Disease had 'positive' impact on farming
Trinity College academics Prof Alan Matthews and Ronnie O'Toole, writing in the current edition of the Irish Banking Review, noted that significant costs, however, were borne by the tourism and distribution sectors, as well as by taxpayers.
They called for a full inquiry, involving all stakeholders, to address all of the issues arising from the outbreak.
Using model simulation, the Trinity College academics reveal that, due to shortages of beef, pork and lamb on the British market, arising from foot and mouth there, agricultural prices here were 2.7% higher than would otherwise have been the case.
At the same time, manufacturing and service sector prices were between 0.1% and 0.4% lower.
In overall terms, the outbreak cost the economy 0.16% in lost consumption, according to Matthews and O'Toole. The tourism industry was particularly hard-hit with an estimated loss in international tourism receipts of 200 million alone.
The Government is estimated to have spent 100 million in tackling the problem. In addition, the loss of VAT revenue because of restrictions on cross-border shopping and trade is considered to have been significant although no estimates exist.
The overall impact of the 2001 outbreak was relatively modest, due to the speed and effectiveness of the control strategy put in place. But they point to the significant damage caused to some sectors, as well as to the importance to the economy of agriculture and trade, as grounds for a full inquiry of all the issues arising from the outbreak. "It is thus imperative to adopt an animal health strategy that minimises the likelihood and extent of future outbreaks."
