Oral - Proposed Red Meat Industry (Wales) Measure

I am pleased to lay the proposed Red Meat Industry (Wales) Measure before you today. It is primarily enabling in scope and will allow Welsh Ministers to set out, in subordinate legislation and in guidance, the framework within which the red meat industry in Wales can be developed and promoted.

The proposed Measure will provide Welsh Ministers with the power to make detailed provision in regulations on increasing efficiency and productivity in the industry, improving marketing, improving and developing services that the industry provides, or could provide, to the community, and improving the ways in which the industry contributes to sustainable development.

The red meat industry is defined in the proposed Measure as all of the activities comprised in breeding, keeping, processing, marketing and distributing cattle, sheep and pigs, both alive and dead. It also includes producing, processing, marketing, manufacturing and distributing products derived from those animals, apart from milk and milk products, fleece wool and hides.

The proposed Measure sets out a framework within which people involved in primary activities, such as breeding and rearing, and those involved in secondary activities, such as slaughtering, exporting or promotion, may be subject to a levy fee. That continues arrangements that have been in place since the establishment of the Meat and Livestock Commission under the Agriculture Act 1967. Since then, those engaged in the red meat industry have paid a compulsory levy so that activities that small farmers and processors could not afford individually, such as external promotion and marketing and research and development, can be provided for wider general benefit.

Since 1967 there have been a number of changes to these arrangements. On 1 April 2007, the Welsh Levy Board was established and took on the role of providing a mechanism by which the red meat levy and the associated support arrangements could be delivered in Wales. This was necessary because of restructuring arrangements at a UK level. Following the Radcliffe report into the mechanisms for agricultural sectoral support, this was the only practical option for Wales. However, it was never considered to be a long-term solution. I am therefore introducing this proposed Measure today to give Welsh Ministers the powers needed to be able to undertake this directly.

Since 2003, and the formation of Hybu Cig Cymru, the levy collected on behalf of Wales by the Meat and Livestock Commission was given to Hybu Cig Cymru under a delegation agreement so that these important promotion and development activities could take place. Hybu Cig Cymru has been instrumental in securing European recognition for the two key products of Welsh lamb and Welsh beef with protected geographic indicator status. This is a significant example of the kind of benefits that can be gained from a centralised co-ordinated approach that is financially supported through the levy fee.

I do not propose to make changes to the current delegation arrangements and it is envisaged that a new delegation arrangement will be put in place between the Welsh Ministers and Hybu Cig Cymru that will allow Hybu Cig Cymru to continue to promote and develop the red meat industry in Wales as before.