To ask the Scottish Executive whether it considers that the Bull Hire Scheme has made a positive impact on the quality of cattle produced in the Highlands and Islands since its inception.
The Scottish Government considers that the scheme at one time made a positive impact in terms of the maintenance of cow numbers, environmental benefits and local economic activity. However, the Scottish Agricultural College 2003 report (Bib. number 32088) concluded that the Bull Hire Scheme did not represent value for money in terms of genetic improvement of crofters'' cattle.
In September 2007, the Scottish ministers invited the Crofters Commission to undertake a formal appraisal of the investment that would be required to bring the facilities at Inverness up to scratch for a modern service. The options appraisal carried out by independent consultants is available on the Scottish Government website at www.scotland.gov.uk . The independent investment appraisal sets out detailed cost assumptions including estimated costs per hire of £2,318 (at 124 bulls). However, with an estimated current annual hire rate of 110 bulls, the appraisal''s hire cost forecasts, under different investment scenarios, rise to approximately £2,500. Beneficiaries should pay at least 50% of costs in order properly to satisfy state aids (de minimis) conditions. This results in the forecast charge of £1,250 quoted by me on 1 October 2008 (Official Report c.11309), an increase of 150% on current hire rates. Experience has shown that increasing charges results in significantly lower use of the scheme.
The Scottish Government did not consult formally on the future of the Bull Hire Scheme in advance of my statement, which responded to the Shucksmith Inquiry''s recommendations on its future. Veterinary issues were not seen as a major concern.