Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 60-79)

DEFRA AND NFU

23 FEBRUARY 2005

  Q60  Mr Steinberg: My last question at this stage: is it not about time that the policy was moved in the direction of the farmer being more responsible for his own livestock and land than the taxpayer and that an insurance policy for farmers, even if it is through DEFRA—I do not know—should be looked at and they should not depend upon 100% basic payment and compensation from the taxpayer?

  Sir Brian Bender: The answer to your question is yes, though the route we prefer to go down and will be consulting on, I hope later this year, is a levy based system with a pump priming shared between the industry and Government. That is still a route to answering your question positively.

  Mr Jenkins: Sir Brian, I am sitting here thinking can you tell me another industry where the risk associated with polluting or accident is picked up by the taxpayer?

  Mr Curry: The coal industry.

  Chairman: Mr Curry says the coal industry.

  Q61  Mr Jenkins: Yes, the coal industry is an excellent industry. We paid out £2.4 billion to half a million people who worked in the industry who had been injured personally by their exposure to the industry. I do not think we could look at this as a one-off payment, this is a recurring situation, not only BSE but Foot and Mouth.

  Sir Brian Bender: If you remember, it was just over a year ago when this Committee had a hearing on plant health—There are some areas where we have a legal requirement to compensate but, nonetheless, the question is the extent to which the farmer, animal keeper themselves should share that responsibility, and that is, as I said to Mr Steinberg, a direction we wish to move in.

  Q62  Mr Jenkins: One of the things which amazes me, is on page 36 under figure 11, are examples of problems found on invoices submitted. Five down it says "Shredding of support documentation". Why do you think people shred documentation while there is a claim still proceeding?

  Sir Brian Bender: Perhaps I can ask my Procurement Director, Mr Rabey?

  Q63  Mr Jenkins: Did he shred the documentation?

  Sir Brian Bender: No, but he is the one who has been pursuing these claims vigilantly since 2001.

  Mr Rabey: The example of shredding documentation is currently with the police.

  Q64  Mr Jenkins: Yes, it is fraud, is it not?

  Sir Brian Bender: That is why it is with the police.

  Q65  Mr Jenkins: There is a complete list of problems like that on the form which is an indication of the mindset of people involved in the industry.

  Sir Brian Bender: Some of these were contractors that we are talking about who were not in the farming industry, but in the logistics part of it. We have been pursuing—in response to the Chairman's question earlier—cases where we think we have been overcharged very strongly for the last two or three years and in some cases through the courts. Where we can settle by mediation we are doing so.

  Q66  Mr Jenkins: When Mr Steinberg pointed out to you some of the criticisms of the European Commission and particularly the cost—I loved your reasoning there, I thought that was bloody ingenious—this bull was a yearling bull and it is four months older and its valuation goes from £14,000 to £40,000, can you talk me through that, why they go up like that? If I had a bull I was selling worth £40,000 in four months' time, I do not think I would sell it for £14,000.

  Sir Brian Bender: The information I have, as I say, is that the bull was a yearling, it was due to lay down a bank of semen for use in a champion herd. We did nonetheless query the valuation before paying it and the valuer said he had done it very thoroughly, it took two days and this would be an animal which was impossible to replace. Now that is one particular case so that is the information I have on that case.

  Q67  Mr Jenkins: That was it. The valuer said it took two days to value this bull, the person who sold the bull four months ago did not realise the bull would be worth that much money and sold it for £14,000?

  Sir Brian Bender: I think looking forward, the arrangements we have with the national list of valuers—which were described to Mr Steinberg—are intended to ensure, whatever happened in the past, there are not abuses in the future.

  Q68  Mr Jenkins: We will look forward, we shall not look back because it is better to look forward with your Department rather than backwards. We are always promised one thing: things are going to get better. Then you come before this Committee and we are given promises. We are promised that the biosecurity and movement of animals in this country is far, far better than it has ever been and yet our Report shows there are offences still being committed today by farmers and animal movement people. What are you going to do to stop this?

  Sir Brian Bender: Do you want to say what we are doing on the farm health plans clamping down on biosecurity?

