Scottish Government

ANNEX A
PARTIAL REGULATORY IMPACT ASSESSMENT

Title of Proposal

The Equine Identification (Scotland) Regulations 2009.

1. Purpose and intended effect of measure

Objective

To implement Commission Regulation ( EC) 504/2008 of 6 June 2008 which updates and replaces Commission Decisions 93/623/ EEC and 2000/68/ EC and implements Commission Decisions 90/426/ EEC and 90/427/ EEC.

The main change under the proposed legislation is the requirement for the current identification passport to be linked to the animal by implantation of an electronic microchip. This will reduce the human health risk by providing a link between the equine and its passport, thus preventing equines treated with substances not intended for food producing animals from entering the food chain.

The UK must implement the Regulation in order to avoid costly infraction proceedings, to protect the horsemeat export trade and to retain the use of key equine medicines.

Background

The Horse Passports (Scotland) Regulations have been in force since 2005. The domestic Regulations transpose Commission Decisions 92/623/ EEC and 2000/68/ EEC, which concern the identification of equidae. Horse Passports are essentially a human health measure to ensure that horses do not enter the human food chain if they have been treated with substances not suitable for food chain animals or if the set withdrawal period has not elapsed. There are risks to human health if these unsuitable substances are consumed. For example Phenylbutazone, which is the most commonly used equine medication, has been shown to cause aplastic anaemia in humans. Aplastic anaemia is a very serious auto immune condition which left undiagnosed may cause death within six months. Phenylbutazone has been detected on a few occasions following post slaughter carcass residue checks carried out by the Food Standards Agency. These positive test results clearly show the need for strengthened food safety controls in this area.

The main provisions of the current legislation are:

• All owners must obtain a passport for each equine they own. This includes ponies, donkeys, and other equidae (but not zebra and other exotic equidae). Equines must not be sold, exported, slaughtered for human consumption or used for the purposes of competition or breeding without a passport;
• Passports are issued by Passport Issuing Organisations ( PIOs) who are approved under European legislation (Commission decision 92/353/ EEC);
• Owners must declare whether or not animals are ultimately intended for human consumption by signing the relevant Declaration in the horse passport if:

1. banned drugs are administered to the animal,
2. the animal is exported, or
3. the animal is consigned to slaughter;

• A declaration stating that the animal is not intended for human consumption cannot be reversed;
• Equidae are identified in the passport by means of a completed silhouette (diagram showing the distinguishing marks of an animal) which is completed by a veterinary surgeon or a person deemed competent by the PIO. Some breed societies require members to have their horse microchipped in addition to completing a silhouette;
• An exemption from the passport requirement is provided for semi-feral equidae residing in designated areas;
• The current legislation is enforced by the Meat Hygiene Service at slaughterhouses and by Local Authority Trading Standards Departments in other areas.

The use of microchips provides a method of identification that is both recordable and traceable over the current silhouette identification method. A microchip has a unique reference number attached to it which will be recorded on the horse passport, the passport issuer's database and the central National Equine Database. It is not possible to currently record silhouette details in a database or conduct a search based on these details. Because of this issue, many equine owners already microchip their animals to aid recovery in the event of an animal becoming lost or stolen. In addition, Thoroughbred Racing, Equine Competition/Events and many Pedigree Breed Societies currently require equine to be microchipped under their rules. The main impact from this change to the regulations will therefore fall on those equine keepers who currently do not microchip their animals.

Rationale for Government Intervention

The intended effect is strengthened controls in the area of equine identification thus demonstrating that the UK can effectively ensure that equines treated with unsuitable medicines do not enter the food chain. The benefits of such controls are that the UK continues to have access to inexpensive and commonly available veterinary medicines, which may not be suitable for food chain animals. Additionally, this measure will ensure that the UK can continue to export horse meat within the EU. There are associated welfare benefits in that this method of disposal allows horses to be sold for slaughter at the end of their useful lives rather than owners paying for expensive disposal costs.

