Levy bodies should be retained, but important changes are needed, an independent review has concluded.
The review of the levy groups, including the British Potato Council and Horticultural Development Council, by Rosemary Radcliffe, assessed the need for such groups, as well as each organisations’ structure, role, funding and functions.
The report concluded that while much good work is being done to support the sectors, it is not always effective as it could be.
It said that the levy boards are generally small when compared to the industries they represent. “Their contribution is most effective when focused on activities that play to their strengths as independent, non-commercial but industry-focused bodies, and/or when they work in partnership,” the report said.
Radcliffe said the raising and spending of levy money needed to be more in “ownership” of the industries themselves, with greater transparency and more effective reporting to levy payers on what is being done with the money.
Her report said increased efficiency and lower costs could be achieved by making some changes to arrangements with regard to the levy and by moving to shared service arrangements in a number of areas.
While Radcliffe said her review rejects the merger of the existing bodies, she proposes creating a new model which would effectively group the boards under one over-arching organisation, which would collect and distribute the levy funds for all, effectively acting as a holding company.
The boards would be re-structured to work under this new company, with each organisation addressing its individual sector. A further organisation would also be created to deal with shared services common to each board.
Radcliffe said: “We need to ensure that levy payers, the people who at the end of the day are paying the bill, get maximum value for money from the statutory levy. I believe my recommendations will help that.”
Defra is keen to assess industry reaction before making any decisions and has launched a 12 week consultation on the report.
Lord Bach, food and farming minister, said: “[The] report sets out a comprehensive and thought-provoking case for a new structure for the future. There is much for all of us to consider.”