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European approval for compensation scheme

A £9million compensation scheme for Welsh sheep farmers to deal with the effect of last year's foot and mouth outbreak has been approved by the European Commission.

However, farmers will only be paid £2 per sheep after the commission decided the Assembly's proposal based on payment per hectare might result in over-compensation.

Rural affairs minister Elin Jones said: "I made clear in February that the detail of the scheme would require clearance from the European Commission. I also said that we could expect the commission to carefully scrutinise our proposed scheme.

"The Assembly has now secured the commission's clearance to a revised compensation scheme for LFA sheep producers. This will take the form of a £2 payment per sheep and is estimated to cost £9m."

Under state aid rules the European Commission had to clear the proposed compensation scheme for farmers in Wales' less favoured areas, which was announced in February.

Payments were released from April 18th, based on the data provided in Single Application Forms lodged last May, subject to the form successfully completing administrative checks.

The Welsh Assembly provided £3m for a light lamb scheme last year.

6:39pm Monday 28th April 2008

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