A landmark case in which Speciality Produce Ltd (SPL) has regained its status as a producer group has been thrashed out after the High Court quashed two recent government decisions and ruled in favour of its application for recognition as a producer group.
The group, which grows salad leaf, spring onions and soft fruit, has been “frozen” for two and a half years after Lord Rooker and more recently, then minister for food Jane Kennedy refused in March to accept the unanimous recommendation of the Rural Payment Agency's (RPA) Appeal Panel that SPL succeed in its application for recognition.
The European Court of Auditors is thought to have initiated concerns over whether producer groups should be recognised and available for grants to help them compete in a highly competitive market.
SPL believes the RPA was “under considerable pressure” from the European Court, but said it is “highly regrettable” that its members - all working farmers - have had to pursue this application for recognition for almost three years.
During the process, members have faced lengthy delays and conducted a three-stage appeal process before finally getting last week’s decision from the court.
Edward Perrott, head of commercial disputes at solicitors Taylor Vinters, told freshinfo: “SPL has been very brave to take the government to court and it is enormous to have won and may be a landmark case. For an independent to risk taking them to court shows great character.
“There were various reason to fight the decision. Under the common market, they are eligible for a grant to receive up to four per cent of their spending back in the form of grants, but they have to spend eight per cent to get this back. They were disadvantaged in the marketplace and it is only because of their show of persistence and courage that they have now obtained what they hope will be a full recognition of their rights under this European scheme.”
SPL had, on the RPA’s recommendation, aligned itself to a central marketing system to combat being outlawed but were still not recognised for reasons relating to marketing, packhouses and machinery among others.
David Piccaver, chairman of SPL, told freshinfo: “We are very pleased to get such a strong, clear judgement. We feel very strongly about European legislation around producer organisations and the current scheme of administration. I feel for the RPA; they have been moved premises twice under the current government.
“We have had a frozen organisation for two and a half years now so we could only plan in the short-term and not set up anything for the future. All of our members have continued their work without the grant and we will meet this week to decide how to proceed following this excellent result as a genuine producer organisation benefiting agriculture and horticulture in this country and pursuing the objectives of the European legislation.
“We now want to work with the RPA in ensuring that the intended benefits of this EU scheme should be used appropriately for British agriculture.”
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