Liz McManus (Wicklow, Labour)
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Question 6: To ask the Minister for Agriculture and Food her views on the recent report from the European Court of Auditors on the European Commission's handling of the foot and mouth outbreak in 2001; if there has been any discussion at European Council level on this report; and if she will make a statement on the matter. [1925/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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The European Court of Auditors' Special Report No. 8 of 2004 on the European Commission's management and supervision of the measures to control the 2001 foot and mouth disease outbreak and of the related expenditure was issued on 16 November 2004. The audit was carried out at the Commission and in France, Ireland, The Netherlands and the United Kingdom. The objectives of the audit were to ascertain whether the analytical method used by the Commission as the basis for the strategy for eradicating the disease was up to date; whether the strategy had been implemented effectively; and the system for reimbursing to member states expenditure on compensating farmers and slaughtering their animals was adequate, rapid and non-discriminatory.

The court found that in the absence of a more clearly defined Community framework for the calculation of compensation to be paid to their farmers, member states were able to introduce a variety of systems that gave rise to variations in the treatment of farmers within the Community. Due to this variety of compensation systems, the Commission's task of determining the amounts eligible for reimbursement proved to be complex. This caused considerable delays in reimbursements to member states. In a number of cases, there were double payments of animal premiums as a result of the authorisation given by the Commission to member states to pay animal and slaughter premiums to farmers, in addition to compensation for foot and mouth disease compensation, without their having to comply with the related control conditions. After the crisis, many shortcomings in the prevention and control arrangements were remedied, but the financial framework had not been revised.

In light of these findings, the court recommended that the Commission clarify the financial framework applicable to epidemics of animal disease, while reducing as far as possible the financial risk to the Community budget. The Commission subsequently submitted proposals to address the foregoing in respect of foot and mouth disease.

The report was discussed at the AGRIFIN working party on financial agricultural questions on 3 December 2004, at which the court's findings and recommendations and the replies given by the European Commission were supported by those member states concerned by the 2001 foot and mouth disease crisis. This matter is likely to come before the Council in the coming months in order for it to take note thereof.

Mary Upton (Dublin South Central, Labour)
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It is very important that the farmers affected by the outbreak of foot and mouth disease be compensated. However, the outbreak had financial implications for many others, including those involved in the tourism industry and other areas of the food industry. Has the Commission a view on further compensation methods that might take into account all the others who may not have been at the front line, but who were very much affected secondarily?

One of the Commission's recommendations was that ways of including farmers in the disease control system should be studied with a view to involving them more closely. Has any action been taken in light of this recommendation?

Mary Coughlan (Donegal South West, Fianna Fail)
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Naturally, we were part of the audit process. The relevant issues are being discussed and will be brought before Council. It is an issue for the Commission but, having said that, I hope the new procedures being introduced will address the concerns that have been raised.

On the larger issue of compensation, the foot and mouth disease crisis had considerable financial implications. Thank goodness we did not have another outbreak of the disease. Although the disease did not just affect those in mainstream agriculture, the compensation provided was specific to the animals that were slaughtered and destroyed.

Denis Naughten (Longford-Roscommon, Fine Gael)
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What is the Minister's opinion of comments made during the Dutch Presidency of the EU which suggested that farmers would have to fund any compensation for outbreaks in the future and invest in that fund over time?

In light of the foot and mouth disease issue, and the recent EU food and veterinary laboratory report, is the Minister concerned about the importation of Brazilian beef here and the associated risk, as highlighted by our colleagues in the Food and Veterinary Office in County Meath?

Mary Upton (Dublin South Central, Labour)
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In the unfortunate event of another outbreak is there any discussion at European level about vaccination?

Mary Coughlan (Donegal South West, Fianna Fail)
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The Deputies have raised several issues, remote from the question but that is beside the point.

Denis Naughten (Longford-Roscommon, Fine Gael)
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The Minister is very capable.

Mary Coughlan (Donegal South West, Fianna Fail)
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I do not know how capable I am but I will do my best on this. Discussion of disease levies is at a preliminary stage and no position has been taken. I have noted the views of most people on the issue. It would be reflected in serious charges that might have serious consequences. Some people might see it as a deterrent but in the overarching discussion it has not come forward for high level consideration yet and is only at consultation stage.

I do not see labelling of beef as the issue but I have indicated in the House that I want to ensure clear labelling is introduced. As it is taking some time to get legislation through the House, the Minister for Health and Children is facilitating me in one of her legislative measures and hopefully we will be able to address those concerns. The European Union expects the same standards for importation as others do.

In response to Deputy Upton, vaccination causes difficulties in exportation because the animals are not disease free but it is the subject of ongoing consideration.