Levy bodies to consolidate

Levy bodies to consolidate

The Horticultural Development Council has criticised plans for its restructure, as part of a move by Defra to consolidate five UK levy bodies into a single body by April 2008.

The restructure, which also involves the British Potato Council, aims to provide better value and accountability for growers and farmers.

But the HDC council believes the views of the majority of horticulture levy payers have been ignored. “There still has been no business case produced to show any financial benefits for horticulture and we fundamentally believe that the over-arching levy board will increase costs and reduce focus,” a statement said.

“We also consider this announcement reduces accountability to growers, rather than increasing it.”

Minister for sustainable farming & food, with responsibility for horticulture, Jeff Rooker, said: “We have retained the levy because there was overwhelming support (92 per cent) for this from farmers and growers during the public consultation. But changes are still needed to the structures to help the industry meet future business challenges.”

“We will appoint a new chair and board to lead the process of reform, including a review of the needs of industry and the rates of levy. ”

The announcement follows a 12-week consultation on the recommendations of the independent Radcliffe Review that recommended the retention of a statutory levy.

The single body will consist of six sector companies: horticulture; cereals & oilseeds; potatoes; milk; beef & lamb; and pigs. The new levy board will have the chairs of the six sector companies on its board of directors, plus four independents. Levy payers will be in the majority on the boards of the subsidiary companies.

BPC chairman David Walker welcomed the retention of a sector-specific focus for potatoes but warned unnecessary duplication must be eradicated and extra bureaucracy avoided.

He also expressed concern in regard to redundancies. “Inevitably achieving savings through integration will mean job losses, which must be handled with sensitivity as some staff have given many years’ service,” said Walker.