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


Supplementary memorandum submitted by the Department for Environment, Food and Rural Affairs

FURTHER WRITTEN QUESTIONS TO DEFRA AND REQUESTS FOR INFORMATION

BACKGROUND

  The following document includes questions that the Committee did not have time to cover during its evidence session with the Permanent Secretary on 18 July 2007. It also sets out the various requests made by the Committee for the Department to provide further information in writing.

  Committee requests and questions in italics.

REQUESTS FOR FURTHER INFORMATION

1.  The Department agreed to provide the Committee with:

    A quarterly update of the Department's progress initiating the Renew Defra programme (Q 18)

  Please see the attached highlight report (from 29 August 2007).[18] We will send further highlight reports at the end of each quarter.

    The outcome of the ongoing exercise to determine administration budgets for 2007-08 (Q 32)

  Following detailed analysis of our budgets we consider that 2007-08 allocations include provision for £352 million of expenditure to be classified as administration. These allocations imply a £67 million overspend against the existing £285 million baseline for Administration Costs and the Department continues to work to reduce this expenditure. We are also in discussion with Treasury on the correct classification of some items of professional services expenditure, which may have consequences for our administration control total.

    A detailed note about how local authorities will contribute to Defra's financial efficiency savings target, including an explanation of how these efficiencies will be achieved if local authority waste management costs are "rising steadily" (page 37 of the Departmental Report) (Q 64)

  Defra's target for the area of Environmental Services (Waste Management and Street Cleansing) is to facilitate delivery by Local Authorities of efficiencies amounting to £299 million in 2007-08 against a 2004-05 baseline. The table below shows the trajectory initially planned.


Savings
2005-06
2006-07
2007-08

Waste Procurement, £m
25
95
154
Street Cleansing, £m
5
10
10
Total, year by year, £m
30
105
164
Total, cumulative, £m
30
135
299


  The savings to be made were calculated using an economic modelling system based on costs, "Local Authority Waste Recycling Recovery and Disposal" (LAWRRD).

  The model assigns an authority to one of three broad typological groups—urban, semi urban and rural. The distribution of properties from which waste has to be collected and transported makes a fundamental difference to the most suitable approach an authority should choose to adopt. Amongst its assumptions there is capacity to quantify a number of behavioural and decision options, including the following:

    —  authorities plan their waste management strategies three to five years in advance;

    —  there is maximum integration of waste collection and disposal operations in each authority;

    —  the extent to which an authority chooses to adopt new waste disposal technology, enabling it to sell landfill capacity;

    —  the anti-incineration attitudes of the electorate, modelled at £12 per ton;

    —  the pro-recycling attitudes of the electorate;

    —  pressures arising from meeting the landfill directive; and

    —  market pressures arising from a number of players leaving the waste management business.

  The model was used to profile the local authority expenditure on waste management with and without the adoption of "optimal" waste management services. Both profiles showed a rising cost profile, reflecting the higher cost of recycling waste rather than just disposing of it through landfill. The forecast savings represented the difference between the two profiles. Therefore, savings reflect the costs of actual work compared with the "without optimal" waste management profile. In the most simple terms, even though the costs are rising, the costs are lower than they would have been had we done nothing.

  The main benefits in the area of Environmental Services are expected to derive primarily from more efficient procurement and delivery of waste management services. The waste management services themselves are expected to benefit from a number of areas of efficiency:

    —  collaborative procurements;

    —  better specifications;

    —  improved efficiency of contractor processes; and

    —  improved efficiency of client processes.

  Progress towards the targets is reported by local authorities through their forward-looking Annual Efficiency Statements in April of each year, their backward-looking Annual Efficiency Statements in June of each year, and the mid-year Annual Efficiency Statements in November of each year.

    Details of how the additional flood management expenditure will be phased in up to 2010-11, and the various sources of this expenditure (once this information becomes available) (Q 77-79)

  Details of how the additional flood management expenditure will be phased in up to 2010-11 will be decided in the Department's forthcoming business planning round and the medium term planning exercise for the Flood and Coastal Erosion Risk Management capital programme. We will of course let the Committee have the information once the details are available.

