HC Deb 25 February 1964 vol 690 cc303-5

Amendment made: In page 6, line 10, at beginning insert: Subject to section (Supply of produce to co-operative marketing businesses) of this Act".—[Mr. Scott-Hopkins.]

Mr. Scott-Hopkins

I beg to move, in page 6, line 24, to leave out from "period" to "as" in line 25 and to insert: ending not later than two years after the establishment of the business".

Mr. Speaker

I think that it would be convenient to discuss with this the next Amendment, which is not selected, in line 24, after "with", insert: the submission to the Minister of a programme within a reasonable time following".

Mr. Scott-Hopkins

In Standing Committee, when an Amendment was put down by the hon. Member for Sheffield, Hillsborough (Mr. Darling)—I notice that he and his hon. Friends have tabled the same Amendment again, although it has not been selected—he and his hon. Friends made the point that the Clause imposed upon newly formed co-operatives which wanted to submit a progamme for the initial operation of their business an obligation to submit the programme immediately the co-operative was formed.

Obviously, this could give rise to difficulties in some cases. A new co-operative might need a breathing space to sort out its ideas and to work out the cost of putting them into operation. That is why I gave an assurance that we would consider how subsection (2) could be amended to meet the point raised by the hon. Member for Hillsborough.

The purpose of my Amendment is to fulfil that undertaking and to relieve a newly formed co-operative which wants to have a grant-aided programme of initial operation from the need to submit a programme for grant immediately it has been established.

Since the point is so clearly linked with another proposal made in Standing Committee by the hon. Member for Hillsborough to alter the terminal date of period of initial operation to which the programme may apply, perhaps I may explain why we left the period at two years from the date of establishment of the co-operative. To go beyond this period and to have a terminal date which varied according to when the co-operative happened to submit its programme would depart from the basic principle underlying the Clause of helping a new co-operative to become established.

I think that two years from the date of establishment is a very reasonable maximum period to allow for programmes to be drawn up for the starting of a new business, but let me add that there will, of course, be nothing to prevent a co-operative, after it has established itself and got under way with the help of the initial grant we are talking about under this Amendment, from submitting a further programme for expansion whilst its initial one is being completed. The difficulties the hon. Gentleman refered to are part of the initial operation. The two-year period will not deprive a co-operative of further aid if it wishes to expand.

I therefore commend the Amendment to the House because I think that it meets the point which the hon. Gentleman raised in Committee and does fulfil the assurance which I gave.

Mr. Darling

I should like to thank the Parliamentary Secretary for dealing with this not very difficult matter in this way. As he will appreciate, we had some slight difficulty in trying to find a form of words to cover the point we had in mind. Quite obviously, as the Clause stood, a new business could be handicapped by the time factor in starting off and developing. When I first saw the Amendment I thought that it would also be a bit too limiting, but when the hon. Gentleman says that after a business has been established a programme of expansion and development can be submitted by a newly established co-operative and provided that is made absolutely clear, I think our point is fully covered.

Amendment agreed to.