Risk Assessment

The Regulation is directly applicable to all Member States and the UK must transpose its requirements into domestic legislation. If Scotland does not implement and enforce the Regulation, we would face infraction proceedings which are very costly both administratively to Government in dealing with the process and if the UK is subject to financial penalties.

Scotland could potentially lose access to cheap veterinary medicines and be unable to export horse meat. In addition, other Member States may refuse to permit horses to enter their country if they are not identified in accordance with European rules.

It may be harmful to humans to eat horsemeat if in the last 6 months of its life the horse had been administered veterinary medicines for which no minimum residue limits have been set or if it had been administered with a medicine which should never be given to a food-producing animal.

Consultation

Within Government - The following Government Agencies/Departments will be included in the consultation: the Chief Veterinary Officer for Scotland, CoSLA, Scottish Government Animal Health and Welfare Division, Scottish Government Public Health Division and the Food Standards Agency Scotland.

Public - The consultation package will be distributed to Passport Issuing Organisations, livery yards, equestrian groups, welfare organisations and Edinburgh Zoo.

A full consultation list can be found at the end of this document.

Summary of Options for Implementation in Scotland

Under the EU Regulation, several derogations are open to the Competent Authority. These are set out in the section following the Option summaries.

Option 1 - Use of all existing derogations

This option would provide for the use of all derogations within the legislation regardless of any costs/benefits to the Industry. All available derogations have been included within the consultation document.

This may not be the best option but consultation responses along with Industry and Policy view will help determine whether all derogations should be used regardless of cost/benefit.

Option 2 - Use of some derogations

This option would allow for the use of only those derogations that are of benefit to Industry or are seen as necessary by veterinary staff or policy.

This may prove to be the best option as consultation responses may provide evidence which shows that the use of all derogations may not be of benefit to Industry or may increase unnecessary burdens/costs on keepers.

Option 3 - Use of no derogations

This is unlikely to be the chosen option as we are aware that there are some derogations available that are currently made use of by horse keepers.

Option 4 - Non-implementation

This is not an option since it would be incompatible with Scottish Ministers' obligations under the Scotland Act 1998 which requires complete implementation of EU legislation.

Summary Table of Options

*Figures derived from total estimated cost at UK level, assuming that 10% of the cost/savings can be attributed to Scotland. The results of the consultation should help determine more accurately the actual costs to the Scottish equine industry.

UK figures have been obtained from Defra following their consultation with British Equine Trade Association, British Equine Veterinarian Association and World Health Welfare.

Cost to Owners

It is estimated that 50% of new born foals within the UK require microchips to comply with Breed Society/Weatherby Rules. It is assumed that 70% of foals that are not currently microchipped would have a silhouette completed by a vet. There is no additional cost for these foals under the new Regulations as the cost of a microchip is comparable to the cost of a silhouette completed by a vet. The remaining 30% of silhouettes are completed by an authorised breeder/identifier at an average cost of £23 per horse. It is estimated that the owners of these foals will be affected by an increased cost of £37 per animal due to the cost of microchipping by a vet.

Derogations

The Articles referred to within this section can be found at Annex B - Commission Regulation ( EC) 504/2008.

1. Article 5.6 allows for a limitation on the maximum permitted period for identifying an equine animal to six months.

Currently, the identification of an equine must take place on or before the 31 December of the year of its birth or by six months after its birth, whichever is the later.

Cost/Benefit: We do not expect there to be any additional cost to a keeper from this derogation. The derogation would allow a standard identification period for all keepers which provides them with a six month period in which to identify their animal. It would also avoid confusion on when to identify the animal by providing a consistent time period for all keepers. The benefit found from not applying the derogation is for those keepers that would benefit by potentially having up to 12 months in which to identify their animal and would remain consistent with current practise.

2. Article 6 allows for an equine to no longer require certain information in the outline diagram or identification document if the animal has been implanted with a transponder (Points 3 (b) to (h) of Part A of Section 1 and points 12 to 18 in the outline diagram in Part B of Section 1 of the identification document), or a photograph or print displaying details sufficient to identify the equine animal may be used instead of completing that outline diagram.

