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Tuesday, 27 November, 2001, 21:07 GMT
Call for more foot-and-mouth cash
foot-and-mouth sign
Farmers' leaders say the compensation figure is too low
Farmer's leaders say the amount of money available for foot-and-mouth compensation, announced in Gordon Brown's pre-Budget speech, falls far short of the figure needed to get rural industry back on its feet.

In Tuesday's speech, the chancellor said the total cost of the epidemic, including support for rural businesses, would be �2.7bn.

But Ben Gill, the president of the National Farmers Union (NFU), said the real cost of the outbreak was at least �1bn above the compensation paid out to farmers, because allocated funds covered only loss of livestock.


I think his figure of �2.7bn is being optimistic. He is ignoring the loss of profits for many of those worst hit

Tom Griffiths-Jones, UK Rural Business Campaign
"Despite this large public bill, farmers themselves have made disastrous losses as a result of foot-and-mouth," said Mr Gill.

"Their compensation has only covered the loss of their livestock, not the immense financial burden caused by the lack of markets, extra costs, movement restrictions and consequential losses like the inability to produce milk or meat."

He added: "It must be remembered that the root cause of the problem was a lack of resources to keep the disease out.

"If the proper contingency plans had been in place at the outset, the bill to the public and the pain and cost to farmers and the rural economy would have been considerably lower."

The UK Rural Business Campaign, a group representing all industries hit by foot-and-mouth, says the figure for compensation should be even higher.

It is calling for �5.1bn to be made available to help those affected by the outbreak.

Tom Griffiths-Jones, the group's South West representative, said: "I think his figure of �2.7bn is being optimistic. He is ignoring the loss of profits for many of those worst hit."

Ewen Cameron, the chairman of the Countryside Agency, welcomed measures announced by Mr Brown to help rural businesses recover from foot-and-mouth, which he said would benefit many firms.

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