  Dr Reynolds: Yes. Farm health plans is one of the major initiatives in the animal health and welfare strategy and we have a working group there to look at sharing best practice. It is based on individual sectors. The pig sector is particularly active there. This is an area where each farm is going to be encouraged to have their own farm health plan to set out their approach individually to handle new risk. On biosecurity, it is one of the main considerations on bringing in the current animal movement regime which has to be associated with high standards of biosecurity. Only this week there is a new promotion on a poster and advertising campaign to particularly address biosecurity in markets.

  Q69  Mr Jenkins: We can all sleep at night then, can we?

  Dr Reynolds: It is all a question of reducing risk, is it not?

  Q70  Mr Jenkins: What are you going to do to stop it? There are people out there who are not complying with the rules and regulations, what are you doing to stop it?

  Sir Brian Bender: Through targeted inspections co-ordinated between local government and the State Veterinary Service based on risk assessments.

  Q71  Mr Jenkins: Are we setting up those targeted inspections? What plan have you got and what risk analysis have you done? What wagons are you stopping because it is a high risk index?

  Ms Stacey: We have a framework agreement in place with local authorities which enables local authorities to work with our SVS staff to identify on a risk-based approach those which they should be targeting. That is done taking into account the nature and scale of the businesses that we are looking at and also it allows for local knowledge to be put in.

  Q72  Mr Jenkins: Excellent. Where is the highest risk area? Is it a particular geographical area or is it a particular commodity?

  Dr Reynolds: There are a number of areas of risk. The particular risks are in areas of high animal density and where there are significant movements of animals.

  Q73  Mr Jenkins: Yes.

  Dr Reynolds: Those are two particular risk areas and that is why, of course, the animal movement regime was brought in with a six day standstill from the time of arrival of a consignment of animals on a farm before further animals could move off: six days in the case of cattle and sheep and 20 days for pigs.

  Q74  Mr Jenkins: You are satisfied that your inspection regime is rigid enough to stop and reduce the number of infringements we are seeing today in the industry?

  Sir Brian Bender: No. I am satisfied with the second verb you used, "reduce". There is more we have to do in terms of risk based targeted inspection to deal with these.

  Q75  Mr Jenkins: Tell me what you have to do?

  Sir Brian Bender: We have to pursue more the sort of approach that Ms Stacey was referring to a few minutes ago.

  Ms Stacey: That is right. We do have operational partners out there: local authorities, trading standards officers, for example. We have a pool of local knowledge but we need to be more systematic in exchanging that and making decisions about what to do with it.

  Q76  Mr Jenkins: I think I have seen a figure in the Report that 23% of vehicles stopped either did not have the correct documentation or the vehicle itself was not acceptable. What sort of figure would you like to see, 10%, 5%? What is your target percentage of movements that the police or authorities would stop that would meet the laid down criteria?

  Ms Stacey: The approach has been to identify those sites that are highest risk, for example every vehicle that is moving in and out of the market is actually checked. The approach has been to identify high risk.

  Q77  Mr Jenkins: 23% at the present time, so what is the figure that you are targeting? Is it 10%, 20%? When do you intend to meet the target?

  Sir Brian Bender: I cannot answer that. We can provide a note if it would help.[5]


  Q78 Mr Jenkins: I have not even got off page one yet. If there was another outbreak, how confident are you that you would get that outbreak notified within two days of it being identified or being picked up?

  Sir Brian Bender: How confident is a very difficult question to answer. Through the combination of greater awareness, through the information we have put out to farmers, through the increased emphasis on biosecurity, through our own surveillance strategy that the Chief Vet can say more about, through the inspection arrangements, we would be more optimistic than we were. Will there ever be another Bobby Waugh, I cannot say that. We are talking about risk reduction here.

  Q79  Mr Jenkins: Does your contingency plan take into consideration the deliberate introduction of the disease on our farms?

  Sir Brian Bender: Yes. First of all, at a general level it is hard to imagine a deliberate introduction of one strain being more damaging than it was in 2001 when there was a virus on over 50 farms in a very geographically dispersed area. Our contingency plan is intended to deal with that sort of situation. Secondly, if there were a number of different strains, which deliberate introduction could involve, we believe that the combination of diagnosis, laboratory facilities and, indeed, if it came to it, vaccination antigens could also tackle that. Certainly our planning addresses the possibility of deliberate introduction either of a single strain, which as I say would be the same sort of situation, or of several strains.


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