14 March 2008
Dear Sir/Madam
CONSULTATION ON TSE COST SHARING PROPOSALS
The Animal Health & Welfare Strategy for GB, published in 2004, set out government and industry's ambitions to improve disease preparedness, prevention and control. Recent outbreaks of foot and mouth disease, avian influenza and bluetongue have highlighted that these ambitions are as relevant now, if not more so, as they were in 2004.
A key element of this, is the recognition of the of the importance of the principle of partnership between industry and government, including a review of potential ways in which responsibilities and costs of prevention and control of animal disease can be more equitably shared.
The EU has recently published a Community Animal Health Strategy which also contains proposals for greater responsibility and cost sharing with industry - see link below.
http://ec.europa.eu/food/animal/diseases/strategy/docs/animal_health_strategy_en.pdf
Defra and the Devolved Administrations consulted on the principles of such an approach in December 2006. Building on this, Defra issued, on an England only basis, a more detailed consultation on responsibility and cost sharing in December 2007.
Included within this document were specific proposals to transfer or share TSE related costs currently funded by Defra across GB. Scottish Ministers have yet to take a formal policy position on these proposals, but if they were to be implemented in full by Defra then the current funding for TSE costs in Scotland will no longer be available. Spending decisions for our own budget are at an advanced stage so we will not have the flexibility to meet this short fall in funding.
The Cabinet Secretary has recently written to Defra identifying the need to discuss with them the possibility that our share of the TSE budget be transferred to the Scottish Government. This would allow us to exercise direct control over how this resource is utilised. However, formal discussions are just underway so an early resolution of the implications of such a transfer, should it be agreed and implemented, is unlikely.
The principal cost transfer proposals are 1) BSE surveillance collection & disposal costs and 2) OTM processing costs. Preparatory work has already begun to realise efficiency savings wherever possible in order to deliver an equivalent service at a lower cost.
For contingency purposes, and to ensure that the views of key stakeholders in Scotland are fully understood before any final decisions are reached, it is imperative that we obtain your views on the TSE proposals (see Annex A) and the consequent economic impact both in Scotland and elsewhere in GB. A table detailing the projected costs to be transferred is at Annex B. We invite your comments on the proposed changes plus any additional estimates on benefits and costs likely to result from the changes.
Please send your comments on this paper together with the completed permissions form (attached at Annex C) to Ian Murdoch, no later than 15 April 2008, at the address above. Alternatively responses can be emailed to: Ian.Murdoch2@scotland.gsi.gov.uk. Our preference is to receive responses electronically. Also if you have you received this consultation in the post and would prefer to receive consultations via e-mail can you provide your e-mail address.
Your response cannot be made public until the respondee information form is returned to us and we are obligated to write to those who respond without completing it. If you have any queries contact Andrew Taylor on 0131 244 6642 or Anna Murray on 0131 244 6413. A list of consultees is attached at Annex D
Yours faithfully
Martin Morgan