    A detailed note about the provision for possible EU disallowance, including HM Treasury's contribution (Q 93)

  Not printed.

FURTHER QUESTIONS TO THE DEPARTMENT

Headcount reduction target

    In its response to the Committee's preliminary questions (Q 3), the Department says an additional financial risk this year is the "Department's ability to reduce its Administration costs in line with the targeted headcount reductions, as there is a systemic time-lag between the release of staff and the resultant savings to Administration costs". The Department adds: "The Permanent Secretary will be able to update the Committee at the hearing on 18 July".

1.  Could the Department provide an update about the possible financial risk it is facing this year because of the time-lag between targeted headcount reductions and savings in administration costs?

  The answer to this question is closely linked to the information we give above in relation to administration budgets for 2007-08. The latest administration budget for 2007-08 shows an outturn of £352,205,000 set against a baseline of £285 million. This assumes that we will achieve the headcount reductions as planned—delivering the remaining headcount reductions of 328 by the end of December 2007 to save three months of salary in this year. The financial risk of not meeting the headcount reductions would depend on the extent we might miss the target by and the length of time it would take to redress the balance. Therefore, it is difficult to give anything other than a rather crude assessment of the financial risk.

  However, the "worst case" scenario in which the 328 surplus members of staff remain on our books until (at least) 31 March 2008, would add about £1.2 million to the budgeted paybill each month. This figure is based on an average monthly pay cost of £3,708. Over the course of 2007-08 this would give a financial risk of approximately £3.7 million (328 members of staff x £3,708 x three months = £3.649 million).

    The Department's initial RPA headcount reduction target was 1,600 by the end of March 2008; the largest part of Defra's total 2,400 headcount target. Page 112 of the DAR shows that there will now be zero RPA redundancies by that date. The DAR states, however, that there will be 600 RPA redundancies by the end of the next CSR (07) period, that is by 2010-11.

2.  Why is the new RPA headcount target so much lower than the initial one, even though it's three years later? Is this an indication you think current difficulties at the RPA will not be fully resolved until at least 2011?

  No. The RPA has made real progress in resolving the problems it had in implementing the Single Payment Scheme. This is demonstrated in its meeting its target for paying SPS 2006 claims. We expect this progress to continue in the SPS 2007 scheme. Although there is much to put right, the aim remains to provide a stable service for SPS 2008.

  The problems which arose in making SPS 2005 payments occurred after the RPA Change Programme was set up—the original planning assumptions are, therefore, no longer valid. As the EFRA report on SPS documented, the scheme turned out to be much more complex than was originally envisaged. The RPA is also now implementing SPS on a different basis to that originally envisaged (in particular on a case working rather than task basis). We do, however, expect staff numbers within the Agency to reduce as SPS becomes more stable. We expect the RPA to improve its administration and make steady progress in reducing its headcount by about 900 in 2010-11.

RURAL PAYMENTS AGENCY

IT at the Rural Payments Agency

  Defra's response to the RPA report tells us that it will be spending about £50 million on the RPA's IT systems in this and the two coming Financial Years: £19.9 million in 2007-08, £21.4 million in 2008-09 and £7.7 million in 2009-10.

3.  Have other budgets been cut to find the money for IT work at the RPA? If not, how was the money found?

  The investment required for the RPA's IT systems for 2007-08 was allocated as part of the budget setting round for this year and reflects Ministers' commitment to support the Agency's Recovery Plan and improve the accuracy and timeliness of payments to farmers. Compared to the funding required in 2006-07 for the RPA's operating costs, this actually represents a reduction of £64 million from £334 million to £270 million and the funding was prioritised as part of the budget setting exercise. Funding for 2008-09 and 2009-10 has not been decided yet as budgets for future years will only be agreed following announcement of Defra's CSR settlement in October.

