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Spending Review 2000

18 July 2000

SR2000/MAFF

Modernising measures for agriculture

Modernising agriculture, protecting public health, a commitment to protect the environment, and the introduction of reforms, including the creation of a new Common Agriculture Policy (CAP) Payments Agency, which will ensure better value for taxpayers' money, are reflected in funding for a package of measures for the Ministry of Agriculture, Fisheries and Food (MAFF) are announced today.

In pursuing the Agriculture Strategy launched by the Prime Minister earlier this year, MAFF will put in place tough new reforms to facilitate the development of a modern, sustainable and competitive farming industry which is responsive to consumers' requirements.

Welcoming the announcement today, the Minister of Agriculture, Nick Brown said:

"The package of measures announced today demonstrates the Government's modern approach to spending on agriculture and the environment.

"We are committed to helping the farming industry modernise, compete and adapt to change as well as securing agreement to Common Agricultural Policy reforms by March 2004 which give a better deal to consumers and taxpayers.

"I am also particularly pleased to announce a new aim for the Ministry of Agriculture, Fisheries and Food."

MAFF's new is aim is:

  • good quality food which meets consumers' requirements;
  • modern sustainable, competitive farming and fisheries businesses; and
  • protection of the rural and marine environment and a thriving rural economy.

MAFF's new spending plans fulfil the Government's pledge to introduce a significant programme of measures to implement the Agenda 2000 Rural Development Regulation. The England Rural Development Plan will help the environment, the modernisation of the farming industry and rural economies generally.

With the introduction of modulation of CAP payments in 2001-02, there will be a shift of emphasis away from production-related payments.

Protection of public health will continue to have top priority. In addition to being on track by 2004 to reduce the annual incidence of BSE to very low levels by 2006, the Department will introduce a precautionary long term GB-wide scrapie eradication programme, with a ram genotyping scheme to run in parallel with new testing and control measures, alongside MAFF's ongoing work on scrapie control;

Other measures include:

  • investment in MAFF's Veterinary Laboratories Agency (VLA) which will provide better facilities for research on Transmissible Spongiform Encephalopathies (TSEs) in sheep and research on other major animal diseases, including those with implications for human health;
  • an increase in testing for TB in cattle with more money for compensation;
  • an increase in capital grants to local flood and coastal defence operating authorities to replace and improve existing defences. There will be an in-depth review of the current arrangements for provision and funding of flood and coastal defences, which will be completed in 2001; and
  • purchase of a new marine research vessel which will enable the Centre for Environment, Fisheries and Aquaculture (CEFAS) to contribute to achieving MAFF's objectives on fisheries and the environment.

MAFF will make a major contribution to the Modernising Government programme through the creation of a new CAP Payments Agency (CAPPA) which brings together CAP payments functions of IB and MAFF.

Farmers and traders will benefit from a reduction in regulation and more efficient and rapid processing of payments, with the achievement of 95 per cent electronic service delivery capability by March 2004. Over time there will be significant savings for taxpayers, with a 10 per cent cut by March 2004 in unit costs of administering payments.

Creation of the new dedicated CAP Payments Agency provides the opportunity to restructure other aspects of MAFF's regional operations. MAFF will enhance its contribution to regional policy making by participating in the Government Office network, and will make other organisational changes to facilitate effective delivery of the England Rural Development Plan and other MAFF policies.

The overall aim of these changes is to ensure that MAFF provides a streamlined modern service to all its customers, making maximum use of new technology but maintain close links with the farming community through a strong regional presence on the ground.

Furthermore, MAFF will also:

  • continue its work to encourage the development of a sustainable fisheries industry through a reduction in UK fishing effort in those sectors with most over-capacity;
  • work towards delivering further improvements in standards of animal health and welfare, with the aim of reducing by 5 per cent by March 2004 the time taken to clear up cases of poor welfare in farmed animals.

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Notes for editors

1. Spending Plans: key numbers (DEL)

£ million2000-01 2001-02 2002-03 2003-04
Total Plans (MAFF and IB) 983 118512501270

of which:

Resource Budget

813997992 1030
Capital Budget 170 188258 240
Forestry Commission* 597378 78

* Includes baseline for Wales. Responsibility will pass to the Assembly in 2000-01.

2. Expenditure on the CAP in the UK (within Annually Managed Expenditure (AME)) is currently projected to be around £2.8 billion each year over the period.

3. For more details, please call the MAFF press office on 020 7238 5599.

External links

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Spending Review 2000 Press Notices Index