The Bovine Spongiform Encephalopathy Compensation Order 1988

Compensation for bovine animals slaughtered for bovine spongiform encephalopathy

3.—(1) Where the Minister causes an affected animal or a suspected animal to be slaughtered under the powers conferred on him by section 32(1) of the Act in its application to bovine spongiform encephalopathy((1)) the compensation payable by him shall, subject to paragraph (2) below, be an amount equal to 50 per cent of either—

(a) the market value of the animal; or

(b) 125 per cent of the average price in respect of the month which occurred two months prior to the month in which the market value of the animal was determined in accordance with paragraph (3) below, rounded down to the nearest multiple of £2,

whichever is the less.

(2) Where the Minister causes an affected or suspected animal to be slaughtered and an examination at a veterinary laboratory of the Ministry of tissues taken from the carcase of the animal does not confirm that it was an affected animal the compensation payable by the Minister shall be an amount equal to either—

(a) the market value of the animal; or

(b) 125 per cent of the average price in respect of the month which occurred two months prior to the month in which the market value of the animal was determined in accordance with paragraph (3) below, rounded down to the nearest multiple of £2,

whichever is the less.

(3) (a) Notwithstanding the provisions of articles 3 and 4 of the Diseases of Animals (Ascertainment of Compensation) Order 1959((2)) the market value of a bovine animal which the Minister proposes to cause to be slaughtered shall, for the purposes of payment of compensation under this Order, be determined—

(i) by agreement between the Minister and the owner of the animal, or

(ii) by one valuer appointed jointly by the Minister and the said owner, or

(iii) failing such agreement or appointment, by a valuer nominated by the President of the Royal Institute of Chartered Surveyors.

(b) A valuer appointed or nominated under sub-paragraph (a)(ii) or (iii) above shall be paid by the Minister and shall give to the Minister and the owner a certificate in writing of the said value.

(c) For the purpose of obtaining an agreement under sub-paragraph (a)(i) above the Minister may employ a valuer to agree the market value.

(d) In this paragraph a reference to a valuer shall be construed as a reference to an individual, and not to a company or firm or to two or more persons jointly.

(4) For the purposes of this article, the market value of a bovine animal is the price which might reasonably have been obtained for it at the time of valuation from a purchaser in the open market if the animal were not an affected or a suspected animal.

(1)

Section 32 of the Animal Health Act 1981 was applied to bovine spongiform encephalopathy by S.I. 1988/1345.

(2)

S.I. 1959/1335.