4.  How much of this money being spent on the RPA's IT will be paid to Accenture?

  The Department's response to the Select Committee's report on SPS includes a figure of £55.7 million for planned system improvements. These include business process re-engineering and support services as well as developments of our IT systems, including developments required as a result of already known policy changes. Policy changes incorporate reforms to the sugar regime into SPS, implement financial discipline controls and support simplification of SPS concerning set aside, energy crops and, potentially, the abolition of the 10 month rule. These changes will simplify RPA processes as well as providing benefits to farmers, in terms of the simplification of rules which relate to SPS payments. In total, we anticipate that about £40 million of these costs would be paid to Accenture over three years.

RPA disallowance

5.  If agreed with the National Audit Office, could the Department provide the agreed RPA provision on the balance sheet for 2006-07

  The provision for disallowance in the 2006-07 resource accounts is still being audited by NAO and so the figures given below have yet to be agreed. The provision will be made in Defra's accounts rather than the RPA's.

  The total proposed provisions are £348 million of which £150.2 million was provided in 2005-06 and £197.8 million in 2006-07. The provision is for potential disallowance in respect of SPS 2005, SPS 2006, other CAP schemes and also an amount for CAP scheme payments made by the devolved administrations.

  In addition to the provisions, accruals of £80.4 million (£17.4 in 2005-06 and £63.0 million in 2006-07) have been made in respect of disallowance for the Fruit and Vegetable Operational Programmes and late payment penalties for SPS 2005 to 30 June 2007.

  Contingent liabilities of £99.6 million are in respect of potential additional late payment penalties for SPS 2005 and potential increased disallowance for SPS 2005 and SPS 2006. These are also still subject to audit.

  The table in the section above on requests for further information gives a full breakdown by scheme.

6.  What progress has been made with the European Union in agreeing the final disallowed amounts for each of the relevant financial years?

  The EC has not yet completed all the audit work on SPS 2005 and as yet has made no proposals over the level of disallowance. No work has commenced on the audit of SPS 2006.

  The RPA has contested one assessment of disallowance, in respect of another scheme, by challenging the decision at the Conciliation Body (CB). The CB has requested further evidence from RPA in support of the case. No timetable has been set for publication of the CB's findings. It should be noted that the CB's findings are not binding on the EC and so may not affect the final disallowance assessment.

  Other proposals for disallowance received from the EC are being challenged by RPA and as yet there are no agreed figures.

CONSULTANTS

  Page 122 of the DAR shows that, in 2005-06, Defra spent £260 million on professional services, including £131 million on IT and telecommunication and £44 million on management and business consultancy. The total has increased from £141 million in 2002-03. Defra says that:

    The guiding criterion has been and remains value for money from the use of consultants and professional services where it is appropriate and necessary to utilise them as an alternative to building in-house capacity in supporting the Department's strategies and objectives together with front line service delivery.

7.  Why has your spending on consultants and professional services been so high in the last two financial years? Do you have plans to reduce this spending?

  The table below shows the latest figures on expenditure on professional services, including data relating to the whole of Financial Year 2006-07.


Professional Services
2002-03
2003-04
2004-05
2005-06
2006-07

IT & Telecommunication
£45,431,803
£52,805,769
£99,254,525
£130,937,698
£162,829,742
Management & Business Consultancy
£15,317,092
£20,260,714
£78,671,992
£44,136,007
£29,344,628
Programme and Project Management
£20,579,670
£23,118,978
£24,323,086
£18,192,186
£4,407,693
Research & Development
£9,032,254
£9,751,623
£18,113,871
£20,190,046
£33,450,349
Specialist Consultancy
£39,942,837
£39,828,357
£36,312,208
£36,646,432
£53,732,059
Temp Staff
£10,536,838
£9,383,419
£9,623,459
£9,890,898
£6,665,696

Grand Total
£140,840,492
£155,148,860
£266,299,141
£259,993,267
£290,430,167


  The increase in Professional Services expenditure can be attributed to a number of factors:

    (a)  In October 2004 Defra outsourced the provision of its Information Technology services. This resulted in a substantial increase in Defra's expenditure in the IT and Telecommunications category because of the expenditure aggregation and re-categorisation.

