Memorandum by the Ministry of Agriculture, Fisheries and Food
1998 (S.I. 1998/1647)
1. The Committee considered the
above instrument at its meeting on 21 July 1998 and has requested
a memorandum on the following point:
Article 3(2) prescribes
the compensation payable where the slaughtered animal is not
confirmed to have been affected by the disease as being the greater
Explain the circumstances
which are contemplated for taking the average cull price and why
it would not suffice to take only the market value.
2. The Ministry was asked to provide
the memorandum by 28 July; the Committee has granted the Ministry
an extension of time to enable reasonable consultation on the
memorandum with the Scottish Office.
3. Where disease is not confirmed
the market value can be used when the owner has evidence of the
value of the animal (such as an insurance certificate, a valuation
certificate or a recent bill of sale) if that is greater than
the average cull price. However, apart from valuable breeding
stock, it is known that in the majority of cases the owner will
not have such evidence available. Given the complicated and diverse
breed structure of the UK industry, it would be an inappropriate
use of public funds to value such animals since the cost of valuing
an animal for which the owner does not have evidence of market
value would far exceed its value. For such animals it was considered
simpler to have a rate of compensation which remains constant
for at least one month in line with compensation arrangements
for other diseases, the average cull price.
4. The Minister determines the average
cull price for sheep on the basis of the average monthly prices
at auction for cull ewes, as published by the Meat and Livestock
Commission in its weekly UK Market Survey. A GB weighted average
cull price for sheep is determined on the basis of these prices
published for England and Wales, and for Scotland. For August
1998 the average cull price payable as compensation is £25.34p.
5. This memorandum has been agreed
with the Scottish Office.
17th August 1998