Catalogue description Ministry of Agriculture, Fisheries and Food: British Wool Marketing Board: Wool Guarantee Scheme (WGS file series)

The British Wool Marketing Board (BWMB) was established in 1950. Its powers are laid down in the British Wool Marketing Scheme (Approval) Order 1950 and The Agricultural Marketing Act 1958. A farmer run organisation which operates a central marketing system for UK fleece wool, with the aim of achieving the best possible net return for producers. Wool was not a supported product under the CAP, nor following the ending of the Wool Guarantee in 1993, under domestic legislation. Returns to producers for the sale of wool are now based on prices achieved at public auctions organised by the Board.

WGS is the lead series which deals with policy and liaison matters concerning the British Wool Marketing Board. The Sheep and Livestock Subsidies Division was responsible for the WGS series.

Field of work covered includes policy work for the Wool Guarantee Scheme and financial arrangements with the BWMB, Policy review at industrial level and general oversight of the activities of the BWMB.

The ending of the Wool Guarantee (under which farmers were guaranteed a fixed price for their wool) signalled a new era for the Board in which their activities were placed on a wholly commercial footing. This has involved a significant measure of adjustment, including the loss of nearly half of the BWMB staff and a major effort to substantially reduce the Board's operating costs. This has been reflected in its reliance and relationship with MAFF.

The British Wool Guarantee Scheme

Review: Submissions, recommendations and action points on a major policy review and financial survey of the British Wool Marketing Board (BWMB).

The Guarantee: Papers relating to setting the guaranteed fixed price to producers for their wool. In 1993 the Government ended the Wool Guarantee and returns to farmers were determined on the price the BWMB were able to achieve at Public Auction less the Board's own administrative costs.

Appointments and The Board: Under the Agricultural Marketing Act 1958, Ministers are required to appoint to each Agricultural Marketing Board at least two persons who are suitably qualified in a particular field of expertise. i.e. sheep & wool. Also documents relating to the liability of BWMB Directors for both Income and Corporation Taxes.

Financial Agreements: In the early 1990s the BWMB built up a financial reserve of £10.7m, exempt from Corporation Tax by virtue of section 509 of the Income and Corporation Taxes Act 1988. The Financial Arrangement between Agriculture ministers and the BWMB sets out the terms on which the BWMB can make use of that reserve and how it should be managed.