    (b)  In 2005 as part of Defra's category management strategy underpinning the Gershon agenda, the Department undertook a detailed analysis of expenditure on Professional Services.

    This exercise has resulted in a revised classification of Defra's expenditure. This has enabled the Department to develop and implement a more rigorous and appropriate strategy for the Professional Services expenditure category. This strategy includes:

      —  letting Multi-Commodity Frameworks (framework agreements within an overarching category of expenditure). For example, there will be frameworks for Management & Business Consultancy, Project & Programme Management and Finance & Audit Interims. These will:

        —  maximise Defra's purchasing power;

        —  introduce standard Defra rate cards;

        —  facilitate improved contract management and benefits realisation; and

        —  deliver improved value for money, including a heavy emphasis on payment and incentivisation mechanisms:

      —  improved governance and control on Professional Services expenditure, including:

        —  implementation in September 2007 of a Professional Services Commissioning Process which mandates Management Board approval on all Professional Services expenditure over £93,738 and any non competitive procurements in this category;

        —  implementation in August 2007 of a Human Resources Recruitment Policy which covers the procurement of interims and consultants. This intends to strengthen the current controls by mandating that Defra fully utilises its Redeployment Register and Internal Trawl data before trying to fill vacant positions externally by using a consultant or interim resource. Any decision to fill vacant positions using external resources must be fully justified to and authorised by the appropriate management. In summation the Department needs to be very clear that skills or expertise that it is "buying in" do not already exist in the organisation.

    (c)  The guiding criterion has been and remains value for money from the use of consultants and professional services where it is appropriate and necessary to utilise them as an alternative to building in-house capacity in supporting the Department's strategies and objectives together with front line services.

    This approach has been reinforced by Sir John Bourn, head of the National Audit Office who said:

    "Consultants can perform a vital role in delivering public services, providing skills which may be lacking in the public sector and helping to bring about improvements which may otherwise have been unattainable."

    (d)  The Renew Defra Programme, which was launched earlier this year, is an ambitious departmental change programme that aims to transform the way Defra operates. It will create a department where people and resources can be moved quickly and flexibly and work is undertaken more collaboratively and efficiently. One of the key aims of the programme is to use Defra's internal resources more efficiently and effectively thereby reducing the Department's reliance and expenditure on external professional services.

8.  What are you doing to improve skills within Defra so that your dependence on consultants reduces?

  The results of work underway as part of the Our Way workstream of the Renew programme will lead to increased flexible deployment of Defra staff across the organisation. This will enable managers to draw more easily on available resource both for short notice work and discrete short term projects and therefore reduce the need to engage temps and contractors in cases where Defra staff can and should be used.

  There are also currently tighter controls on engaging consultants via a moratorium on spend, with exceptions being assessed on a case by case basis, as well as recent Treasury guidance to increase visibility of such spend by charging consultancy costs in many situations to administration budgets rather than programme budgets.

  Tighter control on projects being undertaken across the department via Portfolio Management including the need for detailed business cases will help challenge and validate the approach being taken to resource activities before resources are released.

  There will be a place for consultants in relevant situations where they bring expertise or specialist knowledge but it will be important to try and ensure that there is appropriate knowledge transfer to Defra teams during projects to build capability of our teams.

9.  How often do you require consultants to transfer skills to Defra staff as part of their contract so as to reduce the need to employ consultants in the future?

    a)  Defra recognises that knowledge transfer is a two-way process and needs to engage with its professional services providers actively to ensure that its internal members of staff develop their skills when working with consultants.

    b)  To ensure effective knowledge transfer between external professional services resources and Defra employees, the Central Procurement Group has:

    —  incorporated Defra's approach to knowledge transfer within the specifications used when tendering for Professional Services Frameworks;

    —  worked with tenderers to establish their views and experience of effective knowledge transfer. This information is helping Procurement to develop a process to manage effective knowledge transfer which is workable for both parties; and

    —  decided to include advice and guidance in the Framework Agreement user guides on how to facilitate effective knowledge transfer when using external Professional Services. This will include relevant Key Performance Indicators and specific tools and techniques that can be used.

