Bovine TB: Compensation

Jim Shannon Excerpts

Wednesday 29th January 2020 Westminster Hall

[George Eustice]

My hon. Friend makes a very important point; none of the tests that we have are perfect. TB is a difficult, insidious and slow-moving disease that is sometimes difficult to detect. We are doing a big piece of work to try to improve diagnostics, including by looking at options such as the phage test, and in recent years our use of the interferon gamma test—the more sensitive blood test—has been more widespread.

A relatively small additional number of animals fall into the category highlighted by my hon. Friend the Member for St Ives. Around 550 animals per year are picked up through routine post-mortem inspections during commercial slaughter, either because they became infected between tests or because they were missed by less than perfect tests.

Since 2006 compensation for TB-affected animals is determined through table valuations, whereby the compensation paid for the animal mirrors the average price paid on the open market for similar types of cattle. There are around 51 different table value categories, which are based predominantly on the subdivision of non-pedigree beef cattle from pedigree beef cattle, and non-pedigree dairy from pedigree dairy. There is a whole range of subcategories based on the age of the animal.

My hon. Friend the Member for Congleton (Fiona Bruce) made the important point that farmers will sometimes say that the table valuation does not represent the value of the animal. That can be difficult, and we are constantly looking to refine the tables, because the value of a small pedigree Dexter cow might be very different from that of a pedigree Hereford or a pedigree South Devon, which are larger animals. We recognise those issues and are constantly trying to refine the tables. It is also important to recognise that we went to a table valuation system, because prior to 2006 there were individual valuations for each animals. Unfortunately, however, we found that land agents would often tend to value up animals, and the taxpayer was not getting good value for money as a result of individual valuations. That is why we introduced a table valuation system. It is different in Wales, which remains on an individual valuation system.

[Jim Shannon (Strangford) (DUP)]

We have had a large number of bovine TB outbreaks in Northern Ireland, especially in my constituency of Strangford. We want to make sure that the compensation scheme to which the Minister refers is uniform across the whole United Kingdom of Great Britain and Northern Ireland. I want to be sure that, for any potential legislative changes to the compensation scheme that result from this debate, discussions will take place with the Northern Ireland Assembly and, in particular, with the Department of Agriculture, Environment and Rural Affairs, to ensure a uniform response across the whole United Kingdom of Great Britain and Northern Ireland.

[George Eustice]

Disease control and dealing with epidemiological outbreaks, including TB, are devolved matters, so each part of the UK has a different approach. In Scotland there is not currently a TB problem as it does not affect the badger population. Wales has a severe problem but is not using culling at this stage. In England we are starting to make significant progress through culling. Northern Ireland is trialling different approaches, such as “test, vaccinate or remove”, although that is rather expensive. It is a fully devolved matter that is decided by the relevant Administration—we are delighted that there is a new Administration in Northern Ireland.

To support and inform the table valuations, we collect data for around 1,250,000 animals every year from the sales of store cattle, calf sales, breeding and dispersal sales. That ensures that the table values are based on real sales data and are as accurate as possible. I take on board the point made by my hon. Friend the Member for Congleton and others about the table valuations, but I hope that she understands why we switched to that system over individual valuations.

To return to the specifics of this case, decisions on whether meat is fit for human consumption are made by the official veterinarians who work for the Food Standards Agency in the slaughterhouse. Their decisions are based on findings from the post-mortem inspections that they carry out, as enshrined in the food hygiene regulations. Those involve a set of criteria and an approach very different from what a DEFRA or Animal and Plant Health Agency vet would use on-farm.

When post-mortem inspection reveals lesions indicative of TB in more than one organ, or in more than one anatomical region, the whole carcase is declared unfit for human consumption. As my hon. Friend pointed out, that occurs in a relatively small number of cases, but I appreciate the significance to the farmer affected. About 6% of such cases are picked up in that way. However, when a TB lesion has been found in only one organ or just one part of the carcase, only the affected organ or part of the carcase is rejected. In the vast majority of cases, therefore, when an animal goes to the slaughterhouse and is not condemned entirely, there is generally a significant salvage value.

DEFRA only pays statutory compensation when it has deprived someone of their property to help eradicate a disease. The reason involves DEFRA requiring that an animal be killed as a disease-fighting requirement. DEFRA uses legal powers under the Animal Health Act 2002 to dictate that an animal must be seized, and it has enforcement powers to seize and remove an animal if, as sometimes happens, a farmer resists. In such instances, it is deemed appropriate that the farmer should be compensated.

When a farmer has an animal that has been picked up not by a test—therefore not compulsorily slaughtered by DEFRA—but only on arrival at the slaughterhouse, that situation is much more in the realm of commercial risk. An animal can be condemned for many different reasons for which a farmer would not be compensated, and it is regarded as an issue of commercial risk.

The situation can be addressed in two ways. First, in the specific case of the abattoir concerned, perhaps abattoirs need to be clear in their contracts with farmers and stipulate who is liable in the event that a carcase is condemned. If an abattoir wanted to make it clear that it would not pay for a condemned carcase, stating that in a contract could mean that the county court might find in a different way.

Secondly, we have done some work with NFU Mutual. The National Farmers Union and NFU Mutual are working on an insurance policy product to deal with such situations—either an abattoir can take out insurance to cover the cost of an animal where that happens, or the farmer could arrange to take out some insurance to cover such issues.

To go back to the intervention of my hon. Friend the Member for Congleton (Fiona Bruce), many farmers who have highly prized show-winning cattle—not just pedigree beef or dairy cattle, but ones that have a huge value—privately insure them, to top up the difference between the table value and the actual value. The commercial insurance market will help farmers to cover those costs and to protect them against loss of their prize-winning bloodstock.

I accept the point made by my hon. Friend the Member for St Ives about the need to share more effectively the details of how the TB compensation system works. We are looking to address that by publishing a briefing note on TB compensation, which will go on to the TB information hub operated by the Agriculture and Horticulture Development Board. More generally, there is always room to improve communications, so we will continue to work with the farming unions and others to meet the needs of those who deal with such difficult situations. We invested £25,000 in that TB hub website to improve information available to farmers and give them other practical advice on aspects of their TB programme.

I hope that I have been able to address some of the issues raised by my hon. Friend. He will be disappointed that I have not announced at the Dispatch Box that cases such as his will in future be compensated, but I hope he understands that to do so would be a leap from what we have always done as a nation, in particular since the Animal Health Act 1981, in which the clear concept was of a duty on Government to compensate when we required animals to be destroyed for disease-fighting reasons. Unfortunate cases in which we have not required compulsory slaughter are very much in the realm of commercial risk. It is for abattoirs and farmers through their contracts, or for both through insurance products, to cover their risk.

Finally, I make an offer to my hon. Friend the Member for St Ives, given that he is a close neighbour all the way down in west Cornwall. I am more than willing to meet the particular abattoir owner concerned and to discuss the matter with him. My hon. Friend mentioned the Godfrey review, and we will be responding to that imminently. It will include some proposals to do with TB compensation but, alas, not the one that he is seeking for me to confirm today. However, we have had a good debate and covered many different areas. Again, I thank my hon. Friend for bringing the issue to my attention.

Question put and agreed to.