Select Committee on European Scrutiny Third Report


12 Identification and registration of cattle

(26141)

14730/04

Special Report No. 6/2004 by the Court of Auditors on the organisation of the system for the identification and registration of bovine animals in the European Union

Legal base
Deposited in Parliament23 November 2004
DepartmentEnvironment, Food and Rural Affairs
Basis of considerationEM of 6 December 2004
Previous Committee ReportNone
To be discussed in CouncilNo date set
Committee's assessmentPolitically important
Committee's decisionCleared

Background

12.1 Although a number of Member States had set up, on their own initiative, cattle identification and registration systems prior to 1992, the reforms of the Common Agricultural Policy agreed then appreciably increased the incidence of direct aids available to the livestock sector,[36] and hence the need for a new compulsory Community-wide system to improve controls over budgetary expenditure and enable checks to be carried out under the Integrated Administration and Control System (IACS). This new system should have been operational on 1 October 1993, and the IACS database by 1 January 1997, though the majority of Member States met neither of these deadlines.

12.2 In the event, however, animal health problems, notably the BSE crisis, led the Council to review these provisions, and to seek the traceability of cattle from birth to slaughter, and from slaughterhouse to product distributor. Accordingly, it decided in 1997 to reinforce the existing legislation by requiring all cattle born, imported or intended for intra-Community trade to be given an identification number and registered as from 1 January 1998; by requiring fully operational computerised databases making it possible to trace cattle from birth to slaughter or death as from 31 December 1999; and by introducing on 1 January 2000 a compulsory labelling scheme for beef. However, as the Court observes, difficulties in defining labelling standards and other practical constraints resulted in the last of these deadlines being postponed until 1 January 2002.

12.3 In this document, the Court of Auditors has examined the design of the identification and registration system and the controls carried out by the Commission to verify its correct implementation in the Member States. It also aimed to verify that an effective system for identifying and registering cattle had been established, and to evaluate whether the regulations setting up the system had made it possible to achieve the prescribed objectives. It does not consider the provisions on labelling.

The current document

12.4 The report notes that the identification and registration system has four main components— ear tags bearing a unique code, making it possible to identify each animal individually (together with the holding on which it was born); passports containing this information, and intended to accompany any movements of the animal; individual registers kept on each holding; and computerised databases set up in every Member State, making it possible at any given time to find the identification numbers of all the cattle on a given holding, and all the movements of all the animals from birth (or importation). Those Member States with databases deemed by the Commission to be fully operational may decide to discontinue issuing passports for internal movements of cattle, and they may also reduce from 10% to 5% the incidence of on-the-spot checks. The report also notes that the main responsibility for implementation rests with the Member States, which are required to define and administer the ear tags and the format of the farm registers, to issue the animal passports, to lay down the procedures for declaring cattle movements in order to keep their national database up to date, and to carry out on-the-spot checks on keepers of cattle.

12.5 The Court considers a number of aspects of the arrangements. First, as regards the design of the system at Community level, it notes that:

  • although the Commission had proposed a transparent procedure for the exchange of data between Member States on animal movements, the legislation adopted by the Council contains no such provision, and, although batches of animals transported can be identified, this is not the case with individual animals;
  • any such exchange of data is in any case compromised by the different format of the data assembled in the different Member States, and in particular by different systems of identification numbers;
  • the drafting of the legislation is in places imprecise, particularly as regards what comprises a keeper of animals, and the obligations which keepers must fulfil;
  • although passports of dead animals or those exported to another Member State must be returned to the issuing authority, the mechanisms for achieving this are ineffective, and contain no provision for invalidating passports which have been returned; and
  • it is sometimes difficult to establish a link with the country or holding of origin.

The Court concludes that, as it stands, the system does not guarantee the traceability of animals moving from one Member State to another, or into and out of the Community.