PSA TARGET 3: SSSI

    Public Service Agreement target 3b: Sites of Special Scientific Interest

    Care for our natural heritage, make the countryside attractive and enjoyable for all and preserve biological diversity by bringing into favourable condition 95% of all nationally important wildlife sites by 2010.

  Page 53 of the DAR says that Natural England has developed a new SSSI information database (ENSIS) which will aid achievement of the target. The new system will facilitate the "production of timetabled delivery programmes" and will help to ensure that the action needed to bring SSSI land into target condition is "properly planned". However, the DAR does not give indication of the performance of the database.

10.  What testing and trialling has been carried out on the ENSIS database?

  Natural England's ENSIS database is used to maintain information on the ecological condition of Sites of Special Scientific Interest (SSSIs) in England. It includes data on species and habitats, management information and assessments of condition.

  Each SSSI is subdivided into one or more units for the purpose of management and reporting. Natural England has assessed the condition of all 22,000 of these SSSI units and for those in unfavourable condition has identified the reasons and the actions needed to bring them into a favourable or recovering condition (these actions are termed remedies). A remedy comprises the mechanism that is required to deliver favourable or recovering condition, the organisation(s) responsible for carrying out the necessary action, and a date for implementation. ENSIS was expanded in 2005 to capture remedy information and record progress against delivery—this subsection of ENSIS is known as the Remedies Database.

  The Remedies Database was developed to co-ordinate work between the public bodies, commercial statutory undertakers and voluntary bodies which manage and regulate activities on SSSIs. Natural England carried out trialling of the Remedies Database over a three month period in 2005, with the help of the Environment Agency, the Ministry of Defence, the National Trust and the RSPB. This trial led to a number of improvements, which were put into effect before the system was launched. The "roll out" of the live database also involved detailed discussions and testing with partner organisations to make sure that the remedies reflected the partners' current operational practices. These remedies are kept under continuous review and are updated when necessary.

  Delivery partners access remedies data through a secure gateway to ENSIS, and provide feedback in the form of agreeing the proposed remedies or by making suggestions as to more appropriate remedy mechanisms or responsible organisations. This in itself is a key method of validation, as partners are able to confirm that the data held in relation to their organisation is correct. In total, 259 separate organisations have identified remedies and there are 340 users registered to access the Remedies Database.

  The system has now been in operation for two years and confidence in its integrity is high. Natural England runs monthly validation reports on the ENSIS database and it is designed with various inbuilt checks to prevent incorrect data being entered. Data from the Remedies Database are also regularly reviewed by the key stakeholder group for the SSSI target—the Major Landowners Group.

PSA TARGET 6: WASTE AND RECYCLING (DAR, P 40-42)

    Public Service Agreement target 6: Waste and recycling

    To enable at least 25% of household waste to be recycled or composted by 2005-06, with further improvement by 2008.

  Page 42 of the Departmental Report says that Defra paid out £105 million to local authorities in 2006-07 under the Waste Performance and Efficiency Grant (WPEG) programme. A further £110 million will be provided during 2007-08 and will be administered by the Department for Communities and Local Government as part of its Local Area Agreement (LAA) fund.

  In its response to the Committee's preliminary written questions (Annex, Q 5), the Department says that the WPEG grant is unringfenced in accordance with the Government's policy of giving local authorities freedoms and flexibilities.

11.  How can the Department be certain that the unringfenced WPEG funding to local authorities is not diverted elsewhere, thus having a negative impact on PSA Target 6?

