Northern Ireland-Fraud on TB Claims alleged.

Concerted action is needed against Northern Ireland farmers making dishonest claims for TB outbreaks in their cattle, a public spending watchdog stressed today.

The call came along with a warning on the "very high" risk of fraud within the current system.

TB in cattle herds here cost taxpayers £199m in a single decade, with the expenditure by the Department of Agriculture covering the 10 years up to 2006.

This included some £86m in compensation to farmers for the compulsory slaughter of their animals and £54m paid to private veterinary practices contracted to test herds.

The statistics were detailed in a report published today by the watchdog Northern Ireland Audit Office. It stated that at least a quarter of the 25,000 cattle herds here have had Bovine Tuberculosis (bTB). At December 2007, around 1,600 herds — just under 7% — were under disease restrictions.

"From 1997, there was a significant increase in the prevalence of bTB in herds in Northern Ireland, rising from just under 5% in 1997 to a peak of some 13% in 2002," the report said.

By mid-2003, the Department of Agriculture acknowledged that Northern Ireland had the highest levels of the disease in Europe.

"By 2007, herd prevalence had reduced to just under 7%, although this was still significantly higher than the 1997 level," the Audit Office said.

The report said that the compensation rate for farmers was increased across the UK in 1998 from 75% of the cattle’s market value to 100%.

The department noted at the time that this would make having a positive test for bTB — called a reactor — more desirable and increase the temptation to invent results or import the disease.

"It is notable that the move to 100% compensation coincided with a substantial increase in the number of reactors," the Audit Office said. The department has stated that the rise in cases was due to a number of factors and the compensation change may or may not have influenced the figures.

The most common form of fraudulent activity involves interference with bTB testing.

In one case cited in the report an irritant drug was used to fake symptoms. This led to a prosecution in 2004, and a £3,500 fine. The following year, the same farmer received £3,400 compensation for a subsequent outbreak.

"Although there is suspicion within the department as to the presence of fraudulent claims for bTB compensation, only eight cases have been investigated and, to date, there have been only two prosecutions," the Audit Office said.