Vol. 495 No. 7
276 Mr. U. Burke asked the Minister for Agriculture and Food if he will consider the suspension of charges by his Department for tags and other levies while the current crisis exists in agriculture; and if he will make a statement on the matter. [21387/98]
In recognition of the difficult situation facing many farmers at the moment, I have decided that the cost of up to 20 tags ordered by each farmer by 31 March 1999 will be met by my Department. On that basis, some 75,000 farmers will receive free tags for all their calves in 1999 while the remainder of farmers may receive up to 20 free tags. The cost of this concession will be in the order of £1.9 million.
Bovine diseases levies were introduced under the Bovine Diseases (Levies) Act, 1979 to provide for the farming community to make a financial contribution towards the cost of the TB and brucellosis eradication programmes.
Rates of levies were adjusted from 1 April 1996 when they were reduced from £7.30 to £2.50 per animal slaughtered or exported live and from 1.3p to 0.5p per gallon of milk delivered for processing. This reduction was to compensate farmers for the part privatisation of the testing regime for TB and brucellosis.
Rates of levies were further adjusted from 1 July 1998 when they were reduced from £2.50 to £2 per animal slaughtered or exported live and from 0.5p to 0.4p per gallon of milk delivered for processing. This reduction was aimed specifically at partially offsetting the additional costs on farmers brought about by the increased blood testing requirements associated with revised arrangements introduced earlier in 1998 under the brucellosis eradication scheme.
It is estimated that receipts from levies for 1998 will be in the region of £10 million. This is against an estimated grant expenditure of £30 million.
Under EU legislation all member states are obliged to collect a fee to contribute to the cost of providing health inspection to the meat industry. Any national waiver would be incompatible with EU legislation and would be regarded by the EU Commission as a national aid. It is, therefore, not open to me to suspend meat inspection charges.