  Defra worked closely with the National Audit Office to develop an evidence base to provide information about the levels of Waste Performance and Efficiency Grant funding allocated to waste-related projects in 2006-07. Information was sought on a voluntary basis from the 25 local authorities that received the largest allocations, covering 26% of total funding. The responses from local authorities indicated that around 95% of the funding allocated was assigned to waste projects. Some funding was allocated to waste projects but not used in the period and it has been carried forward by those authorities for use in 2007-08. A high proportion of spend on waste for an unringfenced grant is an indication of the importance which local authorities attach to moving management of waste up the waste hierarchy.

  For 2007-08, Waste Performance and Efficiency Grant has been allocated to local authorities through Local Area Agreements (LAAs). Inclusion of mandatory waste outcomes in LAAs gives Government a clear basis on which to assess the performance of local authorities in relation to waste. As with other LAA funding, WPEG is unringfenced within the parameters of the LAA and it is therefore for local government to decide how to invest to achieve their negotiated outcomes.

NEW PUBLIC SERVICE AGREEMENT (PSA) TARGETS FOR THE CSR 07 PERIOD

12.  How will you ensure that the indicators for the two new proposed PSA targets will be measurable and specific, as opposed to some of the current PSA targets?

13.  Both PSAs will be delivered by a number of Government departments, with Defra taking the lead. How will this work in practice?

  The PSAs focus on a cross-Government set of high-level strategic priorities, which are shared by several Departments. Each PSA will be assigned a specific Cabinet sub-committee, which will act as necessary to resolve questions relating to that PSA and which cut across interdepartmental boundaries. All departments will be responsible for reporting on their contribution and will, therefore, have a stake in making this system work effectively.

  Making indicators for the new PSAs measurable and specific is a key aim of the whole CSR. The specific intention of the guidance for the new CSR is that indicators should be more outcome-focused, specific, measurable, and accurate enough to enable decision making. The indicators that we have proposed for the two PSAs led by Defra will conform to these criteria.

  On cross-departmental governance, we understand that central guidance will shortly be published on reporting and monitoring arrangements. A six month reporting cycle for PSAs is envisaged, with one self-assessment per PSA provided by the lead department, covering progress against the indicators and other key elements of the delivery agreement. The lead department will then be responsible for securing contributions from other government departments to the PSA report.

  In the case of Defra, we will expect representatives (at an appropriate senior level) of the formal delivery partners for the PSAs which we lead, to sit on the relevant programme board. They will be expected to provide us with returns on their contribution to the delivery of the PSA when we report to the Treasury every six months.

ANIMAL HEALTH AND WELFARE

Pet Fairs

  The Government has declared its intention to produce regulations prohibiting the sale of animals in the course of business to members of the public at pet fairs by 2008.

14.  What consultation has been held by Defra on the legality of pet fairs?

  A 2006 Judicial Review found that a decision by a local authority to issue an organiser of a pet fair with a licence made under the Pet Animals Act 1951 (the 1951 Act) was incorrect. This was because a pet fair was considered to be a collection of stalls in a market and even if a licence could be issued, each stallholder would need to be licensed rather than just the organiser.

  The Judicial Review therefore clarified that licences made under the 1951 Act could not be issued to organisers of pet fairs.

  The 1951 Act is only concerned with those people in the business of selling animals and not hobbyists. So, a pet fair that includes the selling of animals by hobbyists only, can continue to do so without the need for a licence.

  The Government proposes to launch a consultation on draft pet vending regulations to replace the 1951 Act by the end of this year.

  We propose to maintain the ban on commercial pet fairs, although with exemptions in respect of commercial koi carp shows, racing pigeon shows and poultry shows because the hobbies rely heavily on commercial vendors and there have been little or no reports of poor welfare at these shows.

15.  Is Defra on track to produce new regulations for pet fairs by 2008?

  The Government proposes to bring into force regulations to replace the existing Pet Animals Act 1951 in October 2008. A wide consultation will commence by the end of this year.

Circuses and performing animals

  The Government has declared its intention to produce draft regulations on wild animals in circuses for public consultation by 2008.