Currently, an equine is identified by both a horse passport which records points of identification and information, in conjunction with a drawn silhouette of the animal.

Cost/Benefit: From UK figures, it has been estimated that 75% of equine keepers may need identification only passports with no silhouette. Cost estimates have shown that a silhouette may cost £7-10 more than the cost of inserting a transponder. The use of this derogation could therefore save the UK horse Industry £170,000 - 180,000 per year.

However, it will be for individual PIO's to decide if they wish to continue with silhouettes.

3. Article 7 allows for those equidae constituting defined populations living under wild or semi-wild conditions in certain areas, including nature reserves, to be identified only when they are removed from such areas or brought into domestic use.

All areas and populations must be notified to the Scottish Government before making use of the derogation.

Currently, we are aware that there may be some wild/semi-wild populations within Scotland but exact locations or numbers involved are unknown.

Cost/Benefit: As population figures are unknown, costs may not be calculated at this time. It would be expected that the identification cost for one equine would be in the region of £60 for a microchip and passport, however, the cost of microchipping may be reduced to around £20 if a veterinary surgeon has been called out for another matter such as vaccinating the foal.

4. Article 11.2 allows for the authorisation of the transponder to be implanted at a different place on the neck (from the area of the nuchal ligament) of the equine animal, provided such alternative implantation does not compromise the welfare of the animal and does not increase the risk of migration of the transponder compared to that with the nuchal ligament.

Currently, equines do not require a microchip. The view of the Royal College of Veterinary Surgeons is that implantation is an act of veterinary surgery and should therefore be carried out by a veterinary surgeon.

The benefit of requiring a veterinary surgeon to carry out the implantation procedure is to ensure the welfare of the equine, to ensure that the microchip is placed in a location where it cannot migrate and the veterinary surgeon can also examine the equine to ensure that it has not previously been identified by a microchip.

Cost/Benefit: It is estimated that the cost for microchipping an equine is in the region of £60 unless the procedure is carried out as part of a routine veterinary visit where the cost could reduce to £20.

It is estimated that there are 1.35 million equines in the UK with around 100,000 of these located in Scotland. From this population figure it is estimated that an additional 20,000 foals within the UK or 1,480 in Scotland will require a microchip each year. The cost for this is £88,800 at full cost estimate or £29,600 if part of a routine veterinary visit.

5. Article 12.1 allows for equidae to be identified by a suitable alternative method, including marks, that provide equivalent scientific guarantees that, alone or in combination, ensure that the identity of the equine animal can be verified and that effectively prevent the double issuing of identification documents (alternative method).

Currently, we are unaware of any suitable alternative and therefore cannot estimate the costs of using this derogation. If the equine identification consultation does produce an alternative method, costs would be calculated by using the expected number of foals born each year, which is 1,480.

Cost/Benefit: Presumably any alternative method found would be at a reduced cost to the Industry. If it was deemed appropriate to make use of this derogation, it would only be done on the provision that there were no welfare implications, no increased burden on the Industry and the scientific guarantee was proven.

6. Article 14.1 allows for the movement or transport within the same Member State of equidae that are not accompanied by their identification document, provided they are accompanied by a smart card issued by the body that issued their identification document and containing the information set out in Annex II (Certificate of Origin).

Currently, an alternative method of identification is not used other than the horse passport.

Cost/Benefit: As smart cards are not currently used by the Industry, we are not able to provide the costs or an estimated number of users. The use of this alternative may be developed for use by the Industry over time.

7. Article 15.2 allows for the transportation of an equine animal for slaughter which has not been identified in accordance with Article 5 (identification document), directly from the holding of birth to the slaughterhouse within the same Member State provided that it is less than 12 months of age and has visible dental stars, there is uninterrupted traceability from the holding to the Abattoir, during transport the equine has a transponder or other marking, or the move is accompanied by the food chain information.

