payments could theoretically be moved from the Blue to the Green box. This would put the EU in to a stronger negotiating position for supporting its position on non-trade concerns, such as animal welfare. However, there are concerns on the implementation of the payment and how it would be calculated. For instance, farmers could stock to high levels of animals in the year that has been chosen as the benchmark year for this payment, and measures would have to be taken to ensure that this does not occur. It is also a concern that the dairy payments would not be included until the Agenda 2000 reforms have been implemented, as this would see reform of the dairy regime postponed until 2005.

  5.  A wider cross compliance mechanism is supported by the RSPCA as this would, for the first time, ensure that all CAP payments are conditional on meeting baseline welfare requirements. The RSPCA has proposed a three tier pyramid system of incorporating animal welfare into the CAP. The basic standard would be the minimum legislative standards as recognised in this cross compliance mechanism. Baseline legislation is in force for veal calves, laying hens, pigs and transportation of live animals, and there are laws regulating antibiotics and use of hormones such as BST[9]. New laws in other farming sectors, such as dairy cattle, beef cattle, ducks and geese could be agreed in the next decade. Until this occurs, it is recommended that the Council of Europe Recommendations on these species are followed. All member states are members of the Council of Europe and have agreed to these Recommendations. These would form the base of the pyramid and would under cross-compliance payments be made mandatory for all CAP payments under Pillar I. These requirements would solve the anomaly of a farmer receiving CAP support payments even if he was being prosecuted for non-compliance with welfare standards. The aim of the higher levels would be the promotion of positive action to create a more sustainable farming process. Incentives to meet these levels are discussed below under the RDR scheme.

  6.  As the voluntary cross compliance mechanisms have not been extensively taken up after the Agenda 2000 reforms, the RSPCA agrees that mandatory cross compliance should be enforced. The introduction of mandatory cross compliance would be consistent with the recommendations of the Curry report that stated that the small minority of "rogue" producers who operate below the welfare codes should be pushed out of the market (p 100 Farming and Food: a sustainable future). The RSPCA believes that these cross compliance conditions would meet the test of balancing commercial considerations with animal welfare ones, as they are merely implementing baseline legislation. This would also nullify the issues of competitiveness with other EU member states.

  7.  The RSPCA welcome the Commission proposals to widen the remit of the conditions and incentives under Pillar II. Creating the RDR under Regulation 1257/1999 in an attempt to re-position the CAP from delivering production targets to enhancing rural environments was one of the main achievements of Agenda 2000. However, although the present RDR does include animal welfare as an objective in five of its chapters, RSPCA research shows that the animal welfare issues have failed to be adequately promoted or funded. In the UK the Rural Development Plans (RDPs) in the four devolved administrations shows animal welfare has been highlighted as a priority in two of the four areas. Only in Wales have specific measures encouraged provisions to improve animal welfare in all four of the areas where subsidies could be given (support for farm holdings, training, marketing and rural area promotion).

  8.  Under-funding is also a problem, both of animal welfare objectives under the RDR and of the RDR itself. The budget for the RDPs for the four areas of the UK up to 2006 show that only 16 per cent of the total English budget and 2.55 per cent of the Welsh will be used for the issues outlined above that could benefit animal welfare. For instance, in the year 2001-02, £2 million has been set aside for training in England under the RDR[10]. The majority of the budget is used in agri-environment schemes and Less Favoured Areas neither of which mention animal welfare as an objective at present though the Commission has proposed that animal welfare be integrated into the agri-environment scheme under its MTR proposals.

  9.  The RSPCA welcomes the proposal to encourage take up of assurance schemes under the RDR. This proposal is also consistent with the recommendations from the Curry Commission (p 41 Farming and Food: a sustainable future) but there are a number of unanswered questions. In particular, the scope of payment: is the scheme for existing assurance members or only new ones, in which case the existing one would be penalised even though they had operated the higher standards for longer. The RSPCA recognises that the welfare outcome of an assurance scheme is dependent on the level and specificity of standards and the rigour and consistency of enforcement. RSPCA defines assurance schemes as those promoting higher standards of welfare rather than those that have criteria low enough to allow all producers to participate. The incentives for assurance schemes would, under this parameter, provide the higher level of animal welfare standards in European farming. A framework to ensure that such payments would only go to encouraging these higher standards has been drafted by the RSPCA and includes ensuring that the scheme is transparent, has standards that cover all stages of the animals' lives and is independently audited. The RSPCA's Freedom Food scheme is seen as an assurance scheme that fits this definition and now has standards operating in eight sectors, including beef and dairy cattle and sheep.

  10.  The RSPCA welcomes the new method of allowing compensation payments to higher-welfare producers to counteract the higher costs from such systems and ensure a level playing field against imports from third-country producers still using intensive systems. It is recognised that higher welfare standards can lead to higher production costs—particularly in labour, additional land required and feed. In one sector—the egg industry—research conducted by the RSPCA in 2001 underlined the disadvantages faced by European egg producers once the battery cage is phased out under new European laws unless a system of compensation payments are agreed. If welfare standards are to be maintained and farming not undercut by imports produced to lower standards, farmers that produce to higher standards need to be compensated.

  11.  The RSPCA believe that such a payment would create the incentives to help farmers change over from intensive systems. It would also be consistent with the approach adopted by the EU in the AoA negotiations where the EU has proposed three methods to maintain higher welfare standards in the face of incoming exports of products produced under lower welfare standards, one of which is allowing compensation payments for producers attaining higher standards[11]. Prior to producing these proposals the Commission ran the risk of proposing one method in the AoA negotiations, which could not be delivered through its own agricultural subsidy schemes. This proposal closes that loophole and also provides a methodology to ensure that agreed legislation to improve animal welfare can be implemented and further proposals to raise standards to improve animal welfare will not be restricted in the future.

  12.  The Society supports the proposed assistance for farm audits under the RDR. This would be consistent with the approach for whole farm audits, as proposed by the Curry Commission and the RSPCA demand for farm licensing to ensure compliance with certain standards. It would also provide an additional safety net to cross compliance to ensure that the baseline standards are being followed. Proposals to give payments to such audits under the RDR are consistent with this approach.

10 September 2002



9   In addition Directive 98/58/EC gives baselines standards for all farming, based on the Council of Europe Convention for the protection of animals kept for farming purposes. Back

10   Farming and Food. Report of the Policy Commission on the future of farming and Food. UK 2002. Back

11   EC proposal on animal welfare and trade in agriculture. G/AG/NG/W/19 June 2000. Back


 
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