Press Release - Foot and Mouth: Applying the Lessons
2 February 2005
Sir John Bourn, head of the National Audit Office, reported
today on the progress made by the Department for Environment, Food
and Rural Affairs (Defra) in implementing recommendations made by
the Committee of Public Accounts following the 2001 outbreak of
Foot and Mouth Disease. Good progress has been made on most of the
recommendations made by the Committee but some key areas remain
where further work is needed.
Foot and Mouth Disease is still common in many areas of the
world and high levels of international trade and travel mean that
another outbreak is possible at any time. The Department has taken
steps to reduce the risk of the virus entering the country through
illegal meat imports, to prevent livestock from coming into contact
with the virus, and to slow the potential initial spread of
infection by improved farm biosecurity and restrictions on the
movements of animals. The Department has also taken steps to put in
place sufficient veterinary resources to deal quickly with a
sizeable outbreak, and has negotiated with over 200 contractors for
the supply of essential services at agreed prices. It has not,
however, finished work to upgrade its computer systems to help
manage an outbreak.
The Department has improved its capacity to deal with future
outbreaks of livestock diseases and its contingency plan is one of
the best available, and has been the subject of wide consultation
with the farming industry, local authorities and other rural
interest groups. The plan is, however, relevant mainly to central
government and more work is needed to engage with local authorities
and others to facilitate a co-ordinated and co-operative approach
should another outbreak arise.
European Union policy requires the rapid cull of all animals in
an infected place and of animals in dangerous contact with the
virus. Animals on neighbouring (contiguous) premises will be culled
where a possible route of infection is identified by veterinarians
or if initial efforts to control the epidemic are unsuccessful.
Scientific opinion on the relative effectiveness of vaccination and
cull of contiguous premises remains divided, and Defra has
commissioned further studies using improved computer models. Defra
has significantly increased its stock of vaccines and in future
will be able to begin vaccination within five days of an outbreak –
but the decision to vaccinate would have to be taken in the face of
many uncertainties.
The European Commission generally reimburses 60 per cent of a
Member State’s eligible expenditure on controlling livestock
epidemics. However, the Commission concluded that UK culled animals
were valued at between two and three times the Commission’s
assessment of the likely market value, and other costs incurred in
2001 were significantly higher than necessary. As a result, the
Commission has agreed to reimburse some £350 million –
approximately one-third of the Department’s initial claim for £960
million.
Defra has consulted on a new compensation scheme for all animal
diseases which would apply standard rates based on average market
values prior to an outbreak. In the meantime, Defra has drawn up a
list of 280 approved valuers and any who give significant cause for
concern will be removed from the approved list. It has also
improved its guidance to valuers but decided not to provide
benchmark valuations as a guide to valuers. The Department is still
considering proposals to share the cost of an outbreak with the
farming industry.
The Department has paid 97 per cent of invoices totalling some
£1.3 billion submitted by contractors since 2001 but has not agreed
a final settlement with 57 contractors pending the results of its
investigations. A number of cases are awaiting legal action. The
first cases to be tested in court were heard during 2003 with the
first judgement in January 2004. Nine cases are now in the High
Court and one case is the subject of ongoing Police investigation.
A further case has been referred to the Special Compliance Office
of the Inland Revenue.
Sir John said today:
"The 2001 outbreak of Foot and Mouth Disease was
devastating not only for many farmers but also for the wider rural
community. Continued vigilance is therefore essential. Defra is now
much better prepared than in 2001, but still has work to complete,
for example to develop a new compensation system for culled
animals; to determine how the costs of controlling future livestock
disease outbreaks should be borne; to link its central government
contingency plans with those of local agencies; and to update
Information Technology support for future disease
outbreaks."
Notes for Editors:
- Foot and mouth disease was confirmed at an abattoir in Essex on
20 February 2001. By the time the disease had been eradicated in
September 2001, more than 6 million animals had been slaughtered:
over 4 million for disease control purposes and over 2 million for
welfare reasons.
- The Treasury has estimated that the net economic effect of the
outbreak was less than 0.2% of gross domestic product (less than £2
billion) because expenditure was diverted elsewhere in the
economy.
- Following the three inquiries into the outbreak by the Royal
Society, Dr Iain Anderson (Lessons to be Learned enquiry) and the
National Audit Office, the Department prepared a full response
followed by a detailed action plan or "Route Map" in November
2002.
- Following the report by the House of Commons Committee of
Public Accounts in March 2003, the Department also prepared a
Treasury Minute which sets out the Government’s detailed response
to the Committee’s main findings and recommendations.
- Press notices and reports are available from the date of
publication on the NAO website at www.nao.org.uk. Hard copies can
be obtained from The Stationery Office on 0845 702 3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office which employs some 800 staff. He
and the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 11/05
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