Rural Development Sub-committee

Final report on the Sub-committee’s scrutiny of the response by the Welsh Assembly Government to the Foot and Mouth outbreak

Introduction

1. UK-wide restrictions on animal movements were implemented by the UK Government in response to the foot and mouth outbreak, which occurred in Surrey during August and September.  Since the outbreak, the Rural Development Sub-committee has monitored developments and, in particular, the impact of the outbreak on farming and associated industries.

2. The Sub-committee agreed that it would be appropriate to invite the Minister for Rural Affairs to be scrutinised in relation to the Welsh Assembly Government’s handling of the foot and mouth outbreak, once it became clear that the outbreak was at an end.  The Finance Committee had already agreed to examine the financial impact of the outbreak on Wales and as part of this scrutiny, had gathered written and oral evidence from the Farmers’ Union Wales, National Farmers’ Union, Hybu Cig Cymru and the Welsh Livestock Auctioneers’ Association.  In order to avoid duplication, the Sub-committee agreed to consider the evidence already provided to the Finance Committee, rather than inviting the witnesses to provide separate evidence.

3. The Sub-committee’s scrutiny of the Welsh Assembly Government’s response to the foot and mouth outbreak was limited to one evidence session, which took place on 29 November 2007.  Elin Jones AM, Minister for Rural Affairs, attended the evidence session, together with Dr Christianne Glossop, Chief Veterinary Officer, and Huw Brodie, Director of the Department for Rural Affairs.

Issues raised in evidence

4. The Minister opened the evidence session by explaining that, on confirmation of the outbreak, she set two objectives for the Welsh Assembly Government.  The first objective was to ensure the disease did not enter Wales, and the second was to reintroduce animal movement as soon as it was safe to do so, thereby minimising the economic impact on farming and associated industries.

5. In taking evidence from the Minister, the Sub-committee sought clarification and further details on the following issues:

• The current cost of the foot and mouth outbreak;

• Discussions between the Assembly Government and those representatives from the wider rural economy affected by the outbreak, such as the tourism industry;

• In addition to impacts on the sheep industry, difficulties facing the dairy and beef suckler industries, through the collapse in the price of barren cows and the inability to move calves;

• Frequency and nature of discussions with UK Government representatives in relation to the foot and mouth outbreak;

• Availability of recommendations arising from meetings of the DEFRA Animal Disease Policy Group;

• The impact of the outbreak on Assembly Government staff resources;

• The ability of the Assembly Government to deliver other projects, such as the single farm payment, Tir Gofal and Tir Cynnal on time, given the impact of the outbreak on staff resources;

• The outcome of discussions between the Assembly Government and major retailers in relation to the promotion of Welsh meat products and the level of participation;

• The need for increased public sector procurement of Welsh meat products to assist the farming industry;

• Vulnerability of the farming industry to export bans and the need to strengthen the home market;

• Calls for packages of support for the Welsh farming industry similar to those provided for farmers in England and Scotland;

• The decision not to provide additional assistance to the farming industry in Wales, including packages of support for farming charities and advisory services;

• The "fundamental disagreement between the Assembly Government and the UK Government over the principle of who pays” for any additional package, and the continuing impact on the farming industry if this fails to be resolved;

• Spending of any shortfall in the £6.7 million allocated for the light lamb scheme;

• The expected cut in funding for trading standards officers; and

• Liaison with the UK Government throughout the outbreak and beyond.

6. The Committee did not seek any written clarification from the Minister during the evidence session.

Recommendations

7. The Committee is generally content with the approach and handling of the foot and mouth outbreak and resultant animal movement restrictions by the Welsh Assembly Government and the Minister for Rural Affairs.  Indeed, Members placed on record appreciation for the "commendable effort” of staff and the positive experiences that they and others had had in their dealings with them.  The Committee was also satisfied in general with the nature and frequency of ongoing discussions between the Westminster Government and the devolved administrations.  

8. The Committee does however have a number of recommendations aimed at supporting the industry in the short and long-term and urges the Assembly Government to consider them fully.  It also suggests that the recommendations below aimed at improving animal disease control are read in conjunction with those contained in the Committee’s recent report on bovine tuberculosis.

Recommendation 1: The Committee fully supports the Assembly Government’s efforts to resolve the current disagreement with the UK Government over where responsibility for the provision of additional assistance to the farming industry lies.  The Committee therefore recommends that the Assembly Government continues its efforts to seek the funding of compensation payments to Welsh farmers from the UK Government and that the matter is resolved as soon as possible.

Recommendation 2: Whilst the Committee concedes that responsibility for provision of a support package for the farming industry primarily lies with the UK Government, it recommends that, while negotiations on this matter continue, the Assembly Government investigates providing an interim support package to ensure that the objective of "minimising the economic impact on farming” and associated industries is met.  The Committee suggests that such an interim support package could be funded through reserves and any shortfall in spending for the light lambs’ relief.

Recommendation 3: The Committee expresses concern as to the apparent reliance of the Welsh farming industry on the export market.  The Committee therefore recommends that the Assembly Government stimulates a long-term demand in the home market by encouraging retailers to stock more Welsh produce; enhancing promotion and marketing of Welsh produce to consumers; encouraging the public sector, such as schools and hospitals, to use produce from Wales; and supporting individual farmers to access the home market.

Recommendation 4: The Committee notes the proposed cuts in the funding of trading standards officers of up to 12 percent and is concerned as to the impact this may have on future implementation of disease control in local authority areas.  The Committee therefore recommends that the Assembly Government takes the necessary steps to ensure that any cuts in funding for trading standards officers does not compromise the future protection of Welsh livestock from infection.

Recommendation 5: The Committee is concerned that the Assembly Government does not appear to have a current estimate of the cost of the foot and mouth outbreak to farming and related industries and that its reliance on estimates from Hybu Cig Cymru, specific to the sheep industry, may not take into account the full extent of the problem.  The Committee therefore recommends that the Assembly Government undertakes its own full and meaningful assessment of the current situation, with a view to embarking on further negotiations with the UK Government on a funding package.

Recommendation 6: The Committee welcomes the Minister’s intention to discuss with farming charities and advocacy services the extent of the additional work they have had to undertake as a result of foot and mouth disease, in order to assess whether additional financial support should be forthcoming.  The Committee supports the Minister’s approach and would urge the Assembly Government to undertake meetings with farming charities and advocacy services, such as the ARC-Addington Fund, the Royal Agricultural Benevolent Institution and the Farm Crisis Network, as a matter of urgency, with a view to providing extra funding.

Recommendation 7: The Committee notes the Minister’s assurances that the impact on staff of the foot and mouth outbreak will not compromise the ability of the Assembly Government to deliver other projects, such as the single farm payment, Tir Gofal and Tir Cynnal.  The Committee recommends that the Assembly Government monitors the delivery of such projects to ensure that there are no delays, which would further impact on an already struggling industry.