Fears over the impact of the probable new Levy Board structure have been voiced by Alastair Findlay, chairman of the British Onion Producers' Association's R&D committee.
BOPA represents the bulk of a major industry which is valued at around £50 million at farm gate, and is the major source of year round supply based on modern storage technology.
While Findlay will also be submitting his thoughts and requesting further information from Defra before the consultation period ends on June 6, his initial concern stems from the Radcliffe review undertaken in 2006 when Horticulture drew 123 submissions, 94% supporting the continuation of the current structure and stressing there should be no changes made.
Despite this almost unanimous verdict the Radcliff Review ruled against an independent HDC.
"The consensus was that our industry was quite different from agriculture by its close linkage to its markets, its diversity and need for efficient research," he said.
“Amalgamation with the agricultural levy boards could threaten the excellent level of co-operation of growers with the HDC which was serving us efficiently and economically.”
He also wants assurance from Defra that the horticultural levy will not be used to offset any inefficiencies in other agricultural sectors, although this has been categorically denied by new HDC chairman John Hall, writing in HDC News in April.
Alastair Findlay was struck by the lack of financial openness in the Consultation Report and Impact Assessment for the Levy Board Order. Were Horticulturists' being made jointly liable for funding any possible liabilities of the other Boards when a potential plus 50 percent levy hike and a five year Nil-get-out moratorium was being proposed?
"I may be accused of being cynical but are there any financial black holes in any of the agricultural levy boards?" he asks. "For example, do they operate final pension salary schemes, and if so what is the financial exposure?"
"And while the message from government is that this will lead to greater efficiency where are the savings to be found," he wondered. "After all, HDC's current overheads are a quarter of the average of the other levy boards.
"How are the eventual overheads and running costs of the new body and subsidiary companies going to be apportioned?
"With the proposed provision for a 50 percent rise in levies being written into the legislation, can we be assured that each sector can individually determine any increases by a subscribers' vote, and will any funds raised be ring fenced?"
"The other aspect is whether our customers are prepared to fund these proposed increases."
Findlay added that he did not believe the sector could look for much support from the National Farmers' Union, ‘who undoubtedly will have a vested interest in ‘sorting out’ and maintaining the Agricultural levy boards’.
"The proposals as they stand will damage horticultural research funding and cost growers dearly in the years to come, as horticulture is forced to shoulder liabilities which properly belong elsewhere, " he believes.
"We are in a damage limitation battle to ensure HDC can continue to service our industry in a viable and cost effective form,” he said bluntly.
He even went as far as to questioning whether the industry should now be asking whether Defra has a prior agenda that inconvenient and contrary opinion should not interfere with their chosen objective.
"I would urge all growers to make time to carefully read the documents on www.defra.gov.uk/corporate/consult/levy-boards/index.htm and draw their own conclusions," Findlay said.
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