Powdered milk fraud uncovered

Fraud involving the falsification of skimmed milk powder has been outlined by the Fine Gael MEP, Mr Joe McCartin.

The fraud, in which farmers substitute "unacceptable substances" for skimmed milk powder, on which they then claim grant aid, was uncovered by EU tests in the late 1990s.

The EU produces 1.25 million tonnes of skimmed milk powder annually, about 40 per cent of which is disposed of as animal feedstuffs. In 1997 the EU paid #386 million to farmers in skimmed milk subsidies. Mr McCartin said tests in one member-state had revealed contamination of the milk powder in 20 per cent of cases.

While the level of fraud is not known, dumping 20 per cent of skimmed milk product would cost about #80 million a year.

The fraud was uncovered by the Court of Auditors, which reported to the European Parliament's budgetary control committee. Speaking on behalf of the committee in Strasbourg yesterday, Mr McCartin said the EU Commission had now moved to recover money from farmers.

There is a need for traditional measures to tackle overfishing in the interests of conservation, the Fianna Fail MEP, Mr Pat "the Cope" Gallagher, said yesterday in Strasbourg.

Mr Gallagher said the policy of reducing the fishing fleet had not been implemented evenly across the Union and questioned the assertion that the policy was successful in reducing fishing capacity.