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Common Fisheries Policy Review Group Report: Response

Lord Broughham and Vaux asked Her Majesty's Government:

Lord Lucas: The Government have carried out consultations on the report issued by the Common Fisheries Policy Review Group in July. The results of the consultation have been taken into account in preparing the government response, which is being placed in the Library today.

We are very grateful to the members of the group for all the work that they put into preparing a thorough and wide-ranging document. The group's overall conclusion was that the common fisheries policy has failings but that UK withdrawal would not address the fundamental problems facing the fishing industry. Where changes are needed, the common fisheries policy should therefore be improved from within. The Government agree with this approach as representing the only practicable way forward.

Forty specific recommendations are included in the group's report. The Government's response covers each of these in turn.

Intervention Board Executive Agency: Corporate Plan

Lord Brougham and Vaux asked Her Majesty's Government:

Lord Lucas: The Corporate Plan 1996-97 to 2000-01 has been published, and copies have been placed in the Libraries of both Houses.

Rendering Industry: Support Arrangements

Lord Brougham and Vaux asked Her Majesty's Government:

Lord Lucas: My right honourable friend the Minister of Agriculture, Fisheries and Food announced in April that the Government would be providing temporary financial support to the rendering industry of up to £118 million this financial year. Since then we have made payments of about £59 million on account pending final decisions on the form of this support. We have met our objective of ensuring through this support that the essential links in the meat supply chain are maintained.

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My right honourable friend has now announced that the Government have finalised support arrangements for 1996-97. These take the form of a non-statutory scheme, and follow detailed consultation with representatives of the rendering industry. Copies of the scheme and the agreement which companies receiving support will have to sign are being placed in the Library of the House.

As with the payments on account, support will be based on renderers' loss of income by comparison with 1995-96. However, support will be adjusted to take broad account of renderers' actual levels of throughput and costs this year. We have ensured in particular that the rendering industry does not receive support under this scheme in respect of material being processed under the Over Thirty Month Scheme. In devising the detailed arrangements we have sought to strike a fair balance between the interests of renderers and the taxpayer, and between different renderers.

Any differences between payments on account and entitlement under the scheme will be made up through adjustments to payments under the scheme. Depending on the level of sales income and throughput in the remainder of the year, the final scheme is expected to cost the taxpayer in the region of £100 million to £110 million.

As a condition of receiving support, rendering companies will continue to be required to maintain their prices and charges to their suppliers at the levels applying before 20th March 1996.

In order to assist them in devising support arrangements for the rendering industry, the Government engaged the services of Coopers & Lybrand. Their report to the Government on the rendering industry will be published and copies will be placed in the Library of the House.

We have announced that up to a further £59 million support to the disposal chain will be available in 1997-98 as slaughterers and renderers adjust to the changed value of animal by-products. We are now opening discussions with these industries about what form this support should take.

Sheep Scab Control: Consultation

The Countess of Mar asked Her Majesty's Government:

    What was the outcome of the public consultation on control of sheep scab.

Lord Lucas: We received a positive reaction to the proposals for new legislation to help farmers control the spread of sheep scab, which were issued for consultation in December 1995.

Following comments, our original proposal making it a criminal offence to sell affected animals will be replaced with one making it a criminal offence to move affected animals, except to slaughter. In addition, we propose to make the provisions to deal with sheep scab on commons more flexible. We will proceed with our

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plans to make failure to treat affected sheep a criminal offence.

We will now circulate our updated proposals, and invite further comments on the draft regulations which we are currently preparing. We expect the new legislation to come into effect in late spring or early summer 1997.

Farm Woodland Premium Scheme

Lord Skelmersdale asked Her Majesty's Government:

    What has been the outcome of the consultation on proposed changes to the Farm Woodland Premium Scheme and whether any conclusions have yet been reached on payment rates.

Lord Lucas: A wide range of organisations were consulted on the proposed changes to the FWPS announced to Parliament on 24th July (Official Report, col. 624). Most organisations welcomed the proposed changes, though there were a number of different, often conflicting, views. In light of the consultation we will be making some minor modifications to our original proposals and a Statutory Instrument will be laid before Parliament early next year. Subject to approval by

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Parliament and the European Commission, it is intended that most of the proposals will be implemented with effect from 1st April 1997. A list of the changes is being placed in the Library of the House.

The rates of payment to apply from 1st April 1996 will be as follows:

FWPSFWS
£/hectare/year£/hectare/year
Land eligible for Arable Area payments
Outside of the Less Favoured Areas300230
Disadvantaged Areas of the Less Favoured Areas (DA)230180
Severely Disadvantaged Areas of the Less Favoured Areas (SDA)160120
Other Cropped Land and Improved Grassland
Outside of the Less Favoured Areas260200
DA200160
SDA140110
Unimproved Land
Less Favoured Areas6030

Notes:

Where land is to count against the farmer's set-aside obligation, the payment rate will be restricted to the set-aside rate.

The FWS was closed to new applicants in 1992.


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