Nothing to fear from HGCA review – NFU

01 September 1997

"Nothing to fear from HGCA review" – NFU

By Boyd Champness

ARABLE growers have nothing to fear from the Governments review of the Home-Grown Cereals Authority (HGCA), according to the National Farmers Union.

On Friday, junior farm minister Lord Donoughue announced that the Government would be reviewing the role of the HGCA and its future.

A statement from the Ministry of Agriculture, Fisheries and Food, quoting Lord Donoughue, said: “I can assure you it will be a thorough review which will start by asking whether there is a continued need for the authority at all”.

But NFU cereals advisor Jonathan Pettit said reviews on non-departmental public bodies were carried out every five years as standard practice.

The HGCA was established 32 years ago to improve the production and marketing of home-grown cereals, and more recently, oilseeds.

Mr Pettit said it would not make economic sense for the Government to axe the authority to save money, because it is almost entirely funded by growers, merchants and processors through statutory levies.

The Government contributes only £105,000 a year to the authority, with the bulk of the money going towards the market information department. Growers, merchants and processors contribute about £8.5 million annually through levies, which covers everything from running costs to research and development.

Cereal growers pay 40p per tonne to keep the authority functioning, merchants pay 3.5p/t, cereal processors in the animal feed industry contribute 4p/t and cereal processors in the food industry 8.25p/t. Oilseed services are totally funded by growers at 65p/t.