The Board agreed that:
• Full cost recovery should be introduced over a three-year period, beginning in April 2012.
• The consultation proposals should be amended to allow more small businesses to be included in the ‘low throughput’ category. The revised proposals mean that these meat plants would pay reduced charges in a tiered system, depending on the volume of livestock units or meat they process. For the first 1,000 livestock units processed, the reduction would be a maximum of 70% of the full cost charge. The next 1,000 would be subject to a 50% reduction. The next 3,000 would be subject to a 25% reduction. For meat plants processing more than 5,000 livestock units per year full cost charges would apply with no discount for any of the throughput.
• This would provide support of £3.2 million per year for about 570 establishments, as opposed to £1.4 million for about 420 establishments as originally proposed
The FSA Chair will discuss the Board’s decision with Ministers in all four countries of the UK. There is also a requirement to send an Impact Assessment for the opinion of the independent Regulatory Policy Committee.