Explanatory note

This Order prescribes the amount of compensation payable for bovine animals caused to be slaughtered by the Minister of Agriculture, Fisheries and Food under section 32 of the Animal Health Act 1981 because they are affected, or suspected of being affected, with bovine spongiform encephalopathy.

The compensation payable is an amount equal to the lower of either (i) the market value of the animal or (ii) the appropriate indicative market price except that, where a subsequent laboratory examination of tissues taken from the animal does not confirm that it was an affected animal, the compensation payable shall be an amount equal to the lower of the market value or 125 per cent of the indicative market price (article 3).

The “indicative market price” of a bovine animal for the purpose of such compensation is to be calculated in accordance with the Schedule to the Order and is based upon (a) data drawn from the monthly Agricultural Market Report (AMR), prepared by the Government Statistical Service, which provides the average price for Friesian and Holstein cows in milk and in calf, first calving cows in milk and down calving heifers and the average price for barrener cattle of dairy breeds, drawn from information from thirty six markets in England and Wales and (b) data received by the Ministry pursuant to the Bovine Spongiform Encephalopathy Order 1991 (S. I. 1991 No.2246) which requires notification of suspect BSE cases and, where appropriate, compulsory slaughter. Both the AMR and the data referred to in (b) above can be obtained from the Animal Health (Disease Control) Division of the Ministry at Government Buildings (Toby Jug Site), Hook Rise South, Tolworth, Surbiton, Surrey, KT6 7NF.

The Order revokes the Bovine Spongiform Encephalopathy Compensation Order 1990 (except in so far as compensation has been calculated under the provisions of the 1990 Order for bovine animals before the coming into force of this Order) (article 4).

A Compliance Cost Assessment has been prepared and a copy has been placed in the library of the House.