Central Marketing Organisation (Hansard, 8 June 1982)

§ Mr. Peter Walker

In the light of consultations with the leaders of the food and agriculture industries, I have decided to set up a central marketing organisation to help stimulate an improved marketing performance in those industries. The new organisation will be known as "Food from Britain". Its main tasks will be to co-ordinate existing marketing efforts and promotional work; encourage joint initiatives on the part of existing bodies; and initiate new ventures on both the domestic and export markets.

My intention is that the new organisation will take over from the present Central Council for Agricultural and Horticultural Co-operation which, within the limit of its present powers, has helped promote a number of highly successful marketing campaigns in the co-operative sector. Food from Britain will however require wider powers than those of the present Central Council so that its activities are not, as now, confined to co-operative development alone. I shall therefore seek to introduce the necessary legislation setting up the new marketing organisation as soon as possible. I have invited Nicholas Saphir, the chairman of the present central council since 1980, to become chairman of Food from Britain.

It is the intention of the Government to see that Food from Britain is properly financed from the outset on a scale sufficient to see that the new organisation is effectively launched. The Government's role will be to provide pump-priming funds for the first five years of the organisation's activities. In addition to existing Government support to the present Central Council of some £1½ million per year—excluding grants—for co-operative activities, which there are no plans to change, the Government will provide up to £14 million over the five year period 1983–84 to 1987–88 to help launch the marketing activities of Food from Britain.

The success of the new organisation will depend crucially upon the degree of support it commands from the food and agriculture industries. At the start of the five year pump-priming period. I envisage that the Government will be financing the greater part of the organisation's budget, but that Government's contribution will reduce as the food and agriculture industries contribute on an increasing scale to the financing of Food from Britain. Contributions from industry will be made on a voluntary basis by means of 22W subscriptions, contributions and payments for services. By the end of the five year pump-priming period, the full operational budget of the organisation will be provided by the industries concerned. The success of Food from Britain will thus rightly depend on its ability to convince the agriculture and food industries that the services it provides are worthwhile. Accordingly, within the financial arrangements described above, the Government will seek to determine the year to year contributions to the organisation in a way which gives it an incentive to secure the firm financial support of the industries it serves.

I regard the setting up of Food from Britain as a major step to help the food and agriculture industries improve their competitive performance. A great deal has been achieved in the last three years to ensure that British food and agricultural produce obtains a greater share of both home and export markets. I am convinced that Food from Britain will help improve that performance still further, and that the industry will respond by giving the organisation wholehearted and continuing support.