Opposition cool on 'cow tax' proposal

As Whitehall examines all avenues available to cut costs in the face of a mounting deficit, this week Defra unveiled its new Bill on Animal Health.

It proposes to hand control of animal diseases to a new independent group and states farmers who have not kept their farms to a certain standard of cleanliness would receive less compensation in the event of a outbreak of foot and mouth disease.

The Government spends 44m every year to prevent animal disease and prepare for outbreaks. The draft bill would see farmers pay half through a new tax on livestock. The 22m would be raised by putting a levy on different animals, from 4.80 for a dairy cow to 4p for a chicken.

But the Tories said it was premature to be publishing plans at this stage while the Liberal Democrats accused the Government of "passing the buck".

Tim Farron, the Liberal Democrat's shadow Defra Minister, said: "The Government wouldn't ask communities affected by swine flu to pay to cover the cost, so it's completely unfair that farmers are being forced to pick up the tab.

"The Government's decision to pass the buck is a disgrace. It's grossly unfair for Ministers to make livestock farmers pay, given the 2007 Foot and Mouth outbreak came from Government-licensed premises.

"Farmers understand the need to protect public health. But in the current economic climate there can be no justification for shifting the cost to livestock farmers."

Jim Paice, shadow farming Minister, said he could not guarantee a Conservative administration would implement any of the proposed changes and urged Ministers to wait for a report on the matter being compiled by Rosemary Radcliffe.

The National Farmers' Union has already expressed its doubts about the bill, questioning how practical it would be to implement and how fair it would be to all parties. Some in farming circles have already dubbed the proposals "the cow tax".

Defra Secretary Hilary Benn said his department's plans would better manage disease, reduce overall risks and cut costs at the same time.