Dioxin costs Belgium almost $1 bn

[Neil Tangri <ntangri@essential.org>]

Dioxin seen costing Belgium $899 mln -
                govt source

                EU: September 15, 1999

                BRUSSELS - Belgium's crisis over dioxin
                contamination in food is set to cost the country's
                Treasury an estimated 35 billion Belgian francs ($898.8
                million), a government source said yesterday. 

                Budget Minister Johan Vande Lanotte said earlier this
                month that measures taken to resolve the problems caused
                by contamination of animal feed with the carcinogenic
                chemical dioxin had cost nearly 26 billion francs.

                But a government source told Reuters on Tuesday that the
                government had made provisional estimates for additional
                costs amounting to some nine billion francs.

                These included six billion francs in lost income tax
                revenues, one billion francs in lost social security income,
                and two billion francs for chemical testing and fees paid to
                veterinarians and accountants.

                That would bring the total cost to around 35 billion francs,
                confirmed the source, who spoke on condition of
                anonymity, adding that these figures were still "very
                provisional".

                These latest estimates are, however, still way below initial
                forecasts made at the time of the crisis in May.

                In June the government predicted the scare could cost the
                state up to 60 billion francs.

                The crisis prompted scores of countries to ban Belgian food
                imports, hit farms and food producers and contributed to the
                defeat of the previous centre-left government in June
                elections.

                It has also threatened to derail Belgium's debt-cutting
                programme which forms part of its commitment to
                European Economic and Monetary Union (EMU), launched
                this year.

                Belgium has one of the highest debt-to-GDP (gross
                domestic product) ratios in the European Union.

                In late June, outgoing Budget Minister Herman Van
                Rompuy said early measures taken to resolve the dioxin
                crisis had already eroded four billion francs off an expected
                2000 budget surplus of 10 billion francs. 

                Story by Alistair Thomson 

                REUTERS NEWS SERVICE