1994 No. 673
The Bovine Spongiform Encephalopathy Compensation Order 1994
Made
Laid before Parliament
Coming into force
The Minister of Agriculture, Fisheries and Food in exercise of the powers conferred on her by section 32(3) of the Animal Health Act 19811, and of all other powers enabling her in that behalf, with the approval of the Treasury in accordance with the said section 32(3), and the Minister of Agriculture, Fisheries and Food, the Secretary of State for Scotland and the Secretary of State for Wales, acting jointly, in exercise of the powers conferred by section 34(7) of the said Act, and of all other powers enabling them in that behalf, hereby make the following Order:
Title and commencement1
This Order may be cited as the Bovine Spongiform Encephalopathy Compensation Order 1994 and shall come into force on 1st April 1994.
Interpretation2
In this Order—
“affected animal” means a bovine animal which is affected with bovine spongiform encephalopathy;
“barrener cattle” means adult female bovine animals which have had one or more calves and which are being sold for either immediate slaughter or further fattening before slaughter;
“bovine animal” means a bull, cow, steer, heifer or calf;
“indicative market price” means a price calculated in accordance with the schedule to this Order;
“market value” means the price which might reasonably have been obtained for a bovine animal at the time of valuation from a purchaser in the open market if the animal were not an affected or suspected animal;
“suspected animal” means a bovine animal which is suspected of being affected with bovine spongiform encephalopathy.
Compensation for bovine animals slaughtered for bovine spongiform encephalopathy.3
1
Where the Minister causes an affected animal to be slaughtered under the powers conferred on her by section 32(1) of the Animal Health Act 1981 in its application to bovine spongiform encephalopathy2, the compensation payable by her shall be an amount equal to either —
a
the market value of the animal; or
b
the indicative market price for the month in which the market value of the animal was determined,
whichever is the less.
2
Where the Minister causes a suspected animal to be slaughtered under the powers conferred on her by section 32(1) of the Animal Health Act 1981 in its application to bovine spongiform encephalopathy 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 indicative market price for the month in which the market value of the animal was determined,
whichever is the less.
3
Notwithstanding the provisions of articles 3 and 4 of the Diseases of Animals (Ascertainment of Compensation) Order 19593, 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 the Order, be determined —
a
by agreement between the Minister and the owner of the animal, or
b
by one valuer appointed jointly by the Minister and the said owner, or
c
failing such agreement or appointment, by a valuer nominated by the President of the Royal Institution of Chartered Surveyors.
4
A valuer appointed or nominated under paragraph (3)(b) or (c) above shall be paid by the Minister and shall give to the Minister and the owner a certificate in writing of the said value.
5
The Minister shall take such steps as she considers appropriate for the purpose of bringing to the notice of persons concerned the indicative market price in respect of each month and the total number of animals and the total sale price on which the calculation of such indicative market price was based.
Revocation and saving4
1
Subject to paragraph (2) below, the Bovine Spongiform Encephalopathy Compensation Order 19904 is hereby revoked.
2
In relation to those bovine animals for which compensation has been calculated under the provisions of the Bovine Spongiform Encephalopathy Compensation Order 1990 prior to 1st April 1994, that calculation shall continue to apply.
In witness whereof the Official Seal of the Minister of Agriculture, Fisheries and Food is hereunto affixed on
We approve,
SCHEDULECALCULATION OF INDICATIVE MARKET PRICE
The indicative market price for each month shall be calculated using data collected in Great Britainrelating to the month occurring two months before the date on which the market value was determinedunder article 3(3) of this Order and in accordance with the following formula:
where
A equals the number of cattle aged less than 7 years when valued which were slaughtered as BSE suspects;
B equals the average price for Friesian and Holstein cows in milk and in calf, first calvingcows in milk and down calving heifers, in each case of first and second quality;
C equals the number of cattle aged 7 years or more when valued which were slaughtered as BSE suspects;
D equals the average price for first and second quality barrener cattle of dairy breeds,
the final figure being rounded down to the nearest multiple of £1.
(This note is not part of the Order)