Co-operatives (Hansard, 14 November 1974)

§ Mr. Peart

The Agricultural and Forestry Associations Order 1974, made by my right hon. Friends the Secretaries of State for Scotland and Northern Ireland and myself, has been laid before the House today.

The most important change which this order will make is to extend protection under restrictive trade practices legislation to agreements which give effect to commitments by first-tier associations to market their members' produce to, or through, the second tier associations—"federals" in the order—to which they belong. A federal which undertakes to market such produce will, without loss of protection, be able to agree with the constituents on minimum prices and other terms of sale and the quantities and qualities which it will accept for marketing. Similar provisions will apply on the requisites side. Protection will also be extended to exclusive dealing and sole agency agreements between two associations, two federals or one association and one federal. As under the present orders, the protection will be available only to associations and federals which do at least two-thirds of their business with their members.

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The order also brings up to date the provisions which company-type co-operatives must include in their memoranda or articles of association if their agreements are to be protected.

I am confident that the operation of these co-operative associations and federals will be significantly helped by the provisions in this order. The details have been worked out in consultation with the National Farmers' Unions, the Central Council for Agricultural and Horticultural Co-operation, and bodies representing co-operatives. Private traders concerned have also been consulted. A substantial measure of agreement has been reached. I should like to take this opportunity of thanking all those who have co-operated so helpfully in this complicated exercise.