Ministry of Agriculture, Fisheries and Food and the Intervention Board : BSE, the cost of a crisis report / by the Comptroller and Auditor General.

  • Great Britain. National Audit Office.
Date:
1998
Catalogue details

Licence: Open Government Licence

Credit: Ministry of Agriculture, Fisheries and Food and the Intervention Board : BSE, the cost of a crisis report / by the Comptroller and Auditor General. Source: Wellcome Collection.

    11/130 (page 5)
    The system did not become operational until almost a year later, in August 1997. An interim system gave rise to various difficulties for claimants and the Board, including validation of claims, reconciliations and accounting for expenditure. The National Audit Office examined a sample of payments and found clerical mistakes in over 40 per cent of the sample of payments made to abattoirs. The results suggested a possible error of 0.17 per cent of the total compensation payments to farmers in 1996-97. [Paragraphs 2.59 to 2.69] Other BSE-related schemes On other support measures EF] = The Ministry and the Board put into operation a wide variety of other schemes, which included short-term support to specific sectors of the industry - for example, beef marketing, slaughtering and rendering; the collection, storage and disposal of unsaleable beef products and feed; and increased expenditure on existing schemes such as the Beef Special Premium and Suckler Cow Premium Schemes. [Paragraphs 3.13, 3.14, Appendix 2] Ef} 0s The National Audit Office found that there was no overlap in these schemes, although some sectors of the industry received aid from more than one scheme in support of different aspects of their trade. The Ministry had set appropriate eligibility criteria for each scheme and had obtained the appropriate statutory authority. For some schemes, the Departments relied initially on the authority of the Appropriation Act. Treasury approval was also given, although the Ministry was late in obtaining Treasury authority for the aid to the hide industry scheme. [Paragraphs 3.15 to 3.17] On the Calf Processing Aid Scheme Erd =: This scheme, for which European Union legislation was introduced in 1992, is aimed at reducing the supply of beef by compensating farmers for the slaughter and disposal of very young male calves. Up to the end of September 1997 over 800,000 calves had been slaughtered, at a cost of some £75.4 million. This aid is fully reimbursable by the European Union. [Paragraphs 3.5 to 3.9] 18 The National Audit Office found that the scheme had been appropriately implemented under relevant European Union regulations; and that while errors in claims had occurred, checks carried out by the Board and action taken to address weaknesses were adequate. [Paragraphs 3.10 to 3.12]