Archived press release

Top insurer says no to GM pollution cover. Government gambling with farmers livelihoods

17 February 2000

The UK's leading farm insurance company - NFU Mutual - will not offer farmers insurance against GM pollution Friends of the Earth (FOE) has discovered. The revelation is likely to be of major concern to farmers neighbouring GM farm scale trials. The issue is due to be raised in Parliament later today (Thursday) by Alan Simpson MP (Lab - Nottingham South) who earlier this week presented the Genetically Modified Food and Producer Liability Bill to MPs.

Friends of the Earth has obtained a copy of a letter (attached)from the NFU to a farmer in Lincolnshire. It says that loss of GM-free status, the potential loss of crops through cross pollination and the loss of the value of farmland (through GM pollution) is something the NFUM cannot offer insurance against.

FOE has frequently raised concerns about this issue and has called on the Government to move quickly to ensure that the biotechnology industry is strictly liable for any harm caused by GM crops.

Alan Simpson's Bill - which is being supported by FOE - places strict liability for harm caused to the environment and human health on the companies releasing or selling the GM crops or food. It also requires the companies to ensure that they have adequate insurance cover and to create a compensation fund [1,2].

The question of liability is firmly on the political agenda following the Biosafety Protocol agreement in Montreal last month [3], though no firm proposal was made. In Europe, GM liability may also be included in a key EU directive currently being revised in the European Parliament[4].

Pete Riley Biotechnology Campaigner of Friends of the Earth said:
“In the headlong rush to get GM crops in our fields and GM food on our plates the crucial issue of liability has been ignored. The Government must act and tell us who is going to pick up the bill if this new technology damages peoples health, livelihoods or the environment. The current Government position of doing nothing cannot continue.”

Peter Lundgren, Lincolnshire Farmer said:
“It seems that it will be left to individual farmers to sue their neighbours if their crops get contaminated with GM pollen. This will be extremely divisive and do little to foster harmony in rural areas. Anyone thinking of growing GM crops should think again.”

Alan Simpson MP said:
“The Bill I have presented to the House places liability where it should be - with the biotechnology companies. It protects other companies in the food chain including farmers from claims against them for harm caused by the biotech industry. This is a fair and reasonable legislation that the Government should support in the absence of an international protocol or EU legislation”.

NOTES TO EDITORS:

[1] Alan Simpson MP first presented the GM food and producer Liability Bill to Parliament in June 1999. It was re-presented on Tuesday 15 February .

[2] Alan Simpson MP is due to raise the issue of lack of insurance cover for farmers and the potential for the GM Farm-Scale Trials during Business Questions on Thursday 17th February 1999.

[3] The Biosafety Protocol agreed in Montreal on 29th January included a proposal to consider liability for harm caused by a genetically modified organism (GMO) during future rounds of discussions.

[4] The GMO deliberate Release Directive 90/220 is currently being revised. The European Parliament can include a clause placing liability on the biotechnology industry for any harm caused by the release or sale of a GMO. The final wording is expected to be agreed in April 2000.

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Published by Friends of the Earth Trust