The Scottish Association of Meat Wholesalers (SAMW) is calling for action as Food Standards Scotland (FSS) increases the charges levied on the sector.
The cost of an Official Veterinarian (OV) has jumped by 20%, and there is a 17% hike in Meat Hygiene Inspector (MHI) fees, which SAMW said is posing a ‘significant challenge to our industry given the current economic climate within which it is operating’.
FSS said the reasons for the rise is due to agreed pay rises for staff and an increase in agency costs to fill OV and MHI vacancies. They also state additional pressures have been brought on by the EU Exit, as they had to increase OV pay to incentivise new staff to work in Scotland. Plus, changes are needed to ensure compliance with the government’s 35-hour week plan.
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The government offers a ministerial discount to smaller plants, which means 13 of the 30 plants in Scotland receive a 75% subsidy, equating to a £14.25/hour charge for an OV compared to the full cost of £58.15/hour. This discount costs a total of £1.07m of public funds, and FSS states that every meat plant receives some level of support.
SAMW is calling on the minister for public health, to ensure comprehensive transparency regarding the costs associated with the charge rates while also considering augmenting a discount to counteract the cost escalations.
SAMW chief executive Scott Walker said: “As the first invoices will soon be issued, we have once again reached out to the Minister, urgently urging a delay in the implementation of these new charge rates.
“A significant portion of the rise in this year’s charge rates can be attributed to Scottish Government policies, including the forthcoming implementation of the 35-hour work week, and the pay award increases spanning from 2023 to 2025. It’s important to recognise that these factors are beyond the control of our industry. As they do not mirror the commercial realities within meat plants, it becomes imperative to seek additional support through this year’s Ministerial discount funding.
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“In the face of escalating costs, our customers rightfully expect us to explore every avenue to mitigate these increases through cost-saving measures. We maintain steadfastly that any cost escalations in FSS charge rates should be met with corresponding efforts to offset them. As it stands many plants may simply not pay the increase when faced with the invoices calculated at the new charge rates.”
A spokesperson for Food Standards Scotland (FSS) said: “We acknowledge that, while no plant pays the full cost due to the Ministerial discount, the increases to the charge rates are significant.
“We have been engaging with SAMW representatives since early March and have provided a detailed breakdown of the costs and rationale to industry to ensure full transparency. We have also, where requested, provided individual Food Business Operations with further breakdown of how their charges are calculated.”
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