A PARLIAMENTARY investigation is to be launched into the collapse of a milk co-operative which left some South Lakeland, Furness and Eden farmers hundreds of thousands of pounds out of pocket.

The Environment, Food and Rural Affairs (Efra) committee said it would probe the impact the collapse of Dairy Farmers of Britain has had on farmers and the industry.

It would also investigate how DFOB was run, the way the Department for the Environment, Food and Rural Affairs (Defra) responded to its collapse and the lessons that could be learned.

Westmorland and Lonsdale MP Tim Farron, who called for such an investigation, said: “I welcome this. There’s lots of circumstancial evidence that famers lost out hugely and banks gained because of the timing of the collapse.”

The committee said, however, that it would not consider issues surround the receivership of the co-operarative. These are expected to be considered in a report by receivers PricewaterhouseCoopers.

The announcement of the Efra probe follows Defra Secretary Hilary Benn’s refusal to hold a Government inquiry.

Interested parties should submit their views in writing by August 31. Further submissions will be consider after a meeting held by the receivers on September 7.

There will also be an opportunity to present oral evidence.

For details on how to submit evidence, see the Efra website: www.parliament.uk/efracom.