Now burger giant bans British beef

THE BSE crisis deepened late last night when the hamburger chain McDonald's announced it was suspending the sale of British beef products in all its 650 UK restaurants, with immediate effect.

The move is the biggest public vote of no confidence yet in an industry crippled by consumer fears since the Government admitted the possibility of a link between BSE in cows and Creutzfeldt- Jacob disease in humans.

Paul Preston, the chief executive of McDonald's UK, announced the move after several days in which burger sales in fast-food outlets had fallen. "Our customers expect us to take a lead and we have." Other burger chains are likely to follow suit.

The company said that every year its British restaurants account for pounds 50m-worth of beef - half of it British

Hinting at a direct response to customer pressure, Mr Preston said: "We cannot ignore ... a growing loss of consumer confidence in British beef. We have always put our customers first. They trust us to provide high- quality, safe food. We believe that they want us to take this action in the circumstances."

The company's move came after a day in which thousands of shoppers gave their own verdict on the Government's assurances about beef safety - repeated yesterday by Douglas Hogg, the Agriculture Minister - by spurning the traditional Sunday joint in favour of pork, lamb or chicken. Supermarkets across the country confirmed that beef was largely off the menu, despite widespread price reductions. One London Sainsbury's ran out of lamb mince by 9.30am, although its beef shelves remained full.

Meanwhile, the Government is preparing to intervene in the beef market to save cattle farmers from disaster. Contingency plans for mass beef- buying are already being made by the Intervention Board, the body which, under the EU Common Agricultural Policy, buys beef from farmers when prices fall below specified levels.

The board is putting cold store companies on standby to handle new stocks; it currently has seven cold stores in Britain, but many more may be needed if beef prices keep falling.

Prices are likely to plunge if the 13 expert members of the Spongiform Encephalopathy Advisory Committee tell the Government tonight that beef is not safe to be given to children. They are in secret conclave all weekend at the Civil Service College in Sunningdale, Berkshire, and will report their conclusions to the Government's Chief Medical Officer, Sir Kenneth Calman. An announcement is expected in Parliament tomorrow.

John Major will see Stephen Dorrell, the Health Secretary, and Douglas Hogg, the Agriculture Minister, tomorrow to hear the findings. They will be joined by the Chancellor, Kenneth Clarke, to discuss price subsidy. This may present difficulties as the EU scheme is not geared to handle a price collapse in just one country.

The Government is also considering a selective slaughtering policy, as urged by European scientists on Friday, which would cull the older dairy cows that are most prone to BSE. Some senior Tory MPs are reluctantly coming to the view that the suggest- ed slaughter and incineration of animals born before 1989 may be necessary.

Further pressure on the Government to intervene will come from an emergency inquiry into the BSE scandal being mounted at Westminster on Wednesday, by the Commons Select Committees on Agriculture and Health. Richard Alexander, Conservative MP for Newark and a member of the Agricultural Committee, said last night: "There is grave anxiety, bordering on meltdown."

Labour yesterday mounted a ferocious attack on the Government, accusing it of "duplicity", "incompetence" and of "lacking in its duty of care to the public". Harriet Harman, Shadow Secretary of State for Health, blamed ministers for the confusion in public minds through their failure to ensure the correct questions were asked and answers given.