§ Mr. PaiceTo ask the Minister of Agriculture, Fisheries and Food what assessment he has made of the applicability of the EU fruit and vegetable regime to the UK horticulture industry; and what proposals he has to improve the UK take-up of assistance under the regime. [86107]
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§ Mr. RookerThe reformed EU fruit and vegetable regime offers enormous benefits for UK growers. The progressive reduction in aid for intervention, and diversion of funds to structured operational programmes, has already enabled those growers who trade through producer organisations (POs) to benefit. Payments to POs for constructive works over a period of years enables POs to improve production techniques, quality, preparation for market, marketing and promotional activity, in addition to encouraging the use of environmentally sound practices.
Seventy six operational programmes are currently running in the UK. Funding for work on UK programmes in 1997 totalled £5.7 million. Payment for work in 1998 is expected to be about £7 million with a potential payment of £12 million for 1999. This represents new funding for the UK horticulture industry.
There is no great tradition of grower co-operation in the UK and, although a total of 92 POs in the UK are recognised under the new regime, the percentage of the UK fruit and vegetable sector covered by recognised POs is only 35 per cent. My officials have contacted organisations which have not sought recognition and encouraged them to do so. Independent growers are also encouraged to join existing POs or to form new organisations and seek recognition, so that they can benefit from EU aid.