§ 25. Mr. Hastingsasked the Minister of Agriculture, Fisheries and Food what steps he intends to take to encourage farmers, co-operatives and marketing organisations; and, in particular, whether he will review the size of the statutory shareholding.
§ Mr. BishopIt has been the policy of the Government for many years to encourage farmers' co-operatives and marketing organisations; the Central Council for Agricultural and Horticultural co-operation was set up by my right hon. Friend and his colleagues in 1967 specifically for this purpose. Its work in marketing is now being expanded following the decision early this year to increase its resources for this purpose by £250,000 a year. The Government are strongly in favour of raising, by legislation, the statutory limit on shareholdings in industrial and provident societies as soon as parliamentary time allows.
§ Mr. Peter Millsasked the Minister of Agriculture, Fisheries and Food, following the reference of the NFU Development Trust's offer for the ordinary capital of FMC to the Monopolies Commission, whether he will propose other ways in which British farmers can help themselves by organising their production and marketing and by developing their own integrated business with their own money.
§ Mr. BishopThe reference to which the hon. Member has drawn attention in no way represents any change in the Government's policy which is to encourage development towards more efficient production and marketing, including the development of agricultural co-operation.
§ Mr. Peter Millsasked the Minister of Agriculture, Fisheries and Food if he will make a satement on his policy on the principle of agricultural co-operation, in the light of the Government's reference of the NFU Development Trust's offer 548W for the ordinary capital of FMC to the Monopolies Commission.
§ Mr. BishopMy right hon. Friend the Secretary of State for Prices and Consumer Protection made the reference because the proposed acquisition raises issues of public interest which require detailed investigation. Neither the NFU Development Trust Ltd. nor FMC Ltd. is an agricultural co-operative. It remains the policy of this Government to encourage agricultural co-operation. The Central Council for Agricultural and Horticultural Co-operation administers a scheme of grants for co-operatives; other measures of encouragement include loan guarantees and special provision under restrictive trade practices legislation. The Agricultural and Forestry Associations Order 1974, laid before the House on 14th November, will exempt from registration under that legislation new classes of agreements entered into by first and second-tier co-operatives. I am confident that their operations will be significantly helped by it.