Announcing the recommendations of the LMC review report, the Minister said: "In August 2009, I commissioned an independent strategic review into the LMC, to address the organisation’s functions, structure and funding arrangements. The completion of this report is a helpful step towards finding a model for the delivery of the LMC’s important services to those stakeholders who pay a levy to the organisation.
"As part of the review process, the views of stakeholders were sought and I am encouraged that extensive feedback was received. The report states that there is a desire for certain core functions to continue, and the possibility of some new areas. It also recognises that the LMC is working with significant restraints due to EU State Aid rules and its NDPB status, which places it under the Government framework for accounting purposes."
The Minister said that she valued the contributions that had been made to the review from the red meat sector and was publishing the report for industry information and to provide interested parties with an opportunity to read it in context.
Referring to the options presented in the report, the Minister said: "The report’s central proposal is that the LMC should be abolished and re-established as a new commercial organisation. The report considers that this would offer more value to the promotion of the qualities of local beef and lamb, as it would not be bound to EU rules.
"The report also acknowledges that the delivery of this option is dependent on a number of constraints being managed, such as human resource issues, the transfer of assets and legislative considerations. The wider cost implications will also have to be taken into account.
"It would be negligent of me to make such a significant decision in the absence of any proper analysis of the complexities potentially involved. That is why I have commissioned a business case to be developed to evaluate and cost the report’s recommendations. A working group, including senior DARD and LMC staff, has also been established to facilitate this programme of work. I expect to take receipt of the business case by June and will consider it carefully before making my decision.
"In the interim, it will be important for the LMC to continue to provide its valued services to the red meat sector and to respond to the needs of industry."
Notes to editors:
1. The report, including an Executive Summary, is available on the internet at http://www.dardni.gov.uk/lmc-review-final-report.
2. The LMC, which was established in 1967, has the general duty of assisting the development of the livestock (cattle and sheep) and livestock products sectors of the local agri-food industry. It provides a range of services to producers and meat traders including market intelligence and promotion; beef and lamb classification. It also administers the Farm Quality Assurance Scheme and market support arrangements for local beef and lamb (the latter as agent of the Rural Payments Agency). It is currently spear-heading the work of the Red Meat Task Force.
3. Following a procurement competition, Price Waterhouse Coopers (PwC) conducted the independent strategic review of the LMC.
4. All media queries to DARD Press Office on 028 9052 4619. Out of office hours please contact the Duty Press Office via pager number 07699 715 440 and your call will be returned.