  The Government has proposed that trainers of performing animals should be licensed and that premises where animals are housed, trained or perform should be subject to inspection. The Government intends to consult on this proposal but no timetable has been set.

16.  Has the Circus Working Group reported its findings to Defra ministers yet? When will the draft regulations on the use of wild animals in circuses be available for public consultation?

  Due in part to the indisposition of the Chair of the Circus Working Group, there has been a further delay in the submission of the report on wild animal acts in circuses to Defra Ministers. We anticipate that the report will be published soon after recess and Ministers will want to reflect on the contents before any decisions are reached. It is not yet possible to advise the committee on how or when the regulation of wild animal acts in circuses, including any public consultation, will be progressed.

17.  What is your timetable for the introduction of regulations on the licensing of performing animals?

  The timetabling for secondary legislation was changed during the passage of the Animal Welfare Bill through Parliament because of different priorities expressed by Parliamentarians. Priority is now being given to wild animals in circuses, pet vending, game bird rearing and greyhound racing. As a result, it is no longer possible to offer a commitment concerning the timing of regulations on performing animals. Nevertheless, we recognise that there is a need for the legislation relating to performing animals to be overhauled.

  In the meantime, PAWSI (Performing Animal Welfare Standards International), which currently acts as a voluntary industry regulator, is continuing to make significant progress in raising welfare standards for animals used in all types of performance. This has included setting standards and accreditation of skills, including a NVQ scheme for animal trainers and suppliers. The work being done by PAWSI, which has received widespread backing from the audio-visual industry, indicates that there is considerable scope for self-regulation within the industry, which we regard as preferable to Government intervention.

DISEASE PREPAREDNESS

  Pages 97-98 of the DAR outline Defra's animal disease preparedness policies. It says Defra has contributed £30 million over three years towards the global effort to tackle avian flu at sources and prepare for a possible pandemic. Defra has a planned 2007-08 allocation of £156.1 million towards the cost of eradication of BSE. In addition, Defra has a planned allocation of £97 million in 2007-08 and 2008-09 towards control and research for Bovine TB. Of that, £18.8 million has been earmarked for research.

  In June 2006, there was a re-emergence of the bluetongue virus in Germany.[19]

18.  Which potential disease risks has the executive agency Animal Health identified in the near-term future? To what extent is the Bluetongue virus considered a threat to the UK?

  As the current outbreak of Foot and Mouth Disease illustrates, incidents of exotic notifiable disease are largely unpredictable. Disease prevention and contingency planning are therefore generic in order to recognise a wide range of threats.

  Aside from the current Foot and Mouth outbreak, of greatest concern at present are:

    —  highly pathogenic avian influenza which is present on the continent and which could be brought to GB through uncontrollable wild bird migration.

    —  Newcastle Disease which could also be introduced to poultry flocks from wild birds. This risk is lower because commercial poultry are routinely vaccinated.

    —  Bluetongue. See below.

    —  Exotic diseases of pigs—classical swine fever, African swine fever, swine vesicular disease. These are all present within the EU and are relatively easy to transmit, particularly through illegal feeding of waste food.

    —  Foot and Mouth Disease is still widespread in Africa, Asia and South America and new strains emerge.

  In addition, Defra closely monitors and assesses the risk to the UK of global outbreaks of high impact animal diseases (such as Foot and Mouth Disease, classical and African swine fevers, African horse sickness, sheep and goat pox, Rift Valley fever; peste des petits ruminants and lumpy skin disease). It considers various routes (including legal and illegal trade, natural factors, and mechanical transmission) by which diseases could potentially be introduced to the UK.

  Defra and Animal Health also regularly review disease control strategies and contingency plans as a matter of course, in order to be fully prepared for any potential disease incursion.

