Memoranda from the Department for Environment,
Food and Rural Affairs
2003 (S.I. 2003/545)
REGULATIONS 2003 (S.I. 2003/546)
1. These two Statutory Instruments were made on 6th
March 2003. The Feedingstuffs (Zootechnical Products) (Amendment)
Regulations 2003 ("the Zootechnical Regulations") will
come into force on Thursday 1st May 2003, with regulation 3 coming
into force on Monday 31st March 2003; and the Medicated Feedingstuffs
(Amendment) (Scotland, England and Wales) Regulations 2003 ("the
Medicated Feedingstuffs Regulations") will also come into
force on Monday 31st March 2003.
2. The purpose of this Memorandum is to explain the
increase in fees which the two SI's bring into effect.
3. Zootechnical feed additives and veterinary medicinal
products are potent substances which must be correctly mixed in
animal feed. If not used properly in the production and preparation
of feedingstuffs, there are risks to the treated animals, and,
through excess residues, to the consumer. Regular inspection minimises
the risks to animals, consumers and to the environment from poor
hygiene or incomplete or inaccurate mixing of animal feed. EC
legislation requires all manufacturers of animal feedingstuffs
incorporating veterinary medicines or zootechnical feed additives
(antibiotic growth promoters and coccidiostats) to register and
be inspected to ensure compliance with certain requirements.
4. In Great Britain the AMI (Animal Medicines Inspectorate)
of the RPSGB (Royal Pharmaceutical Society of Great Britain) carries
out these registration and inspection functions. (In Northern
Ireland these functions are the responsibility of the Department
of Agriculture and Rural Development for Northern Ireland.)
5. EC law has required increased level of inspections
and other official checks, while the number of feed manufacturing
premises registering with the AMI has declined from nearly 7,000
in 1989 to just over 1,800, with a reduction of 634 (26%) in premises
registering in the last year. The geographical coverage required
of the Inspectorate has remained fixed.
6. The AMI seeks to recover its operating costs through
charging registration fees to those it inspects, approves and
in respect of which it carries out other official checks. Fees
it charges to feed manufacturers are set down in the two sets
of Regulations which are amended by the above instruments.
7. There are difficulties in funding a relatively
small inspectorate to cover a diminishing number of premises over
a fixed geographical area. Although the AMI's overall running
costs are expected to fall from £330,000 for 2002/3 to £274,700
for 2003/4, as the number of registered premises has declined
each year, there are fewer businesses paying to support the regulatory
regime. If fees were kept at current levels, the absolute reduction
in income caused by the reduced number of registrations would
mean that costs would exceed income from fees by about £80,000.
8. To avoid a shortfall between income and costs,
and to allow the current standard of enforcement to be maintained,
fees are being increased. This reflects the fact that those remaining
on the register are each having to bear an increasing share of
the AMI's costs. However, in recognition of the financial difficulties
facing the farming industry it was agreed that 50% of the increase
in fees for 2002/03 and 25% of the increase in fees for 2003/04
would be directly funded by Government to mitigate the burden
on feed manufacturers.
9. The increases have been consulted upon, with consultees
recognising the quality of service the AMI provides in performing
its statutory duties, although generally being unhappy with the
increased financial burden on individual feed manufacturers. Concerns
of consultees as to the level of fees have been anticipated by
the continuing financial support from Government to meet 25% of
the increase from public funds. Other policy options for rationalising
the structure of the regulatory and voluntary regimes are also
being explored with industry.
7 March 2003
REGULATIONS 2003 (S.I. 2003/752)
1. This Statutory Instrument was made on 17th March
2003 and will come into force on Monday 31st March 2003.
2. The purpose of this Memorandum is to explain the
breach of the 21 day rule.
Background: correction of drafting error in citation
3. This Statutory Instrument revokes and replaces
in almost identical terms the Medicated Feedingstuffs (Amendment)
Regulations 2003 which were made on 6th March 2003 with a commencement
date of 31st March 2003 (SI 2003/546).
4. Unfortunately, a drafting error crept into regulation
1 ("Title, commencement and extent") in the instrument
made on 6th March 2003, in that the intended reference in parentheses
to "Scotland, England and Wales" was omitted in the
citation, although not in the heading to the SI. Since the heading
is not operative, the citation has had to be corrected
hence the revocation and replacement by the current instrument
of the previous one, which the Department is seeking authority
not to print.
5. This Statutory Instrument deals with fees in tandem
with an associated instrument, the Feedingstuffs (Zootechnical
Products) (Amendment) Regulations 2003 (SI 2003/545), which comes
into force on 31st March and which also raises fees, in an associated
sector of the animal feed industry. The two instruments cross
refer to each other. The crossreference in the associated
instrument is to the intended title of these Regulations, thus
mentioning an instrument which, it turns out, did not exist at
the time. Consequential provision is therefore added to treat
the crossreferencing henceforth as a reference to these
6. Both sets of fee increases must be in force by
31st March 2003 to conform to the existing structure of annual
charging in connection with implementing the EC regime which controls
the manufacture of animal medicated feed and feedingstuffs containing
7. Accordingly, so that the new fees may be effective
on 31st March 2003, and both the associated Statutory Instruments
can crossrefer correctly, the Department has been obliged
to lay the Statutory Instrument less than 21 days before its commencement.
We apologise to the Committee and both Houses for the breach of
the rule, and trust that in the circumstances it will accept this
as the most sensible course to remedy a drafting oversight.
8. As to the substance of the Statutory Instrument
(insofar as it deals with fees increases), we refer the Committee
to the Voluntary Memorandum of 7th March 2003 (copy attached for
reference) for the explanation for the fee increases, the provisions
of the present Statutory Instrument as to fees increases being
the same as the Statutory Instrument which it revokes.
17 March 2003