By Andrew Arbuckle, farming editor

PROPOSALS PUT forward last week by the Department of the Environment, Food and Rural Affairs on a future subsidy scheme for England were yesterday described as having the potential to de-stabilise the whole United Kingdom sheep industry.

Speaking to the annual meeting of the Scottish committee of the National Sheep Association, John Thorley, the organisation's chief executive, stated, “England has brought forward the worst possible deal that could be organised.”

Mr Thorley’s serious worries at the English proposal which will, over an eight-year period, shift existing subsidies into an area-based payment, was born out of a belief that it would hit the progressive sheep farmers.

There would be major re- distribution of support cash if the English proposal went ahead, he added, and yet this was against the stated wishes of both Franz Fischler, the European Union Agricultural Commissioner, and Margaret Beckett, the UK Minister at the head of DEFRA.

He also believed the English proposal could see many farmers exit from beef and dairy production into the sheep sector and this would totally upset the fragile supply/demand balance that exists in the marketplace.

With many of Scotland’s top sheep farmers present, he warned that the English proposal would have repercussions north of the Border as well as in Wales

Both Scotland and Wales have opted for the new subsidy regime to be based on historical payments and this was praised by Mr Thorley, who viewed this option as preferable as it would cause fewer ripples both in the marketplace and within the industry itself.

He indicated that the NSA would be campaigning against the English proposal, both within the UK and also at Brussels. The NFU of England and Wales is also against the announced changes and the 10,000-member NSA would be co-ordinating action with them.

“I cannot see how it can be left as it is. There are far too many people going to be disadvantaged.

“We have no option but campaign very hard for change.”

Mr Thorley blamed powerful voices in the English environmental lobby and, more surprisingly, in the vegetable industry for the move to an area-based payment.

The latter body could see considerable advantages, he claimed, as they would, by the end of the changeover period, be receiving around £200 per hectare whereas previously they were totally unsubsidised.

The NSA is known for its trenchant views and when Mr Thorley moved his ground to deal with the fallen stock scheme, he expressed a firm view that this would not be in place for this year’s lambing season.

The original starting date for this scheme, which will see a national scheme for collecting all animals that die on farms, was the beginning of this year.

Mr Thorley said there had been a number of delays and he believed there were still a number of “political and practical aggravations” that might hinder its arrival in the coming months. “We will be lucky to see it this season.”

Dealing with marketing issues, Mr Thorley reported that the NSA was pushing new initiatives that could increase the market for mutton. The unlikely supporter of this rather neglected sector of the sheep meat trade is Prince Charles, who is reported to have expressed a taste for this meat from older sheep.

The NSA is working with a number of leading chefs and restaurants in putting mutton back on the menu.

Most of the ewes in this country head for the ethnic market after their working life is complete. This new initiative did not need to clash with that trade, he said, as that part of the market was often just interested in thinner sheep.