This item was published during the term of a previous administration that ended in April 2007
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Ross Finnie reassures hill farmers and explores sheepmeat export prospects
03/08/1999
Scottish Rural Affairs Minister Ross Finnie today confirmed that he will consult widely on the scheme set to replace Hill Livestock Compensatory Allowances (HLCA). The Minister will also convene a meeting with the SNFU and the main sheepmeat exporters in a bid to explore ways to increase Scottish sheepmeat exports to Europe.
The move follows indications from the European Commission that it will produce a Transitional Regulation allowing Member States to arrange for a one-year transition from the previous HLCA payment scheme to the new area-based system.
The EC has been under pressure, particularly from the UK, to clarify the position so that compensatory allowances can be paid on the normal timescale next March.
Speaking during a visit to the Turriff Show Mr Finnie said:
"We have been pressing the European Commission for months now on behalf of the industry and at least we now know that there will be a one-year transition. Clearly we need to know further details of the transitional scheme but I am reasonably confident that some form of roll-over of the present arrangements will emerge. Efforts will be redoubled in the autumn to resolve the shape and content of next year's scheme.
"I also intend to issue a further and more detailed consultation paper on the longer-term scheme to replace HLCA. This will help us firm up details of the scheme which will have to be submitted to the European Commission as part of our new Rural Development Plan."
Commenting on prospects for the sheep sector the Minister said:
"Since assuming office, I have taken a particular interest in the sheep sector. I have met farmers on their home ground and listened to the views of those with an interest in the business which, of course, is very important to Scotland. I recognise that sheepmeat exporters play an important and pivotal role in the market, and I know that their success can help lift the market as a whole.
"I will soon convene a meeting of the main exporters and Union representatives to discuss prospects for the rest of the year and consider how they can be improved. I don't underestimate the difficulties involved but feel that now is the time to be addressing the matter rather than waiting until after the autumn sales when the impact of any initiatives may be more limited".
BACKGROUND
1. As part of the Agenda 2000 CAP reforms, Member States agreed that the new Regulation (Council Regulation Number 1257/1999) should replace the existing Rural Development legislation. Thus Hill Livestock Compensatory Allowances (HLCAs) would end with headage payments being replaced by area payments instead.
2. The Commission has now indicated that it will produce a Regulation allowing a one-year transition for LFA payments. When this matter is debated in greater detail after the Commission's autumn break, the UK will press for some form of roll-over of the existing scheme in acknowledgement of the timing and other constraints which affect the situation this year. Further clarification of the year 2000 scheme will be issued once the full details of the Commission's Transitional Regulation are known. Payment rates will be announced at a later stage.
3. There has already been one round of consultations on future support for farmers in the Less-Favoured Areas. The responses have been analysed and a further more detailed consultation paper will be issued in due course.
News Release: SE0205/99
3 August 1999