§ Mr. McMasterTo ask the Secretary of State for Scotland what measures he intends to put in place to encourage the development of co-operatives in the manufacturing, distribution, wholesale, retail, marketing, finance and housing sectors; and if he will make a statement.
§ Mr. StewartI refer the hon. Member to my answer of 10 February 1994 and to that of my hon. Friend the Minister responsible for education and housing in Scotland dated 17 February 1994.
In order to encourage the development of marketing co-operatives the Government will introduce, later this year, the marketing development scheme, which is intended to help producers and processors improve their marketing and commercial expertise. In addition the Scottish Agricultural Society receives Government funding to carry out on behalf of the Scottish Office co-operative development work among farmers.
The Government's Deregulation and Contracting Out Bill provides a general deregulatory power which will enable burden on business to be removed by secondary legislation. The illustrative list of uses for this general power, published alongside the Bill, includes proposals for credit unions and industrial and provident societies. These measures, when implemented, will remove restrictions on co-operatives and enable them to streamline their procedures. That, in turn, should encourage the continued growth of the sector.