  Further information can be found on the Defra website:

  International Disease Monitoring

  http://www.defra.gov.uk/animalh/diseases/monitoring/index.htm

  Notifiable Diseases

  http://www.defra.gov.uk/animalh/diseases/notifiable/index.htm

  There have been a number of recently reported cases of Bluetongue serotype 8 (BTV8) in north-west Europe (Belgium, The Netherlands, Luxembourg, parts of western Germany and parts of north-eastern France). The emerging epidemiological evidence demonstrates that the BTV8 has successfully over-wintered in the areas that have been affected last year. It is now also spreading into adjacent areas not previously known to be affected. In addition, other strains of bluetongue are present in Southern Europe.

  Imports of live animals from infected areas are not permitted. Animals that transit through bluetongue restricted zones are treated with insecticides. All susceptible livestock imported from the continent are restricted until they have given a negative result to post-import testing.

  Infected midge vectors may be blown across the sea to Eastern England. This possibility is kept under constant review with the help of a meteorological model but cannot be predicted with certainty. Defra continues to monitor and review developments.

[18b] The Government has recently announced proposals to allow the farming sector greater input into future animal disease and prevention policies, in exchange for the sector sharing some of the costs of these policies.[20] How do you anticipate animal disease control and prevention will be funded in the future? What role do you envisage the farming sector will have in the development of the animal disease policies?

  We are looking to establish shared responsibility for animal health and welfare policy, controls and costs, partly by building on increasingly productive partnership working experience. This will involve a shift in the funding balance away from the tax payer to those benefiting directly from the disease control regime. It should also result in cost effective, practicable solutions in relation to disease prevention and control. Ideally, the mechanisms used to generate revenue for this purpose will be designed to encourage behaviours addressing risk, while discouraging risky behaviour.

  The Department is working closely with industry to develop proposals, principally through the work of the UK Consultative Forum; this body is tasked with representing the interests of the entire food chain, and consists of representatives of the main farming unions and departmental officials from across the UK. Following consultation on the principles of responsibility and cost sharing we intend to launch further public consultations over the next year. Working with the industry in this way will establish the basis on which we will look to establish clear roles and responsibilities on animal health and welfare, policies, controls and funding.

BIOENERGY

  The Government Response to the Committee's Report "Climate change: the role of bioenergy" stated that the outcome of work examining the potential support mechanisms for renewable heat would be reported in the UK Biomass Strategy. However, the UK Biomass Strategy (May 2007) only reports that Ernst & Young has been commissioned to examine "the initial business case on support for renewable heat".

19.  What progress is being made to develop appropriate support mechanisms for biomass heat?

  As stated in the Energy White Paper published earlier this year, the Government is committed to reducing carbon dioxide emissions from heat across all sectors through a variety of methods including the encouragement of renewable energy technologies for heating. Amongst these technologies, biomass heat plays a key role. Since publication of the White Paper several Government Departments, including Defra and BERR, have been working together to examine the case for support for several renewable energy technologies, including biomass heat, and if necessary to develop options for that support. Officials are due to report to Ministers later this year.

[19b] The Biomass Taskforce reported in October 2005. Why, nearly two years later, is the Government still "continuing to develop its thinking in this area" (Energy White Paper)?

  The Government has produced a Biomass Strategy, which was published alongside the Energy White Paper earlier this year. The Strategy identifies biomass heating as the most cost efficient use for this fuel and provides a framework for the development of biomass.

  The Government believes it is essential to consider the heat sector holistically and is carrying out further work into the case for supporting renewable heat technologies including biomass heat and, if necessary, into developing options to provide that support. This work is considering the potential for low carbon heating across the economy at all scales from domestic to large-scale industrial use and exploring options to encourage the uptake of renewable technologies further, including biomass-related technologies, building on the work set out in the Biomass Strategy and the 2007 Energy White Paper. Officials are due to report to Ministers later this year.

Department for Environment, Food and Rural Affairs

September 2007






18   Not printed Back

19   "Fears of Bluetongue virus hitting the UK this year are heightened", Farmers Guardian, 29 June 2007 Back

20   "Rooker's u-turn gives industry a voice on disease control", Aberdeen Press & Journal, 3 July 2007, p 20 Back


 
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