§ 9. Mr. Huw Edwards (Monmouth)If he will make a statement about Government support for fanners co-operatives. [131271]
§ The Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food (Mr. Elliot Morley)Co-operatives and other forms of collaborative activity can provide a significant boost to the competitiveness of our farmers and growers. Government and industry are working together in a number of ways to facilitate and promote such working together.
§ Mr. EdwardsDoes my hon. Friend agree that the Farmers First co-operative has done a great deal to help the industry, especially with the opening of a new abattoir in Kenilworth, which is used by many of the farmers in my constituency? Does he agree that the objective 1 funding that the Government have secured for Wales provides great opportunities for further co-operative work in investing in abattoirs and other new infrastructure that is needed to support the industry?
§ Mr. MorleyI strongly support my hon. Friend. The Government have been supporting the development of collaborative marketing and co-ops through the agricultural development scheme, and further funds will be available through the rural development programme. Match funding has been provided for objective 1 programmes. The nature of the programmes is a matter for local people to determine, but there is no doubt whatever that there are great advantages for farmers and 1232 growers in coming together to try to add value and market their produce so as to get a greater share of the market. Objective 1 funds are certainly one way of helping them to do that.
§ Mr. Owen Paterson (North Shropshire)The great dairy processors of the world, such as Parmalat, Danone and, recently, MD and Aria in Scandinavia, all began as farmers' co-operatives. What is the Ministry's view of co-operatives and farmers' groups attempting to buy Unigate?
§ Mr. MorleyOne of our views is that the previous Government should have thought a little more carefully about the effect on the dairy sector before they destroyed the Milk Marketing Board. There are, however, issues to be considered here. The hon. Gentleman will know that the Competition Commission conducted an investigation that was responded to by allowing the development of three co-ops with the freedom to invest downstream in processing. There is no doubt that that brings advantages for dairy producers.