Welcome for Levy Body Review
15/03/05

NFU Scotland has welcomed the announcement today by Ministers of an independent review of the levy bodies which promote food and farming. The review begins in April and is expected to last for six months.

There are five statutory bodies subject to the full remit of the review. These bodies operate on either on a GB or UK basis and are funded by over £50 million in compulsory levies from farmers. They are the Meat and Livestock Commission (MLC), the largest body receiving around £27 million in levy income, the Home-Grown Cereals Authority (HGCA) which receives £10 million annually, the British Potato Council (BPC) and Milk Development Council (MDC), both with a levy income of £6 million, and the Horticultural Development Council (HDC) which collects £4 million in levies each year.

In Scotland, red meat promotion is devolved from MLC to Quality Meat Scotland (QMS). As a result, QMS receives nearly £4 million a year in compulsory levies from Scottish farmers out of the total MLC levy income of £27 million. Given the recent establishment of the body following devolution (it took full control of Scottish levies in April 2003) the review will focus on its functions and structures, rather than the rationale for its existence.

Reacting to the announcement today, NFUS President John Kinnaird said:

“We welcome this review, which is an important step in ensuring the activity of UK levy bodies is relevant to the industry in the wake of CAP reform.

“The legislation establishing the five UK levy bodies is at least 35 years old, so the time is right for a review. The need for a specific Scottish meat promotional body was agreed post-devolution and confirmed in a recent review. It is therefore right for this review not to go over that same ground again for QMS and instead concentrate on what it does.

“Whilst each individual levy body is reviewed every five years, this review will take an overarching look at all five. Scottish farmers have, in general, been supportive of the levy bodies in the past, which have delivered benefits to the meat, potatoes, cereals, milk and horticultural sectors. However, producers will be keen to ensure the research, communication and promotional functions of UK levy bodies are as efficient as possible and the NFUS priority is to ensure our members have the opportunity to contribute fully to all aspects of the review.”