Food Sector (Hansard, 20 July 1998)

§ Mr. Ron Davies

The markets for general agricultural products are competitive, and will become increasingly so. Wales needs premium products, which can command premium prices. We need much greater food processing in Wales, to add value to Wales's primary agricultural products. We need products with a strong brand image, and we must exploit as many niche markets as possible.

I have announced action today to develop industry-led action plans, setting clear priorities for the action that must be taken in the lamb and beef, dairy and organic sectors in the first instance.

As part of this, I am very concerned that work on promoting Welsh food, and work in supporting economic development in the food sector in Wales should go hand in hand. This is critical if there is to be coherent effective support for action by the industry. I have therefore decided to give the WDA a clear responsibility for supporting the development of the food industry in Wales.

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The WDA will work in close partnership with the Welsh Office Agriculture Department in facilitating the formulation of the industry-led action plans and it will lead in co-ordinating action in support of those plans. This new responsibility for the WDA will be a key part of the role that the new, all-Wales Agency will plan in promoting development in rural Wales. In giving the WDA this remit, I am endorsing the recommendations that the Welsh Affairs Committee, amongst others, have made to this effect.

In support of this, the Board of Welsh Food Promotions has agreed that work should transfer to the WDA at the start of October this year. WFP staff will be offered employment with the WDA, and the Company will subsequently be wound up. Our aim in this way is to sustain and build on WFP's achievements. I would like to pay particular thanks to Alun Evans, the Chairman of WFP, and his Board, for steering the Company through a difficult period.