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Volume 6: Human Health, 1989-96
2.
The slaughter and compensation scheme
Annex 1 to Chapter 2: Schedule of BSE Compensation Orders (Suspected and Affected Animals) Part A: Orders in Great Britain
The terms of the relevant orders are summarised below. They are not transcribed.
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BSE Compensation Order-1988 |
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1) For an animal affected with BSE, compensation will be paid at an amount equal to 50% of either:
(a) the market value of the animal, being 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 neither affected with BSE nor suspected of this; 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 (3) below rounded down to nearest £2;
2) For an animal not affected, the compensation shall be the full value of (a) or (b) above; whichever is the less
3) The amount in each case shall be determined:
i. by agreement between Minister and owner
ii. by one valuer appointed jointly by Minister and owner
iii. failing agreement valuer nominated by RICS
The calculation of average price is set out in the Schedule to the order. It is based on the average price of a bovine animal across a selection of national markets. |
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BSE Compensation Order 1990 |
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Amends the above as follows:
1) For an affected animal, 100 per cent (rather than 50 per cent) of:
(a) An amount equal to (rather than half) of the market value; or
(b) The average price (rather than 125 per cent) in respect of the month . . . to nearest £1 (as opposed to £2 previously) |
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2) For an unaffected animal:
(b) 125 per cent . . . rounded to nearest £1
3) The average price is based on the returns for sales of commercial grade Friesian cows and heifers in milk and in calf (rather than on returns for bovine animals generally).
(Note: apart from the changed definition of 'average price', the only change for unaffected animals is that the 'ceiling' is rounded down to the nearest £1. There remains an inequality in compensation between affected and unaffected animals. The ceiling is 100 per cent of average price for the former, and 125 per cent for the latter.) |
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BSE Compensation Order 1994 |
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Amends the above as follows:
1) For an affected animal:
(b) the indicative market price (see (3) below) for the month in which the market value of the animal was determined;
2) For an unaffected animal:
(b) 125 per cent of the indicative market price for the month in which the market value of the animal was determined;
3) The indicative market price (IMP) is calculated using data in Great Britain relating to the month occurring two months before the date on which the market value was determined. The data are used to derive:
(i.) the average price for Friesian and Holstein cows in milk and in calf, first calving cows in milk and down calving heifers, in each case of first and second quality; and
(ii.) the average price for first and second quality barrener cattle of dairy breeds.
The IMP is a weighted average of these two figures, (i) being weighted by reference to the number of cattle aged less than 7 years when valued which were slaughtered as BSE suspects, and (ii) being weighted by reference to the number of cattle aged 7 years or more when valued which were slaughtered as BSE suspects. |
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