Question
To ask the Minister of Agriculture, Fisheries and Food, what is (a) the maximum permissible and (b) the actual or anticipated total of agrimonetary compensatory amounts paid out in 1997-98 and 1998-99. - Inc table.
Answer
Mr. Gill: To ask the Minister of Agriculture, Fisheries and Food what is (a) the maximum permissible and (b) the actual or anticipated total of agrimonetary compensatory amounts paid out in 1997-98 and 1998-99. [55945] Mr. Rooker: It is not possible to split the agrimonetary compensatory amounts into periods as specified in the question. The total amount that was available to the UK over the period in question is around £958 million, half of which could be reclaimed from the EU budget. This is broken down in the table. The bulk of this compensation was generated by green pound revaluations in 1997. On 18 December 1997 we announced our intention to access some £85 million of this aid. Payment of this compensation has now been made, with £72.5 million of the aid resulting from the four revaluations of 1997 being paid to suckler cow producers, and £12.5 million being paid to sheep producers to compensate for the drop in their 1998 SAPS payments. This aid has provided substantial additional assistance to the livestock sector. As we indicated at the time, it was an exceptional response to exceptional circumstances. Nevertheless, recognising the difficulties being faced by the industry we are maintaining close contact with the farming unions and other interested organisations and keeping the situation under review. Table showing agrimonetary compensation available to the UK over the period from 1997 to date £ million _________________________________________________________________________________________________. First year compensation{1} Second year compensation Trigger event Deadline for Payable EU funded Payable EU funded initial notification to commission Revaluation of 21 January 31 January 1998 {2}131 {2}65.5 87.3 43.7 1997 Revaluation of 29 March 31 March 1998 {2}123 {2}61.5 82 41 1997 Revaluation of 5 June 1997 30 June 1998 {2}98.6 {2}49.3 65.7 32.9 Direct Payments (arable 31 December 1997 53.4 26.7 nil nil aid) 1997 Direct Payment (flax and 31 January 1998 0.4 0.2 nil nil hemp) 1997 Revaluation of 21 August 31 August 1998 {2}112 {2}56 74.6 37.3 1997 Direct payments (livestock, 30 June 1998 {2}37.9 {2}19 nil nil agri-environment and structural) for 1998 Revaluation of 3 May 1998 31 May 1998 1.5 0.7 0.7 0.3 Direct payments (arable 31 December 1998 89.2 44.6 nil nil aid)1998 Direct payments (flax and 31 January 1999 0.9 0.5 nil nil hemp) 1998 Sub total 647.9 310.3 Total over both periods 958.2 _________________________________________________________________________________________________. {1} i.e. during the first 12 month period following the trigger event {2} Package of aid which was partly accessed to fund the £85 million aid to livestock producers in early 1998