AGRICULTURE Minister Nick Brown has confirmed a £40m package to restructure the pig industry in the next three years.

The money will mainly be used to encourage farmers to retire from the sector.

Mr Brown detailed on Monday how the Ministry of Agriculture would use a £280m boost to its budget by 2003/04.

The funds will be spent on:

Restructuring the pig industry

Waiving cattle passport charges for a further two years - until March 2004. The waiver is worth about £18 million a year to the industry

Extending the coverage of the Cattle Tracing System database from 40 per cent of the GB herd to 100 per cent

Seeking to reduce the number of cases of BSE to fewer than 30 by 2006

Replace Hill Livestock Compensatory Allowances with a new area-based scheme of support for hill farmers

£11million for fishing industry

An extra 30 million pounds for flood and coastal defences

England Rural Development Plan, particularly to protect more farmland and encourage organic farming

Maintaining the increased rate of grant under the Farm Waste Grant Scheme

Business advice to farmers and help to access the Internet to claim subsidies

Introducing a scrapie control programme.

But pig farmers have claimed the money is no help to them.

John Rowbottom, a leading pig farmer at Melbourne, near Pocklington, said: "It is a waste of time. He may as well not have bothered. It sounds a lot of money, for an industry like this it is nothing.

"A lot of it will go on helping people leave the pig industry, which is hardly helping its future."

Mr Brown also announced a £130m shake-up of the network of MAFF regional service centres and Intervention Board offices.

He is setting up a Common Agricultural Policy Payment Agency, based in Reading, which will deal with farmers' subsidy claims by internet. It will also have offices in Northallerton, Exeter, Carlisle and Newcastle, each with about 250 staff.

Regional service centres in Worcester, Cambridge, Bristol, Nottingham and Crewe will be downgraded.

MAFF is aiming to be able to process 95pc of CAP claims via the internet by 2004.

Mr Brown said: "Farmers and traders will benefit from a reduction in red tape and more efficient and rapid processing of payments."

He promised "face-to-face" local contacts for farmers to help them use the internet.

But the Conservatives fear many farmers will not have the skills or internet access to claim on-line.

They stressed the regional service centres were "an absolute lifeline" to farmers.

MAFF estimates the changes will save 10pc in administering CAP payments by 2004.

PICTURE: FARMING TOUR: Pictured on a visit to the Scarborough area are, from left: Scarborough and Whitby MP Lawrie Quinn, Agriculture Secretary Nick Brown, and MEP Davie Bowie.