Thursday, September 14, 2006

Compensation - all change again?

Compensation for animal diseases is set to change dramatically as of January 1st 2007 - and as far as we can see, there is little the UK government can do about it, even if it wanted to.

Out to tender from Sept. 8th, but with a closing date of September 17th, is the following 'consultation paper', which has been forwarded by the moderators of www.warmwell.com

Proposed EC changes to slaughter compensation
Defra has informed participants at their recent FMD, CSF and Avian Influenza Stakeholder meetings that the EC is proposing changes to the state aids regulations for agriculture. We urge you to read and discuss with others these proposed changes as they would appear to have serious consequences for livestock keepers and could constitute an unacceptable disincentive to reporting of suspicious signs.

Note that the consultation deadline is 17 September 2006, and that the changes are currently due to come into force on 1 January 2007 . This matter deserves wide public dissemination.

Please do send your comments directly to the EC at the address below (email: Agri-State-Aids@ec.europa.eu), and we invite you to comment and discuss these issues on our CA Forum and include your submission to the EC if you wish. We also invite comments on the role of Member States.
According to Defra: “State aid is Commission competence. This means that the Commission has been given the power by Member States to decide which forms of aid are to be allowed and under which conditions. There are therefore no negotiations or vote on these issues – the Commission will decide having listened to the views of the Member States and those with an interest.”

Extracts from a Defra email to stakeholders dated 8 September 2006: “We have just been made aware that they are holding a public consultation period which ends on the 17 September. Comments can be sent to the following address/fax/email. European Commission Directorate General for Agriculture, Unit H.2, Office Loi 130 05/126, B-1049 Brussels, Fax (32-2) 296 76 72, E-mail: Agri-State-Aids@ec.europa.eu
These changes are currently due to come into force on 1 January 2006 [correction: 1 January 2007] and would have the following implications:

* Limit aid to small and medium-sized enterprises (SMEs);
* Limit compensation payments for animals
slaughtered to 75% of their market value (80% in less favoured areas (LFAs)
* Limit compensation for animals slaughtered to
outbreaks of disease which result in a 30% production loss on the holding concerned.

Article 10 contains the relevant information on 'Aid in respect of animal and plant diseases and pest infestations'.”

The briefing document sent by Defra is available on the CA Forum at :
http://www.fmd-and-csf-action.org/forums/csf/post200609049339214573
Extracts from this document: "As the Community Animal Health Policy is currently under review we are questioning whether it is appropriate to introduce quickly a temporary new policy at this moment in time. State aid is Commission competence. This means that the Commission has been given the power by Member States to decide which forms of aid are to be allowed and under which conditions. There are therefore no negotiations or vote on these issues – the Commission will decide having listened to the views of the Member States and those with an interest. The Commission is likely to launch a public consultation on the Block Exemption Regulation shortly. There will then be a further consultation of the Member States in the autumn. We have previously circulated the links to the relevant documents, but they are attached again for ease. The Block Exemption Regulation can be found on the Commission website at: http://www.europa.eu.int/comm/agriculture/stateaid/
exemption/commprop_en.pdf

The Article 10 on page 14 is the relevant section. The proposed revised guidelines are also attached, the animal diseases section begins at paragraph 121 on page 30.” The document with the proposed revised guidelines that Defra sent to stakeholders has only 24 pages, so we ask Defra to please post this information with the correct page and paragraph reference on the Defra website.
From: Mary Marshall, Member, Defra’s FMD, CSF and Avian Influenza stakeholder groups

The extent to which the UK has lost control - or rather its elected representatives have given or bartered it away - is quite clear, when this 'consultation' is taken in the context of previous EU legislation already in statute.

We understand that new guidelines, described as "the strengthened partnership with national parliaments", were announced by the Commission on May 10th, and endorsed by EU at the June summit. From September 11th. 2006, all the Commission's new legislative proposals and consultation papers will be sent by e-mail, to national parliaments for 'comment'.

But this 'partnership' is in name only, in that national parliaments and their elected MPs, have the right to receive the Commission proposals directly, but not the formal right to oppose them.

Margot Wallstrom, Vice-President of the European Commission is quoted as saying" A greater voice for Parliaments is a greater voice for Europe's citizens". Which is all well and good, but does not mean that the commission is under any obligation whatsoever to follow up on any 'opinions and comments' which it receives. As the Commisssion says " The procedure does not change existing legislative procedures forseen by the Treaties".

For more on the background to how our decision making process has been culled, see our sister site; http://www.eureferendum.blogspot.com/#115827296907923081


So dear old Defra in a spin over this, we understand. They seem unable or unaware of just how to operate the EU's instructions on animal compensation due to be introduced on January 1st 2007, and are presently trying to interpret how the key elements which will affect UK farmers. In particular how they define:

* Limit aid to small and medium-sized enterprises (SMEs)
* Limit compensation payments for animals slaughtered to 75% of the market value (80% in less favoured areas (LFAs)
* Limit compensation for animals slaughtered to outbreaks of disease which result in a 30% production loss on the holding concerned
.

And they have just one week in which to - say anything at all to the Commission, having presumably agreed to this procedure at the June summit. How this will pan out with Tb compensation is anybody's guess. Defra haven't a clue, so why should we?

So from a professional 'valuation' procedure, we have been shafted onto a 'one size fits none' tabular chart - with little chance of obtaining insurance to prop up pedigree values. And now our lords and masters in Brussels are preparing to ratchet 'values' down again. From what we can see in some instances, to perhaps nothing at all. And all in a year..........

This is not helpful in the due process of disease control. For that, full co operation with the owners of affected livestock is crucial. If they feel that they cannot 'afford' to report a suspect animal, then they will not. Long term, that has huge implications for any disease control programme - particularly zoonoses like tuberculosis. Perhaps we should have entitled this posting 'Cheques and Balances'. More in Farmers Guardian today.

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