Currently, there are only two Abattoirs in England that accept horses and none in Scotland.

Cost/Benefit: UK figures estimate that 500 foals move direct to slaughter each year. Calculating this against Scottish population figures it could be assumed that 35 foals or less would move to the Abattoirs in England. This could save identification costs of £2,100 per year or £60 per foal (at highest cost) for Scottish keepers.

The reduction in costs to the keeper is the main benefit along with the removal of any paperwork burden for the passport. Adhesive stickers may be found to be an identification option for these animals which are thought to cost around £2 per sticker.

8. Article 16.2 allows for the suspension of an equine animal's status as intended for slaughter for human consumption for a period of six months where the keeper can satisfactorily demonstrate within 30 days of the declared date of loss of the identification document that the equine animal's status as intended for slaughter for human consumption has not been compromised by any medicinal treatment.

Currently, where the identification document has been lost and a replacement has been applied for, section IX of the replacement document shall be marked as not intended for slaughter for human consumption.

Cost/Benefit: In the UK, the cost savings from this derogation could be as high as £2m per year over the cost of disposal where 4,200 equines are slaughtered for food each year within the UK. A keeper may sell their equine for slaughter at the end of its useful life for between £200-£500 whereas disposal costs may be in the region of £100 to £1000 depending on the method used. This could save Scottish keepers a total of £185,000 per year using Scottish population estimates.

Those keepers transporting their own animals will also have the additional costs of fuel and time to factor in depending on where the equine is located within Scotland. It is estimated that this will cost between £0.75 and 1.00 per mile. Those keepers that do not transport their own animals will have additional haulier costs which are estimated at £1.50 per mile. These are existent transport costs, however and not additional costs due to the change in Regulation.

9. Article 19.4 allows for the implementation of procedures to return the invalidated document (passport) to the issuing body.

Currently, it is a requirement for the passport to be returned to the passport issuer so that it can be marked as invalid upon the death of an equine. It is also a requirement for that passport issuer to cancel the returned passport and the microchip if used on their database, which is then submitted to the National Equine Database.

Cost/Benefit: There is no additional burden on passport issuers other than the microchip number requiring cancellation.

There is an additional burden on Abattoirs who must conduct a pre-slaughter check for microchips and recover the microchip so that it is both removed for food purposes and cancelled in the database. If the microchip cannot be recovered then the carcass must be declared as unsuitable for food.

As it is expected that each microchip is implanted in the same location and should not migrate, it is deemed unlikely that a microchip will not be able to be recovered. The aim of microchip recovery is to prevent its fraudulent re-use.

Additional Changes

10. Where an equine has been marked with a previously implanted transponder which does not comply with the current standards, the name of the manufacturer or the reading system shall be inserted in the identification document.

Cost/Benefit: No additional cost. Those keepers that have previously microchipped their equine can benefit from not having to re-microchip their animal to current standards at additional costs.

11. The identification document need not accompany equidae when they are: a) stabled or on pasture and the document can be produced without delay, b) moved temporarily on foot either in the vicinity of the holding so that the document can be produced within 3 hours or during transhumance from summer grazing grounds and the document can be produced at the holding of departure, c) unweaned and accompany their dam or foster mare, d) participating in a training or test of an equestrian competition or event which requires them to leave the venue or e) moved or transported in an emergency situation relating to the animal themselves or to the holding on which they are kept.

Cost/Benefit: No additional cost. There is a benefit to keepers by reducing the burden of having to carry the horses' identification document at all times.

12. Passports issued after 1 July 2009 are required to be in a new format which includes a certificate of origin for registered pedigree animals and a new Section 8 that suspends the passport in the event of a disease outbreak and where the premises are subject to a prohibition order.

Cost/Benefit: The benefit of a certificate of origin is that valuable breeding details can be recorded within the passport ensuring that details are not lost.

