Memorandum submitted by the Milk Development
Council (Appendix 21)
1. The Milk Development Council (MDC) wishes
to offer the following written evidence to the Environmental,
Food and Rural Affairs Committee for its discussions regarding
the draft Natural Environment and Rural Communities Bill.
THE REVIEW
OF LEVY
BODIES
2. The Milk Development Council (MDC) welcomes
the review of Agricultural and Horticultural Levy Boards recently
announced by DEFRA in response to the recommendations of the Haskins
Report. We believe that the review will ensure that the support
provided to industry sectors by levy bodies will match the on-going
and future requirements of those sectors. Such a review is entirely
appropriate during and following a period of intense change. We
believe also that the review should go some way to clarifying
DEFRA's role and functions as industry `sponsor' of the food producing
industries.
3. Because of the progress that the MDC
has made in recent years in delivering genuine benefits to dairy
farmers, we look forward to the opportunity to extend and share
our insights and the skills. For this reason the MDC is confident
as the outcome of its Quinquennial Review in 2003 showed that
dairy farmers and the wider industry sector value the work of
the Council and that this work will need to continue post the
review being carried out during 2005.
THE DRAFT
BILL
4. The Bill provides ministers with widespread
powers for the enactment of any changes recommended by the review
of levy bodies. While a designated body, listed under Schedule
5 of the Bill, may have accountability to ministers and to parliament,
in the case of levy bodies there is also accountability to its
levy payers and industry stakeholders who currently fund the activities
undertaken by these bodies. We would suggest that there needs
to be more clarity concerning the terms of any agreements between
ministers and designated bodies and how such agreements would
be reached including the level of consultation required with funders.
5. Where, as in the case of MDC, the sponsored
industry does not segregate activities according to the borders
between devolved administrations, we are concerned that there
remains flexibility within the drafting of the bill to reach a
practical approach for supplying the functions required across
borders which does not require duplication of effort by the commercial,
and other, organisations involved.
6. We believe that, in order to maintain
the confidence of stake holders the Bill should ensure transparency
between the sources of funding, both government and non government,
and the function being provided by bodies. In the case of industry
funding there should be clarity between source of funds and the
interests of primary producers and other sections of the supply
chain in application of those funds.
Milk Development Council
February 2005
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