HC Deb 02 November 1965 vol 718 cc143-4W
Mr. George Craddock

asked the Minister of Agriculture, Fisheries and Food whether he has completed his review of the meat research levy scheme; and if he will make a statement.

Mr. Peart

The Meat Industry (Scientific Research Levy) Order, 1963 imposed on the industry a levy designed to meet approximately half the capital and current expenses of the Meat Research Institute set up by the Agricultural Research Council. Collection of the levy was linked to the arrangements for making weekly guarantee payments under the Fatstock Guarantee Scheme in such a way that producers and buyers of certified fatstock each contributed one-half of the industry's total contribution.

This method of collecting the levy worked very well for so long as it remained possible to determine in advance whether guarantee payments would fall to be made in any week and, if not, to suspend collection of the buyers' share of the levy. The changes which were made in the Fatstock Guarantee Scheme at the time of the 1964 Annual Review had a number of advantages but included abandonment of the system of provisional announcements of the probable level of guarantee payment in each week; this in turn rendered the meat research levy arrangements unworkable in those weeks when in fact no guarantee payments were made. My right hon. Friend the Secretary of State for Scotland and I took the view that it was nevertheless right to see in the present fatstock year if the system could be made to work but it has become clear that a radical change is required.

My right hon. Friend and I have therefore concluded that the Meat Industry (Scientific Research Levy) Order should be revoked and that provision should be included in the legislation, now being prepared, providing for the setting-up of a Meat and Livestock Commission for the imposition of a similar levy. The main difficulty caused by the present method of collecting the levy has been that buyers of fatstock have had collected from them a sum of money which it has not been possible to recover by way of guarantee payments and which has not, therefore, been paid to the Agricultural Research Council. My right hon. Friend the Chancellor of the Exchequer has agreed, as part of a final settlement with the interests concerned, to make a like sum available to the Council.