EGGS AUTHORITY LEVY SCHEME (APPROVAL) ORDER 1974 (Hansard, 28 March 1974)

§ LORD WELLS-PESTELL

My Lords, I beg to move that the Eggs Authority Levy Scheme (Approval) Order 1974, a copy of which was laid before the House on March 14, be approved. The purpose of this Order is to provide for the Eggs Authority to be financed in the future by means of a levy on chicks used for egg production. While this represents a change in the mechanisms by which the Authority is financed, I should emphasise that it does not represent any real change in principle. The money to be raised by the levy has up to now come from the industry but by means of a deduction from the egg deficiency payments which are to end on March 30.

The Eggs Authority was set up in March, 1971, with the demise of the British Egg Marketing Board and given the general duty of improving the marketing of eggs. Particular functions undertaken by the Authority include advertising, collection and provision of market intelligence and research and development. The Authority currently has 12 members, 3 of whom are independent, one being the Chairman, one the Deputy Chairman and one specially conversant with consumer interest. Five are appointed after consultation with producer interests, and 4 after consultation with trade interests. Perhaps I might say at this stage that the Eggs Authority has been welcomed by both the National Farmers' Union and by farming interests generally. The need for the Authority 741 was reviewed last summer and, after consultations with interested organisations, the then Government decided that the Authority should continue in being after March, 1974, provided suitable financial arrangements could be worked out.

As I have indicated, most of the Authority's finance has up to now come from a levy on producers which has taken the form of a deduction from the egg deficiency payments. In addition Ministers make, and will continue to make in the coming year, a 50 per cent. contribution towards certain of the Authority's expenses, particularly in relation to the Authority's market intelligence and research and development activities. However, because of the ending of egg deficiency payments on March 30, it has been necessary to devise a way of raising the levy other than by deduction from these payments. In January of this year the Authority submitted a scheme for raising the necessary finance by means of a levy on chicks intended for use in egg production. The interests primarily concerned have generally agreed that this Scheme provides the most convenient and equitable method of financing the Authority that is available, given the provisions of the 1970 Act. It requires hatchers and importers to pay a levy to the Authority on day-old chicks placed by them for egg laying. Hatchers and importers are in turn empowered to recover the levy from egg producers, to whom they sell the chicks.

Your Lordships will see that the Scheme applies to hatchers in Great Britain and Northern Ireland and to importers bringing chicks into Great Britain and Northern Ireland to be placed for egg laying. Hatchers and importers who during any period of 12 months do not place more than 300 chicks for egg laying purposes are, however, exempt from the Scheme. The Scheme also exempts from levy chicks provided as a tolerance or replacements to compensate for mortality. In addition, it allows hatchers and importers a reasonable period of time to pay the levy due to the Authority and, as well as empowering them to recover the levy from those to whom they sell chicks, provides that they should be reimbursed for costs incurred in the collection of the levy from producers.

742 The Scheme embodied in the Order laid before your Lordships also incorporates certain minor modifications made by Ministers to the Authority's Draft Scheme. The modifications which are specified in the Order seek to improve the clarity of some of the definitions in the Scheme. Also, they cover the possibility that this Order might not be approved in time before the commencement on March 31 of the Authority's 1974–75 accounting period. Thus the Scheme, as amended, exempts hatchers and importers from paying levy in retrospect on chicks placed before the necessary further Order specifying the rate of levy for 1974–75 comes into operation. However, I hope that your Lordships will to-day approve the Order before you. If you do, the further Order required to specify the rates of levy will be laid before Parliament as a matter of urgency, and if possible before the end of the week, to take effect from the beginning of the 1974–75 accounting period.

The rate of levy to be specified in this Order is expected to be £2.84 per 100 chicks. The Government believe that the Eggs Authority is performing a very worthwhile service to industry and should be enabled to continue its work. I therefore beg to move that your Lordships approve the Eggs Authority Levy Scheme (Approval) Order 1974 which is before the House.