Question
By how much he plans to reduce BSE compensation payments; and what assessment he has made of the effect of this proposal on farmers who rear late developing store cattle.
Answer
Mr. Swayne: To ask the Minister of Agriculture, Fisheries and Food by how much he plans to reduce BSE compensation payments; and what assessment he has made of the effect of this proposal on farmers who rear late developing store cattle. [7321] Mr. Rooker: The European Commission, with the support of the Government, has decided with effect from 4 August to reduce Over Thirty Months Scheme (OTMS) compensation payments for cull cows from 0.9 ECU (around 65p) per kilogram to 0.8 ECU (around 58p) per kilogram liveweight. Compensation payments for all other cattle, including clean cattle, remain at 0.9 ECU per kilogram. Compensation for all OTMS cattle will be subject to a limit of 560 kilograms per animal. Clean cattle (including the late developing store cattle to which the hon. Member refers) will be the principal animals affected by this limit as these tend to be slaughtered at weights above 560 kilograms. However, we believe that farmers should be looking to finish their clean cattle at under 30 months of age and thus to sell them onto the market rather than into the OTMS. The Beef Assurance Scheme nevertheless provides an outlet for clean cattle from low risk, late maturing herds to be finished and sold at up to 42 months of age.