A veterinary surgeon will be required to sign section 8 in the event of a disease outbreak. By doing so and restricting the movement of equines, the risk of disease can be limited and the spread of disease reduced. This will have the benefit of helping to protect the equine population as a whole.

The cost for updating passports will vary between issuers as some produce their own whilst others obtain them from a printing company. It is expected that a one off cost will be incurred for the update which is likely to be passed on to equine keepers/owners. It is thought that the increase will be in the region of £1-1.50 per passport. This increase is likely to cost the industry £65,000-97,000 per year using a UK estimate from 2007 where around 65,000 passports were issued.

13. The regulation introduces a new provision which makes it an offense to keep an equine which is not correctly identified.

Cost/Benefit: A keeper is defined as a person with responsibility for an animal, even temporarily. This therefore includes livery yards, welfare organisations, transporters and other people/premises that are responsible for the care of the horse. This does not include veterinary practices or clinics. It is the responsibility of the keeper to ensure that a horse has been issued with a passport before agreeing to undertake the care or transport of the animal.

It is not known how many locations there are within Scotland (or the UK) that keep equine. The British Equine Trade Association estimate that around 13% of equines are kept at part or full livery, or around 156,000 horses. Those people responsible for the care of equidae will need to ensure that the horses they are keeping are properly identified when the regulation comes into force and those older animals without current identification will need to be identified immediately. It is estimated that this initial cost to Industry will be in the region of £420,000. It is expected that the number of checks required will reduce to 15-16,000 in subsequent years at a cost to Industry of £40,000 per year within the UK (wage rate of £8/hr used).

14. All equines, whether domestic or non-domestic, must now be identified in accordance with the new regulations.

Cost/Benefit: Non-domestic equidae born at zoos or similar will need to be identified under the new regulations from 1 July 2009. Older non-domestic equidae will need to be issued with an identification passport prior to 1 July 2009 in order to avoid the need for microchipping.

Figures for Scotland are not known but it is estimated that there are 15-20 zebra or other non-domestic equidae born each year within the UK. The cost of identifying these animals will be in the region of £300-400 per year for zoos and establishments with their own vet and £900-1200 per year for those equidae on welfare reserves etc. assuming the full identification cost of £60. A one of cost for all older animals currently residing in zoos or similar within the UK is expected to be in the region of £10,000 if identified before 1 July 2009.

15. Equine that are permanently imported into the UK are required to be recorded/registered on the database of the appropriate issuing body.

Cost/Benefit: Owners will be responsible for registering their equine with the relevant approved breed society. If animals arrive that have not been identified by an EU compliant passport, the costs for identification and microchipping will fall to the owner.

There are around 16,900 horses imported into the UK each year with 15,000 arriving from within the EU. The cost of registering these animals onto the appropriate database is expected to cost in the region of £24,000 per year on the assumption that it will take 15 minutes per registration.

16. Papers for horses imported into the UK from third countries can be updated to meet the EU passport format.

Cost/Benefit: It is estimated that the charge for this service would be in line with those for replacement passports which cost around £15. Savings for keepers will be around £5-10 per passport. The equine will still require a microchip if they do not arrive with one.

17. Prior to issuing a new passport, a passport issuing organisation must verify that a previous passport has not been issued for the equine.

Cost/Benefit: The issuer will need to check their own database and the National Equine Database to verify that a passport has not already been issued for an equine. A microchip number will provide the easiest search reference. These checks will help to prevent the issue of duplicate passports and will therefore reduce the number of second passports that need to be cancelled by issuers.

The cost to the UK Industry each year is expected to be £180,000 when estimating a 15 minute check against 65,000 applications. This cost will decrease over time as microchip numbers become entered onto the database. Initial checks are based on name, address, etc. and therefore more of a burden on Industry.

18. Passport issuers are required to provide temporary documents to an equine keeper when a passport is returned for updating.

