News story

15th March 2001

Foot & Mouth - Compensation

Northavon MP Steve Webb has launched a bold plan to help save dozens of local businesses threatened by the current outbreak of foot and mouth disease. The MP has taken action after being contacted by a number of local businesses who risk bankruptcy if the present crisis continues for long. Many of these are essentially viable businesses and would be likely to recover once the restrictions were over, but who may not survive that long. Now, the MP has drawn up a plan for the Government to make interest free loans to businesses to help them through their present cash flow problems and to ensure that they are still there when the countryside returns more to normal. The idea was prompted by conversations with Coalpit Heath businessman Paul Baber of “Style Products” who manufactures and sells equestrian clothing and equipment for horse and rider. The business is fundamentally sound but has been threatened in the short term by the cancellation of the Badminton Horse Trials which has left Mr. Baber with large amounts of unsold stock.

Steve Webb said: “The effects of the foot and mouth crisis are being felt in a wide range of businesses in our local area. It is no good offering compensation when the outbreak is all over, because many local businesses may not survive that long. Many are basically sound businesses which have a real future if they can be tided over the present difficulties. If the Government were to make available interest free loans this would help businesses through the real cashflow problems which many are facing. In the long term this must be cheaper for the Government than letting local businesses go to the wall.”

The MP said he would now be sending urgent details of his plan to Agriculture Minister Nick Brown, and would be seeking an urgent response. He would also try to gain the support of other MPs for developing the blueprint into an effective rescue package.


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