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Report slams farmer-funded generic advertising
The
statutory levy should be retained for the time being in each of the product
areas to
which
it currently applies but some important changes are needed, according to
Rosemary Radcliffe, who was asked by Ministers earlier in the year to
conduct an
independent
review of the five agricultural and horticultural levy bodies.
Speaking on Radio 4’s Farming Today Programme prior to the release
of the report, Radcliffe described generic advertising campaigns, such
as the MLC’s recent ‘Beefy
and Lamby’ ads, as “not really very successful…very unlikely to
deliver value for money…and an inappropriate means of advertising”.
The
Review report (click here to download a
copy), which is published today, examines the rationale for, and role,
organisation, funding and functions of the five bodies and makes
recommendations for the future.
A fundamental question examined in the report is whether there is still a
case for having statutory levies at all. The Review says there is, for now,
but the case is
stronger
in some product areas than in others and is likely to weaken over the next
few
years in some areas. So there is a need to keep matters under consideration
and be
prepared
to wind up arrangements that outlive their usefulness, but in any case it is
necessary
to ensure that the levy delivers what the industries need in the most
effective
way, which means making some important changes.
On what is needed, the key conclusions were:
-
The levy bodies are relatively small when seen in the
wider context of the
needs
of the industries and their contribution is most effective when focused
on
activities that play to their strengths as independent, non-commercial
but
industry-focused
bodies, and/or where they work in partnership with others.
-
Arrangements for raising and spending levy money need
to be, and to be seen
to
be, much more in the ‘ownership’ of the industries themselves, with
greater
transparency
and more effective reporting to levy payers on what is being
done
with their money.
-
Detailed planning and delivery of services needs to be
close to the individual
groups
of levy payers, but within a framework that encourages common
working,
where appropriate, to avoid duplication, and delivers improved
performance
monitoring.
-
Improved efficiency and lower costs can be achieved by
making some changes
to
arrangements with regard to the levy and by moving to shared service
arrangements
in a number of areas.
-
On structural options, the Review rejects mergers
between existing bodies but
proposes
instead a New Model that recognises the importance of all the key
business
drivers. The New Model retains a number of sector-specific bodies or ‘SectorCos’,
that would be responsible for the efficient and effective delivery of
services to the individual groups of levy payers. A new body,
‘NewCo’ would
act as holding company for the SectorCos and be the ‘guardian’ of
the common
framework of activities and of performance monitoring. And another new
body, ‘ServiceCo’ would be the shared service provider delivering enhanced
efficiency and reduced costs. This New Model would result in significant
on-going net savings for levy payers in return for a modest investment
in the costs of change.
Radcliffe concluded “The health of the industry sectors covered by the
levy bodies is of great importance to us all, not just in terms of their
economic contribution but also in terms of their contribution to the wider
sustainability agenda. I have been spending a lot of time listening to levy
payers and others about the needs of these industries and I have been
impressed by much of the work that is going on to support them in responding
to the challenges they face. I believe the levy bodies have, potentially, an
important role to play in this regard in the future. But I consider some
important changes now need to be made, changes that are documented in detail
in my report.”
“These industries have been very hard-pressed and things are not
getting any easier
for
them. We need to ensure that levy payers, the people who at the end of the
day are
paying
the bill, get maximum value for money from the statutory levy. I believe my
recommendations will help to achieve that.”
Sustainable Farming and Food Minister, Lord Bach,
announced a full consultation on the report.
Lord Bach said: "I am conscious that Rosemary points
to the need to improve accountability to levy payers in any new
arrangements, and it must be right that they and other stakeholders are
given the earliest opportunity to comment on the detailed programme of
change that she recommends. My
fellow Ministers and I are therefore moving without delay to a full, formal
consultation of stakeholder interests over the next 12 weeks. Subject to the
views received, we will make further announcements on the way forward in the
Spring."
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