To ask the Secretary of State for Environment, Food and Rural Affairs if he will hold an inquiry into the circumstances surrounding the failure of Dairy Farmers of Britain, with particular reference to (a) the role of the banks, (b) when the receivers were brought in and (c) the expected financial effect on dairy farming. (283619)

Dairy Farmers of Britain (DFoB) is registered by the Financial Services Authority (FSA) under the Industrial and Provident Societies Act 1965. The FSA, in its capacity as registering authority, is working closely with the Receivers, who will be examining the reasons for the failure of DFoB and publishing their findings in a report to all creditors.

The Industrial and Provident Societies Act provides the FSA with only limited powers of investigation, and these are linked to its obligation to be satisfied that a society qualifies for registration under the Act.

The Receivers—PricewaterhouseCoopers were called in on 3 June. They have estimated the total financial costs to DFoB members to be around £83 million.