Cost/Benefit: The temporary document will be valid for 45 days and must include at least the UELN and microchip number of the equine. Equine may be exported within the EU on a temporary document provided that the animal is also accompanied by an Export Health Certificate. These certificates are issued free of charge and represent no increase in cost. It is estimated that around 98,000 passports each year are returned for updating at an additional cost to the UK industry of £196,000 (assuming £2 per update - 15 mins of PIO time).

A number of identification only passport issuers offer a 24-48 hour turnaround service. Given the time taken to produce and post a temporary document, it may not be necessary for these issuers to produce one provided they can adhere to their 24-48 hour turnaround timescale.

Small and Micro Business Test

All recognised breed societies and other organisations that issue horse passports are being consulted on the changes and costs involved. These organisations may pass on any costs incurred in full to horse keepers/owners.

Welfare and charity organisations that receive equines into their care that have not been properly identified will bear the cost of identification. It is not known how many horses are taken into care each year in Scotland but UK figures are estimated at 1,040 per year. As most organisations have vets on their staff or routinely have vets out to their premises when the animals arrive, it is expected that the cost per animal will be limited to that of the identification cost only, around £20, rather than the full cost of £60.

Legal Aid Impact Test

It is not expected that this new regulation will have any implication on an individual's right to access legal aid.

Test Run of Business Forms

No business forms will be involved in the implementation of the proposed legislation.

Any forms that may be required will be determined by individual Passport Issuing Organisations.

Enforcement and Sanctions

The Food Standards Agency is responsible for carrying out appropriate checks at slaughterhouses, which includes the information relating to veterinary medicines administered. Responsibility for other enforcement of the legislation rests with Local Authorities. In addition, the Scottish Government has the authority to withdraw recognition from any authorised passport issuing organisation that consistently fails to abide by the provisions of the legislation.

Consultation

A formal consultation will commence on 04 February 2009 and close 24 April 2009.

Summary and recommendation

Option 2 is the recommended option as it is thought to provide the most benefit for industry in terms of cost and burden. It is expected that some derogations may not be welcomed by industry, policy or veterinary staff and therefore it is essential that each derogation is examined on its own merit.

Declaration

I have read the Regulatory Impact Assessment and I am satisfied that the benefits justify the costs.

Signed

Date

Contact point:

Consultation List

Animal Health Offices
Appin Equestrian Centre
Ayrshire Equestrian Centre
British Horse Society
British Veterinary Association (Scotland)
Clydesdale Horse Society
Crofters Commission
Dryden Riding School
East Lothian Livery
East Lothian Pony Club
Eriskay Pony Mainland Society
Eriskay Pony Mother Studbook Society
Farm Animal Welfare Council
Farming & Wildlife Advisory Group
Food Standards Agency
Forestry Commission Scotland
Halymyres Stables
Highland & Islands Forum
Highland Horse Riding
Highland Pony Society
Highland Riding Centre
Houston Farm Riding School
Hyndshawland Farm Stables
Kilconquhar Castle Estate Equestrian Centre
Loch Leven Equine Practice
Lochhill Stud Farm & Equestrian Centre
Lomondside Stud & Equestrian Centre
Meat Hygiene Service
MEPs
National Fallen Stock Company
National Farmers Union
National Pony Society - Scotland
North Lammermuir Riding Club
Over Dalkeith Stables
Oxenfoord Equestrian Centre
Pony Breeders of Shetland Association
Road Haulage Association
Royal Highland & Agricultural Society of Scotland
Royal Zoological Society of Scotland
Rural Affairs and Environment Committee
Scottish Agricultural College
Scottish Association of Meat Wholesalers
Scottish Borders Donkey Sanctuary
Scottish Equestrian Association
Scottish Equine Breeders Association
Scottish Federation of Meat Traders Association
Scottish Icelandic Horse Association
Scottish Councils
Scottish Sports Horse
Scottish Wildlife Trust
Shetland Pony Studbook Society
Small Farms Association
SSPCA
Tannoch Stables
The Donkey Breed Society - DBS Scotland
The Trekking and Riding Society of Scotland
Thoroughbred Association
Women's Farming Union