National Seed Development Corporation and Plant Breeding Institute

HC Deb 24 July 1986 vol 102 cc324-5W

Sir Anthony Grant

asked the Secretary of State for Education and Science if he has reached a decision on the proposed transfer of the National Seed Development Corporation and Plant Breeding Institute to the private sector.

Mr. Kenneth Baker

My predecessor announced on 18 February that he and Agriculture Ministers had decided that a transfer of the National Seed Development Organisation and part of the Plant Breeding Institute to the private sector would be desirable provided it can be achieved on satisfactory terms. We have now received, and studied, a report by Lazard Brothers and Company Ltd. The Government are satisfied that transferring NSDO and the applied plant breeding departments at PBI to the private sector is the best way of ensuring that their experience and expertise is applied and developed to the fullest extent and to the maximum benefit of United Kingdom agriculture and the United Kingdom economy.

In consequence, the intention is to offer the NSDO and the PBI applied breeding departments, with certain scientific and support elements, for sale later this year. The strategic plant science departments at the PBI will remain in the public sector and become part of the Agricultural and Food Research Council's new Institute of Plant Science Research. This science will continue to underpin plant breeding in both the public and private sectors.

I recognise and commend the vital contribution of NSDO and PBI staff to present and past successes. I believe that all of the staff concerned will respond well to the new opportunities for continuing success to the benefit of the United Kingdom created by this sale and the parellel creation of the new institute.

Interested purchasers will be asked to give a full statement of their future intentions for the assets in relation to United Kingdom needs and capabilities for plant breeding and seed marketing, and to benefits to the United Kingdom economy. A decision to proceed with the sale will be subject to obtaining satisfactory terms, particularly with regard to the needs of United Kingdom agriculture and horticulture.

We will shortly be appointing financial advisers to assist with the proposed sale.