No cash on the table

THE Government has dashed hopes that it would step in with an emergency aid package for the beleaguered livestock industry in the UK.

A meeting this week of farm ministers from the UK regions, including Lord Dubs, produced plenty of sympathy but no concrete assurances of cash. Ministers will not now meet again before October.

The meeting in London followed a promised review of the industry's problems by UK farm minister Nick Brown. But it now appears this will concentrate on red tape, rather than any real effort to improve farm cash flows.

Since most of the charges under review relate to cattle passports and meat inspection, and do not apply in Northern Ireland, there will be little in this for farmers here.

The request to Brussels for an aids to private storage, APS, scheme for lamb still stands. Ireland has also sought APS, but the sheepmeat management committee is not due to meet until September 24.

Brussels sources put the chances of success at no better than 50/50. This is because the UK is seeking aid when reported lamb prices, although low, have increased over the past two weeks. If Brussels believes the market has stabilised it is unlikely to respond positively to an APS request.

The ewe culling scheme also appears not to have found little favour with the Government. It is concerned that state aid approval would not be forthcoming from Brussels, and that farmers would not support a scheme that paid no money for the sheep.

The biggest problem, however, is Treasury determination not to give extra funds to agriculture, ending hopes of a repeat of 1997 and 1998 aid packages. Ministers from Scotland and Wales, who had hinted at go it alone aid packages, backed down on their plans.

While the negative response was expected before the meeting, confirmation that no aid will be coming will cause deep frustration in the farming lobby.