Dáil Éireann debate -
Wednesday, 16 Dec 1998

Vol. 498 No. 5

Written Answers. - BSE Compensation Scheme.

Jack Wall

Question:

60 Mr. Wall asked the Minister for Agriculture and Food his views on whether the current compensation scheme for herds with BSE based on three mark averages is unjust in view of the low price of these; and if he will make a statement on the matter. [27871/98]

Minister for Agriculture and Food (Mr. Walsh)

I believe that the compensation arrangements for herds with BSE are adequate and fair. Average mart prices are used only in relation to calculating compensation for BSE affected animals and not in relation to BSE herd depopulations.

Under S.I. 195 of 1990, where a herd is slaughtered due to a case of BSE in the herd the compensation payable is the market value of the animals concerned. Market value is defined as the price which might reasonably have been obtained for the animals at the time of their slaughter in the open market.

Under S.I. 98 of 1990, the compensation to be paid for a BSE affected animal is the lesser of the market value of the animal or the average price in respect of the month which occurred two months prior to the month in which the animal was slaughtered. In effect this means that reasonable compensation is being paid for the BSE animal notwithstanding its condition.

The compensation system in place has worked well over a period of years and I have no plans to amend it at this time.