The UK fruit industry has attacked the government’s handling of the Horticulture Development Company (HDC) levy amid complaints of inequality and procrastination.
Since DEFRA announced its intention to radically change the scheme two years ago, the fruit industry has been involved in a wrangle to address some of the changes.
An independent report by Séan Rickard, a senior lecturer in business economics at Cranfield University, is expected to suggest significant changes to DEFRA’s current system.
Among DEFRA’s changes to the system two years ago was the decision to measure business’ levy on turnover, rather than acreage, with smaller businesses exempt from the charge.
Adrian Barlow, chief executive of English Apples and Pears, told delegates at the British Independent Fruit Growers Association's (BIFGA) annual general meeting that the chief concerns over the research levy lay in the accountancy charges; the abandonment of the acreage system; timescales for sending in returns and the exclusion of cider from growers’ returns.
Rickard was appointed to assess the levy in January and has produced a draft report, after industry consultation, for approval by the Horticultural Development Company (HDC) board and release later in the summer.
Andrew Tinsley, HDC technical manager, assured delegates that the report had “taken into account” their concerns and “does go a long way to giving growers what they want”.
It is thought the outcome of the report could have ramifications across the whole of horticulture as DEFRA scrutinises the financing of research in all sectors.
Clive Edmed, BIFGA vice-chairman, told freshinfo: “The current structure is not working; 50-60 per cent of growers are paying 10 per cent of the money. We are all for research and development, but it should be on a fair basis. The bigger growers may be paying a bit more but smaller growers are still reliant on the research into SOLAs and other findings. We had a decent solution with acreage now, growers like me who hand-pick berries making the same area as machine-picked product cost more using turnover.”
Barlow told freshinfo: “The amount of growers that turnover less than £60,000, which is the figure DEFRA deems as not cost effective enough to collect from, is around 50 per cent of UK growers.
“That means half of the industry is not paying the levy for its R&D but I wonder how much the administration costs to collect this money really amounts to.”
BIFGA members met at Pippins Farm in Pembury for their AGM and to celebrate 21 years of the association. It has engaged in a top-fruit planting project known as BIFGA 21 at two main Kent sites - Hadlow College and Brogdale Orchard - to celebrate the landmark.
The meeting saw members partake in a farm walk, renew its opposition to red tape in horticulture and reinforce its support for the proposed regulatory retail ombudsman.
No comments yet