HL Deb 28 November 1991 vol 532 cc1484-5

8.40 p.m.

The Earl of Strathmore and Kinghorne rose to move that the draft order laid before the House on 14th October be approved [1st Report from the Joint Committee].

The noble Earl said: My Lords, this order amends the Scottish Seed Potato Development Council Order 1981 and is presented in accordance with the requirements of the Industrial Organisation and Development Act 1947. It increases from £15 per hectare to £25 per hectare of seed potatoes classified the maximum annual charge which may be levied on producers by the council in order to meet the expenses incurred in the exercise of its functions. The levy on producers in 1990 was £15 per hectare, discounted to £14 per hectare for early payment. The increase in the maximum levy is intended to take account of any increase in costs between now and 1995, when the continuation of the council and its operations will be statutorily reviewed.

Paragraph 6(1) of the Scottish Seed Potato Development Council Order 1981 authorises the council, subject to the approval of the Secretary of State, to impose an annual levy on every producer of classified seed potatoes at a rate not exceeding £15 per hectare. The council operated on a rate of £10 per hectare from its inception in 1982 until 1987, and only in 1990 was the statutory maximum of £15 per hectare levied, with a discount of £1 per hectare for early payment.

The area of seed potatoes classified in Scotland has gradually declined since 1982, when the classified area was 20,341 hectares, to 14,205 hectares in 1991, thus reducing the council's prospective income. This is the primary reason for the proposed increase in the maximum levy to? 25 per hectare. I am very happy to commend the draft order to the House.

Moved, That the draft order laid before the House on 14th October be approved [1st Report from the Joint Committee]. —[The Earl of Strathmore and Kinghorne.]

Lord Carter

My Lords, the House will be extremely grateful to the noble Earl for having explained the order so clearly. It must be something of a record for a farmer to agree with an increase in farming costs; but I have no comments to make beyond saying that we understand and approve the purpose of the order.

On Question, Motion agreed to.