12.6 Secondly, the Court comments on the management of the system at Community level, where it notes that, although the Commission can introduce implementing rules governing ear tags, passports, registers, on-the-spot checks, and administrative sanctions, it has no legal competence to do so as regards the setting up and management of the national databases, it being confined in such cases simply to assessing whether a particular database is fully operational. Furthermore, it notes that, even here, Community legislation does not lay down the conditions for such recognition. The Court also observes that, although the database in Northern Ireland has been recognised as fully operational, that is not the case in Great Britain, where a draft decision proposing 1 April 2002 as the operative date was suspended because of weaknesses found. It adds that the bases in question are incompatible, and that the setting up of two such bases in a single Member State, with one recognised by the Commission, and the other not, is not in conformity with the Community legislation. (On a separate point, the Court also notes that, whereas animals eligible for the special measures taken following the BSE crisis must in all other Member States be identified and registered, this is not the case in the UK, where the measures in question were adopted earlier.)

12.7 The Court's report also considers the supervision exercised by the Commission. It points out that responsibility for identification and registration has since 1999 rested with the Directorate-General for Health and Consumer Protection, whereas the control and payment of animal premiums is a matter for the Agriculture Directorate-General (which also has responsibilities for the clearance of accounts on the related budgetary expenditure). This has given rise to problems of co-ordination between the Directorates, and the Court notes that, although non-compliance with the provisions on identification and registration does not involve any financial penalties, such penalties do exist in the case of IACS expenditure.

12.8 Thirdly, the Court has reported on the results of its audits in the four Member States[37] it visited during the preparation of its report. In particular, it notes that:

  • although the quantities of ear tags distributed to farmers should cover requirements for no more than one year, this condition was not always observed, and that an inadequate evaluation was made of the quality of the tags;
  • farm registers were not always in the format laid down, and did not include all the information required;
  • passport formats varied considerably, making it difficult for farmers to understand those issued in a different Member State; and
  • mechanisms for detecting anomalies in information on movements of animals also varied considerably.

12.9 In the light of its various findings, the Court recommended that:

  • the legislative framework should make provision for systematic exchanges of information between databases in the Member States, so that intra-Community movements of cattle can be traced in the way envisaged;
  • procedures for checking and returning passports to the issuing body should be implemented;
  • the Commission should be authorised to adopt common rules governing the operation of Member States' databases and their inter-connection; and
  • the procedure for recognising databases should be strengthened by re-defining the criteria which must be met, and with the Commission carrying out regular checks to ensure that they are fully operational.

The Government's view

12.10 In his Explanatory Memorandum of 6 December 2004, the Minister for Nature Conservation and Fisheries at the Department for Environment, Food and Rural Affairs (Mr Ben Bradshaw) says that the UK welcomes this report, and agrees with the Court that the Commission should set common standards and harmonise data exchange between Member States. It also considers that the Commission's approach of providing guidance is the most useful, whilst allowing Member States freedom to adopt the practices most appropriate their industry. In particular, whilst the Minister agrees that further commonality is desirable, especially in relation to intra-Community trade, he says that the UK would not want the Commission to prepare detailed implementing legislation, database design or operational practices.

12.11 The Minister also comments on the Court's observations about the position within the UK. He says that its criticisms have been discussed with the Food and Veterinary Office and the National Audit Office, and that a substantial action plan to improve the reliability of the data in Great Britain was reported to the Committee of Public Accounts. He suggests that, as a result, substantial progress has been made, with the introduction of an improved IT platform, the cleansing of the data held, provision of regular statements to farmers of their database records, and further education and information. He adds that greater integration between the working practices of the databases in Great Britain and Northern Ireland has been established, including access to the respective databases to assist the tracing of animals moving between the two, and that more generally a programme of work continues with the aim of obtaining full accreditation of the Great Britain Cattle Tracing Scheme database.

Conclusion

12.12 As is often the case, the Court of Auditors has identified a number of significant points where the implementation of Community legislation has fallen short of expectations, including in this case in the UK. We therefore think it right to draw those criticisms to the attention of the House. However, given the steps which have since been taken by the Government to address the Court's observations, at least so far as they directly affect the UK, we do not think any further consideration is called for, and we are therefore clearing the document.


36   There are 81 million cattle in the Community, of which 20.5 million are in France, followed by Germany and the UK, with 14.0 and 10.4 million respectively. In 2004, budgetary provision for the beef regime was €8,100 million, accounting for 17% of total agricultural expenditure, of which €7,300 million comprised direct aids. Back

37   France, Germany, Italy and the UK (Great Britain). Back


 
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