London blocks calls for livestock levy repatriation

The prospect of Scotland getting its hands on £1.4 million of livestock levies annually going into the English meat promotion board slipped away this week with Whitehall rejecting the Scottish Government’s latest claim to the cash.

The dispute, which goes back seven years, relates to the levies on sheep, cattle and pigs collected at the point of slaughter, and with considerable numbers of Scottish-bred livestock now heading south to English abattoirs, the cash has been lost to Scotland’s own red meat promotional organisation, Quality Meat Scotland.

Scottish rural affairs secretary Richard Lochhead said yesterday he had experienced another “frustrating” conversation with UK farm ministers, adding that he thought it was unacceptable that they were refusing to tackle the longstanding problem.

“I’ve been calling for this vital levy income to be repatriated for some time now as has the Scottish industry. Yet successive Defra [Westminster Department of the Environment, Food and Rural Affairs] ministers have refused to find a solution to this problem simply because they gain and Scotland loses from the status quo,” he said.

He claimed it was also made perfectly clear that Scotland should not expect any action from the UK to sort out this issue in the foreseeable future.

However, Lochhead said he was not prepared to let it go, indicating he would be writing to the Secretary of State for Scotland, Michael Moore, to ask why he had failed to address an issue which is of “huge importance to Scotland’s farmers”.

“With Scottish money heading over the Border each year, it’s no surprise that UK ministers are stalling and demoting the levy repatriation issue well down their list of priorities,” he added.

“It is preposterous that the levy paid on animals born and reared north of the border goes towards promoting produce from other countries simply because it is collected at the point of slaughter.”

However, a Defra spokesperson claimed much of the money raised through red meat levies benefitted the Scottish industry, in particular the £7 million used to promote British meat to UK and export markets. “We are looking at alternative levy options but are clear that any change must not place additional burdens on businesses.”

Lochhead had support from NFU Scotland, president Nigel Miller stating: “I can appreciate the cabinet secretary’s growing frustration over this issue. It is now seven years since the Radcliffe review of agricultural levy bodies suggested that, for livestock levies, statutory monies should be returned to promotional bodies in the animal’s country of birth,

“Significant numbers of our cattle and sheep are slaughtered in other parts of the UK and the loss of slaughtering at Broxburn has resulted in more Scottish pigs going south of the Border.”

Jim McLaren, chairman of Quality Meat Scotland, expressed both support for the Scottish Government’s commitment on the issue and concern over the increasing number of store animals now heading south, a situation which will further exacerbate the levy situation.

He said: “While it gives a clear indication of the demand which exists for high-quality, high-health Scottish livestock, it does mean more animals are being slaughtered outwith Scotland, resulting in a further erosion of levy income.”