News Pesticides update


Due to EU regulations, UK ornamental growers must constantly review pesticide uses and approvals; however, with few pesticides registered for ornamental use by manufacturers, the nursery industry has to fund and carry out their own efficacy and toxicity trials to gain approval for use. The HDC has provided a stirling service to the UK industry in funding SOLAs and EAMUs; meanwhile, many other similar organisations in EU member states also undertake trials. Over the past two years Dove


Associates’ John Adlam has been representing the HTA at the EU Technical Working Group and providing them with UK data on ornamental pesticide approvals. The group has now compiled an English language database aimed at enabling and improving co-operation between EU Member States in the field of Minor Uses. In addition, the database will provide information for registrations (in accordance with Article 40 and 51 of the Regulation


(EC) No 1107/2009) to help approval applications. The database, which is now ready to support new applications, aims to avoid duplication of trials’ effort and utilise EU regulations that allow the use of data across EU member states. The working group, which meets


twice a year, has completed a full list of all approvals in the contributing member states: it covers thrips, whitefly, mealy bugs, powdery mildew, leaf spots, downy mildew, growth regulators, adjuvants, botrytis, leafhoppers and box blight. The group also links in with the ENA, the EU Minor Uses Commodity Expert Group and OECD Group on Minor Uses. The countries represented at the recent meeting in March were Holland, Belgium, France, Sweden, Germany, Italy and the UK. John Adlam comments, ‘The working group brings together ornamentals advisers and support personnel and is proving to be a valuable exchange of information on


Dove Associates’ John Adlam


the efficacy of various products on pests and diseases. It also provides pointers to new products we should be looking at in the future. The HTA is at the heart of this work, providing the tools to make available the best products to maintain our quality ornamental crops.’


Edible plants and VAT


qualify to be zero rated. Below are examples to show how VAT can impact. Lavender plants can be produced, sold and used for ornamental and culinary purposes, but only plants sold specifically for culinary purposes can be zero rated, and then only if the pot is less than 2 litres. If the advert makes no reference to culinary use, or the pot is 2 litres or larger, VAT will be due. This can make a considerable difference, not only to the price payable by the consumer, but also to the margin achieved on the sale. Fruit-bearing trees and shrubs are


While suppliers need to set price points that will attract customers, they must also make a reasonable margin to cover their direct and indirect costs. VAT can also be critical for items that


clearly dealt with in an HMRC public notice. However, the list of zero-rated items is typically restricted to those species and varieties that were commonly grown in the UK in the 1970s, when VAT was first introduced to the UK. This has meant that many species now considered normal to the UK market are denied zero rating, simply because they do not appear on the HMRC’s list of plants. However,


8 HTAnews I May 2013 I www.the-hta.org.uk


this does not mean that these species and/or varieties are not eligible for the zero rate. Olive trees are not included in the


HMRC’s definitive list of plants eligible for the zero rate, and are arguably not zero rated, even if the fruit is produced and consumed in the UK. This illogical outcome has been successfully challenged, with the producer now able to sell olive trees at the zero rate of VAT. While it does not create a change in the HMRC’s policy or current list of zero-rated plants, it does suggest that the HMRC is willing to listen. With VAT celebrating its 40th anniversary in the UK this year, this could provide the perfect opportunity for the HMRC to revise its list of zero-rated edible and fruit-bearing plants and assist businesses to apply a standard approach.


_For more information about VAT, HTA members can take advantage of the


VAT Advice Line featured on page 23 or email vat@the-hta.org.uk


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