§ Mr. Nicholas Baker
To ask the Minister of Agriculture, Fisheries and Food what arrangements have been made for exempting certified cereal seed from the cereal co-responsibility levy.
§ Mr. MacGregor
Certified cereals seed is exempt from the cereals co-responsibility levy, but levy will be payable on a proportion of cereals delivered under a contract for seed certification to reflect the fact that not all the grain so delivered will ultimately be certified and sold as seed. For the 1988–89 cereals marketing year (1 July-30 June) this proportion will be 16 per cent. for all types of cereals.
A minimum level of certification will also be set. If the percentage of the total quantity of cereals delivered to a seed merchant under seeds contracts that is finally certified and sold as seed falls below this level, co-responsibility levy will be payable on all cereals for which the merchant is unable to provide proof of certification and sale on seed. For 1988–89 the minimum level of certification will be 75 per cent.
Regulations will shortly be laid before Parliament implementing these arrangements.