HL Deb 03 May 1988 vol 496 cc448-50

7.52 p.m.

The Parliamentary Under-Secretary of State, Ministry of Agriculture, Fisheries and Food (Baroness Trumpington) rose to move. That the draft order laid before the House on 30th March be approved [22nd Report from the Joint Committee].

The noble Baroness said: My Lords, this scheme is presented in accordance with the requirements of Section 13 of the Agriculture Act 1967, as amended by the Agriculture Acts of 1970 and 1986. The order replaces the maximum charges set out in the schedule to the Meat and Livestock Commission Levy Scheme (Confirmation) Order 1987. In doing this, the order increases the maximum charges payable for cattle and sheep in respect of general expenses. This is the first increase in these maximum rates since 1981. The maximum charges for calves and pigs in respect of general expenses remain unchanged. Similarly, the maximum charges in respect of species promotion expenses—that is the "bolt-on" levy introduced last year—remain unchanged.

Thus, overall, the order would enable the MLC to increase its income to meet its general expenses by increasing the scope for the levy charge on cattle and sheep within new maxima. The levy is shared equally between producers and slaughterers. I should stress that the actual amounts within these maxima will continue to be determined in the normal way by the MLC in consultation with the appropriate representatives of the industry.

Before submitting its scheme to Agriculture Ministers, the commission consulted widely within the meat and livestock industry on its proposals for new levy maxima. The proposals have been broadly accepted. Agriculture Ministers too have consulted the industry separately.

Your Lordships may find it useful if I recall briefly the background to this order, say why the increases are being limited to cattle and sheep alone and tell you why these provisions were not included in last year's order. I shall also mention the MLC's new corporate plan, which is centrally linked to the changes now proposed in the draft order.

Last year's order introduced a completely new levy—the so-called bolt-on levy for species promotion. This was payable by producers alone. It was right that this be examined as a separate issue at that time. The bolt-on levy is now raising substantial sums to help the work of the promotion councils of the MLC for each of the three main species: lamb, beef and pork.

I should like now to tell your Lordships about the MLC's corporate plan. The MLC entered into discussion with the industry over the adoption of a corporate plan covering the three year period 1988–91. The draft plan was well received by the meat and livestock industry. It has now been finalised. It is in our view an important document and its main thrust is to ensure that the MLC is doing all it can on behalf of the industry to respond to consumer demand in meat quality and consistency through better gearing of production to that demand, and by better marketing and merchandising. Further, the plan envisages increased spending on export market development. As your Lordships will no doubt be aware, exports are terribly important for our industry. For example, one in five of our lambs go for export. The figure is one in six for beef.

The MLC's corporate plan sets out details of the implications for income and expenditure. In drawing up the plan, the MLC took account of the degree to which its income for general expenses was being met by each of the species. It was felt by the commission that the pigs sector was contributing a somewhat more than proportionate amount to the levy income and that the relativities of the charge on each of the species ought to be examined and rebalanced to reflect the current species share of the MLC's work. Thus, the plan envisages increasing the levy rates on cattle and sheep above the current maximum rates to meet the MLC's general expenses, but no increase in the maximum amount chargeable on pigs is proposed. I am sure that this will be welcome news for pig producers. It is the requirement to increase the rates for cattle and sheep above the current maxima that prompts the need for the current order. The new maxima in the order are not expected to require revision before 1991 at the earliest.

As I have said, the MLC has worked within the current maximum levy rates for general expenses since 1981. In fact, the MLC has not raised the actual levy rates applying to meet general expenses since 1983–84, despite inflation. And they continue to look for yet further improvements in efficiency, effectiveness and economy in the crucial work they are carrying out on the industry's behalf. This order—linked to the corporate plan—represents an important and central measure in setting the basis for future income and expenditure plans to 1991 on all MLC activities for the British meat and livestock industry. It has the support of Ministers and of that industry. I ask your Lordships to support the Motion. I beg to move.

Moved, That the draft order laid before the House on 30th March be approved [22nd Report from the Joint Committee].—(Baroness Trumpington.)

Lord Carter

My Lords, I begin by saying how nice it is to see the noble Baroness in her place again. I should like to thank her for her explanation. However, I have to declare an interest—I do so every time there is an agricultural levy—as a substantial payer of these levies.

As the noble Baroness said, the MLC has produced the new corporate plan which I have studied. The organisation has a considerable role in the future development and promotion of the meat industry. We all recognise that. The noble Baroness will be aware that farmers are not all that happy at having to pay more for anything at any time, but particularly at the present time. However we all recognise the need for increased funds for the MLC.

As the noble Baroness said, there is an extremely important role in the use of the bolt-on levy for promoting the consumption of British meat both here and abroad. I am particularly pleased that in the pig sector the decision has been taken not to increase the amount levied because, as the Minister knows, this sector is extremely hard pressed. From these Benches we support the Motion. It will play an important role in the future organisation.

Baroness Trumpington

My Lords, I thank the noble Lord, Lord Carter, for his very kind personal words and for the warm welcome he has given to the order. I commend the order to the House.

On Question, Motion agreed to.

Lord Hesketh

My Lords, I beg to move that the House do now adjourn during pleasure until 8.45 p.m.

Moved accordingly, and on Question, Motion agreed to.

[The sitting was suspended from 8 to 8.45 p.m.]