UK: Small businesses take brunt of increased plant health inspection charges
The Fresh Produce Consortium (FPC) is demanding that Fera immediately introduces efficiencies and reduces the frequency of checks on reputable traders. FPC objected to the proposals during Fera’s consultation last year and had called for a full review of the plant health services before any consideration of increased fees and charges.
Fera is set to phase in increases over two years in order to reach full cost recovery, resulting in annual plant health import checks costing £1.7m in 2012, £2.2m in 2013 and £2.94m in 2014. There will be significant increases in plant passport fees, plant health licensing and services, seed potato certification and import services for potatoes originating in Egypt.
"Fera is going ahead with this extortionate escalation in charges, despite our grave concerns about the impact on UK growers and importers," said Nigel Jenney, Chief Executive of FPC. "We demand that Fera makes immediate efficiencies and targets its resources to where the real plant health problems lie, outside fresh produce and cut flowers. Without these immediate improvements our industry should not have to bear exorbitant costs for a continually inefficient service."
"Even with increases phased in over two years many sectors of the industry will struggle to absorb these costs. There is a risk that the UK will become less competitive and trade will move elsewhere in Europe where these services run efficiently," said Nigel Jenney. "In the current economic climate no one wants UK consumers to see a potential increase of 1.9 per cent in prices, but it is a real concern for the supply chain which will have to bear these additional costs."
“The lack of sufficient notice period is unacceptable as many long term contracts are in place already and there is no possibility of suppliers passing on costs to their customers. Given the magnitude of these increases it means that many contracts will be fulfilled at a financial loss to small companies which are struggling in these difficult times. Given the Government’s need to develop small businesses to improve our economy, it’s unbelievable that Fera is targeting thousands of these same companies with increased costs,” added Nigel Jenney.
Plant health issues arising from fresh produce and cut flowers are minimal; accounting for less than one per cent of all consignments. Given the UK Government’s commitment for efficient governance, FPC believes that Fera should be targeting imports of commodities from countries which are identified as carrying greater risk. Five countries (Dominican Republic; Ghana; India; Pakistan; Vietnam) are responsible for 77 per cent of issues with fresh produce and cut flowers, and just four types of commodities (aubergine; bitter melon; mango; sweet basil) result in 86 per cent of interceptions in the UK.
The fresh produce industry is asking for the support of its customers, including retailers, to challenge Fera’s decision and to call for a more efficient plant health inspection service.
For more information:
Sian Thomas
Fresh Produce Consortium
Tel: +44 (0) 1733 405792
Mob:+44 (0) 7584 99 5903
www.freshproduce.org.uk