SFAC – MHS Charges Meeting

In attendance: President Stuart Christie, Past Presidents Hamish Deans, George Jarron,Jamie Chapman, John Chapman and Douglas Scott
SFAC representatives Graeme Millar (Chairman), Charlotte Maltin and Jim Wildgoose. Andy McGowan (QMS) Penny Johnstone (NFUS)

SFMTA welcomed the meeting that was called to give SFAC an incite into the difficulties faced by smaller abattoirs facing proposed increases in MHS charges. The inefficiency and bureaucracy of the MHS is something that has troubled small abattoir operators for a number of years and this proved to be a worthwhile forum for airing views that will hopefully be acted upon by SFAC to ensure the continued viability of the sector.

HD said that small abattoirs are a different operation from the large abattoirs and it is difficult to generalise.

At moment we pay on a unit basis. Galashiels contributes 32% of MHS cost, government is picking up rest.

Medium sized abattoirs provide a service to local farmers, auctioneers and local butcher.
It should not be forgotten that these abattoirs give the consumer choice.

There are wide implications with increased charges, the main worry is that plants haven't previously needed to be concerned about MHS inefficiencies. Now the Vet is costing more than two Meat Inspectors. OV become too clerical.

Seriously, OVS tendering process restricts ability of local vets to tender for contracting.

Jamie C – Variability of numbers coming from the market and how demand is reacting makes it hard to predict the number of hours small abattoirs require MHS to be in attendance.
30hr killing time v 75hr inspection time – this is disproportionate

GM – observed kill time is dependent upon buyers at mart.

JW – What kind of relationship with MHS?

Jamie C – Meat Inspectors – good
Vets – not so good

MHS time is booked 14 days in advance and committed. This is paid whether or not utilised. No flexi time.

HD – Inspection has become too documented, too regimented. Common sense has gone out the window. Regulation is paramount.

GM- Are meat inspectors and vets listening?

HD – York and superiors are the difficulty.

GJ – Vets do not earn their money, represent poor value for money and they are unproductive for large parts of their day.

GM – MHS is trying to change. Industry is trying to be flexible but it appears that bureaucracy impedes that and is contrary to the Better regulation agenda. Cost is borne 30% by industry – 70% by taxpayers

HD – Vets part is hugely inefficient because they have been taken off the line. The whole industry is looking over its shoulder. Meat inspector used to work with abattoir to produce best possible meat. Now they are head to head, practically in open warfare. Often the same personnel but a much worse relationship.

The geographical areas (Two for whole of Scotland) are too big for vets to operate efficiently under the Cluster contracts – ill advised.

HD – Where there is more than one meat inspector that should be determined by the speed of the line.

GM – Lots of inefficiencies. No matching of resource to the real demand.

CM – Practices endanger food safety where inspectors go to find person to trim. Where is the point when Meat Inspector becomes 100% involved?

HD – Units above 300 cattle units.

GM – Geography creates inefficiency. Clusters are not optimum way to treat Scotland. If cluster contractors are not making money then contractors could be asked to re-organise clusters.

Euro -exchange rate set on 1st September also works against the industry. The SRM levy can be rejected on grounds that SRM controls are a public health measure.

HD – Why leave the headage scheme?

GM – McLean formula substantially suppressed charges. Cost has increased, charges have not. It has been a ministerial fudge.

HD – Abattoirs are not as busy now and not able to cover costs as easily. No export now takes place. At that time inspection charges took only 5-7% more than Local Authority charged costs. Overheads were not covered.

GM – How can we justify the taxpayer paying 70% of inspection charges?

HD – Not value for money for the taxpayer.

GM – Cost of running MHS has reduced £12m so far as a result of the MHS Transformation Project.

CM – Food Business Operators have responsibility for Food Safety. Clearly the overheads of running MHS is over excessive.

John C- The real requirement is Meat Inspector 371/2 hours and Vet 2 hours

JW – Clearly veterinary costs are the most difficult to manage. There is a need to manage efficiency of vets much better.

SFMTA: We as an industry will not agreed until satisfied MHS is transformed. MHS is viewed as disproportionate and inefficient. Industry will pay the fully efficient and proportionate costs.
HD – Why charge more than EU minimum?

JW – Just a minimum that implies a level of government subsidy.

CM – Each FBO has own HACCP plan. Is there any benefit of a locally run inspection system?

GJ – Increased charges will mean that small abattoirs cannot remain viable. We don't want to pay for inefficiency of MHS. There should be no increase above inflation.

GM: In the consultation there is scope to say that proposals can be deferred until 2010/2011. SFAC will prepare a submission for FSA in the Scottish context.

See the functionality of meat inspectors and vet, think of that in terms of what we are trying to achieve. Use HACCP but what is the overhead that overlays all this. Concern is that we are paying too much for MHS overheads.

Lower throughput abattoir's (SME's) are different therefore different set of arguments that mean these need to be viewed in a different way. We could feel that this does not come through in consultation document.

These abattoirs have less capacity to absorb costs, address the business model issue.
There needs to be a more flexible approach. Not necessarily more expensive. Need to be accurately charged for time therefore more akin to headage basis.

GM concluded that there needs to be much better dialogue between industry and MHS.

DS and JC will attend stakeholder meeting on MHS charges on Friday 6th March at 12.30pm at Hilton Edinburgh Airport Hotel.