Clause 78 - Power to establish boards

Part of Natural Environment and Rural Communities Bill – in a Public Bill Committee at 11:15 am on 5 July 2005.

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Photo of James Paice James Paice Shadow Minister (Environment, Food and Rural Affairs) 11:15, 5 July 2005

I agree with the remarks made by the hon. Member for Sherwood (Paddy Tipping). He has taken the opportunity to raise the issue under the first clause in this chapter of the Bill. A couple of amendments that I have tabled will be discussed in relation to clause 88, although they touch on the point that he has raised. Perhaps now is the right opportunity to discuss the general point, and I agree with him. I hope that the Minister will take the opportunity to discuss it.

What we have here, understandably, is the Government's desire to take the one legislative opportunity that they have in this parliamentary Session—and, being realistic, that they are likely to have for two or three years—to create the powers to deal with whatever comes out of the Radcliffe review of the existing levy boards. None of us knows what those conclusions will be. In the agricultural industry, there are a multitude of different views about the value of the British Potato Council, the Home-Grown Cereals Authority, the Horticultural Development Council, the Meat and Livestock Commission and the Milk Development Council. Given the MDC's report last September into supermarket margins, I suspect that some organisations would be quite happy to see the back of it. It was quite a major report to which—without wishing to digress—the Government perhaps have not made as strong a response as I would wish.

Those bodies exist. If people go out, as I do, and discuss the matter with farmers and farmers' organisations, they will realise that there are a multitude of views. We do not yet know what conclusions will come out of the inquiry. It may be proposed that some of the bodies remain in their current state, some may be merged and some may be abolished. There are many permutations. We do know that there will be a report. As an aside, I hope that that report to the Government will be published as a precursor to what follows. That is not the same as the Government's publishing their own proposals that they will make as a result of the report—the proposals to which the hon. Gentleman referred.

Clearly, there is the potential for a significant impact on the agricultural industry for the next—dare I say it, in light of the earlier discussion—20 years or perhaps more. I do not think that there is anybody who does not appreciate that, given the changes that farming faces—the advent of the single-farm payment, stewardship schemes and so on—farming itself must change. Through some form of statutory levy, these bodies are engaged in promoting their particular sectors of the industry, helping to market their products and improving standards. In principle, everybody understands those objectives. Farmers need to grasp that more clearly than perhaps many have in the past and they need to understand that, if they are to compete in a more globalised agricultural economy, the role of such bodies is important.

Whether the bodies should remain as statutory bodies or become voluntary, and whether they should remain levy-funded or should be funded by   subscription are issues that will be part of the current review. As I have said, I know that there are many different views. It would be helpful if the Government gave us an update on their plans in relation to the principle of dealing with these bodies and if they addressed how they see the sequence of events unfolding. I will not trespass on your indulgence by talking about my amendments, which I will deal with later, Mr. Forth, but it would be useful if the Government were to lay out how they see things happening, when they expect the report to arrive, when they expect to produce their proposals, and how long they expect to spend consulting the industry and everybody involved in the food sector.

There is also the vexed question of devolution. Some of the bodies have a cross-border role or there is an element of devolution within them. The Meat and Livestock Commission is an example of a body in which is an element of devolution. It would be useful if the Minister could explain how that devolved aspect relates to the inquiry and whether the agreement of the Welsh Assembly or, I think in one case, the Scottish Parliament would be necessary to any change, and how that will work. These bodies are constantly evolving. They need certainty. I hope, therefore, that the review will not take too long because people on these bodies—the chief executive of one of them is a constituent of mine—are anxious to move on and to know where the organisation is going. While there is uncertainty, those organisations cannot do that. As the hon. Member for Sherwood has rightly said, this would be a useful opportunity for the Minister to explain the Government's thinking on the powers that they are seeking to take in the chapter.