§ Mr. HargreavesTo ask the Minister of Agriculture, Fisheries and Food what cost recovery target she has set for ADAS in 1994–95; and if she will make a statement.
495W
§ Mrs. Gillian ShephardMy right hon. Friend the Secretary of State for Wales and I have decided that for 1994–95, ADAS will be asked to recover 63 per cent. of its costs for advisory services charged to the commercial customer from the ultimate beneficiary of those services. The remaining costs will be met by my Department.
In order to achieve these new targets, and reduce its cost base to make it competitive in all its markets, ADAS is today announcing plans for restructuring its operations. The principal changes are the consolidation of the 15 consultancy centres into seven larger units, and the 11 research locations will be managed through five of those locations. These changes will give improved efficiency and save management and local administration costs.
With the aim of providing a cost-effective service to smaller farms, ADAS has also introduced an information service called FarmLine on a pilot basis this week which will make full use of modern technology. Although there is expected to be a reduction in the total number of consultants, all farming sectors and geographical areas will continue to have access to ADAS consultancy service.
The combined effect of these changes will ensure ADAS can provide better value for its customers, helping them to respond more profitably to the changing demands of the industry. They will also enable the agency to continue its successful track record of meeting or exceeding all its annual targets since charging was introduced for its services in 1987.