The British government launched an independent public inquiry into the BSE crisis yesterday, as beef farmers were told they would receive £85 million in compensation as an "exceptional, one-off" payment.
In a statement to the Commons, the Agriculture Minister, Mr Jack Cunningham, announced that the inquiry, headed by Lord Justice Phillips, would investigate the history, emergence and identification of BSE and the human form of the disease, CJD.
The inquiry will also examine the actions taken by the government, farmers and health experts in response to events up to March 20th, 1996, when the BSE crisis emerged.
Lord Justice Phillips has been asked to report back to the government within a year and the former prime ministers, Mr John Major and Baroness Thatcher, will be asked to open their personal files.
Promising a radical restructuring of the British beef industry, Mr Cunningham said the government's long-term aim was to reduce the scale of subsidies to beef producers. He warned farmers it was essential to plan for the future of their farms in the knowledge that there would be major changes ahead.
On the issue of compensation, Mr Cunningham said subject to approval by the European Union, the government would make use of £60 million in compensation for beef farmers who have suffered as a result of the strength of sterling. Another £25 million will be provided for farmers through increases in the Hill Livestock Compensatory Allowance next year.
He said the government agreed with those who had been arguing that "a national human tragedy of this importance, taken together with the economic and other disruption that has ensued, requires a full, independent assessment".
Welcoming the compensation package for beef farmers, the president of the National Farmers' Union, Sir David Naish, said the union would offer its full support to the inquiry.
However, Sir David said the investigation should not be used to delay the lifting of the EU ban on British beef exports.
"The lessons learned from a properly constituted inquiry will of course be worthwhile. But it should not degenerate into a political point-scoring exercise as to who was to blame," Sir David added.
However, Mr Bob Parry, the leader of the Welsh Farmers Union, whose members blocked the ports of Holyhead and Fishguard to Irish beef in recent weeks, criticised Mr Cunningham's proposals. Mr Parry insisted last night that Mr Cunningham should have gone to the EU to ask for all of the £980 million in compensation available to British farmers.