Government to shelve farm tax

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Tuesday, November 17, 2009
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This is Cornwall

UNPOPULAR plans to impose an animal tax on farmers and stables to pay for disease control are expected to be shelved by the Government, writes WMN London Editor Matt Chorley.

Ministers have courted controversy since outlining the so-called "cost-sharing" proposals two years ago.

At one point the Treasury said it hoped to raise £120 million every year from the countryside. Critics warned it could send small businesses to the wall and force up food prices for shoppers.

Westcountry farming leaders condemned the proposals, which they warned would inflict extra financial costs on the industry without allowing them a greater say in preventing the spread of disease.

Equestrian leaders have also complained of the "just hand over your money" nature of the plans.

It is now doubtful that legislation to force the charges through will feature in tomorrow's Queen's Speech when the Government outlines its law-making programme. More likely is a draft Bill being brought forward in the New Year, with little chance of it becoming law before the General Election which must be held by June 3.

"It's rather like beaching the Titanic before it reached the iceberg," said Ian Johnson, South West spokesman for the National Farmers' Union.

Gordon Brown plans to use a slimmed-down list of fewer than a dozen Bills to kick-start his general election campaign. Number 10 said yesterday that it would be a "short and focused" programme of laws.

It is understood Labour strategists can see little benefit in forcing through controversial legislation for the farming industry at a time when voters are more concerned with the economy, public service funding and Afghanistan.

"It is just not a priority for us now," one source said.

Agreement on the cost-sharing plans stalled on demands for the farming industry to have a greater say in how disease controls are put in place.

Confidence in the Government hit an all-time low after the 2007 foot and mouth outbreak, which began when the virus leaked from a State laboratory.

Colin Carter, chairman of the NFU in Cornwall, said: "I have always taken the view that, unless we can share in the responsibility, how can they expect us to pick up the tab for cost-sharing?

"It is like trying to farm with one arm behind your back."

The Department for Environment, Food and Rural Affairs has stressed the "overriding objective of sharing animal health and welfare responsibilities between industry and Government is to achieve better management of animal disease risks so that the overall risks and costs are reduced".

It claims the work has the potential to "fundamentally change the relationship between industry and Government to the benefit of both".

Rosemary Radcliffe, the chairman of a joint industry and government group on the issue, has suggested a Bill in the new year will outline the powers that a new independent body for animal health might have. It will stop short of even spelling out how money would be raised from farmers.

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