Horticulture Research International (Hansard, 15 July 2003)

§ Lord Whitty

Further to my Answer of 20 January 2003, I wish to report further developments in respect of the restructuring of Horticulture Research International (HRI).

I am pleased to report that Defra has reached agreement with the University of Warwick about the future of HRI Wellesbourne and Kirton. We believe that the agreement will provide a stable and sustainable future for HRI and meet the core recommendations of the independent quinquennial review team.

Subject to finalising the details of the agreement and confirmation of the conclusion of a Defra business case that it represents best value, we expect the settlement with the university to contain the following key elements: 116WA

(a) HRI will continue to serve the horticulture industry as part of the university.
(b) Defra will grant the university a guaranteed research contract for an agreed programme of work. The contract will be for eight years at a total annual value of £5 millon in years 1 to 6, £3.5 million in year 7 and £2 million in year 8;
(c) Defra will transfer HRI's sites at Wellesbourne, Warwickshire and Kirton, Lincolnshire to the university with effect from 1 April 2004, subject to "clawback" arrangements to protect the public purse;
(d) The university will make a financial contribution equivalent to the value of the dwellings and agricultural land at Wellesbourne as assessed by the Valuation Office Agency;
(e) Following a programme of redundancies, the remaining HRI staff at Wellesbourne and Kirton will transfer to the employment of the university on TU PE terms with effect from 1 April 2004;
(f) The university will inherit ongoing redundancy and pension liabilities of transferring staff; and
(g) Defra will make a financial contribution to outstanding works required in respect of the Wellesbourne and Kirton estates.

We plan to exchange letters of intent with the university as soon as practicable followed by a business transfer agreement in the autumn, subject to negotiations and the Defra business case.

The independent quinquennial review team recommended that HRI Efford should close. The University of Warwick has indicated that it does not wish to acquire the site. Defra and HRI have carefully considered the review team's recommendation alongside other options and, regrettably, concluded that Efford should close in October. Staff at Efford will have access to the same support services as those similarly affected at other HRI sites and will receive redundancy compensation in line with agreed terms and procedures. The land and buildings at Efford are a valuable public asset which will be sold on the open market and the receipts invested in the wider restructuring of HRI. HRI will ensure that existing contracts at Efford are honoured. Defra will facilitate discussions with the horticulture industry and the research community about the need, if any, to make specific alternative provision for the research capability presently offered by Efford.

Negotiations are continuing between Defra and the East Mailing Trust for Horticultural Research about the establishment of East Mailing and Wye as an independent research station. The East Mailing Trust has made proposals which we plan to discus with it later in July. It is in everyone's interests to ensure that the new research station would be financially viable on the basis of a mixed portfolio of funding as recommended by the quinquennial review team. We aim to decide the future of East Mailing and Wye by the end of September at the latest.