COMMONWEALTH SUGAR AGREEMENT (Hansard, 20 June 1967)

§ Q3. Mr. Tilney
asked the Prime Minister what is the approximate average cost in each of the last three years to the British taxpayer of the Commonwealth Sugar Agreement; and whether he will seek to guarantee the equivalent sum in aid to the signatories of that Agreement who are developing countries.

§ The Prime Minister
No cost falls on the Exchequer, Sir. The rest of the Question does not therefore arise.

§ Mr. Tilney
As consumers in this country are nearly all taxpayers, will the Prime Minister agree that the average expenditure on the Commonwealth Sugar Agreement in this country is of the order of £60 million a year and that the more the economies of developing countries are diversified the better it will be? If it is possible, would it not be better for Europe to consume more cane sugar and less beet sugar?

§ The Prime Minister
The hon. Member is right, of course, that the way in which this Agreement is honoured is by the consumer in effect paying for it under the equalisation arrangements. Certainly the figures of the order of those quoted by the hon. Member represent the kind of contribution we are making. Compensation would not solve the problem of finding work for those currently engaged in the sugar plantations and sugar processing industries, but, as the hon. Member knows, my right hon. Friend is this week presiding, over a conference of representatives of sugar-producing members of the Commonwealth.

§ Mr. James Johnson
Would my right hon. Friend agree that without the Agreement islands with a monoculture economy, particularly Mauritius and Barbados, would suffer almost certain economic death without some help? Will he bear this constantly in mind during the negotiations?

§ The Prime Minister
My hon. Friend is right that, whereas we are concerned about the Commonwealth position as a whole, islands and other areas with a monocultural economy would be particularly hard hit. It is this problem my right hon. Friend is seeking to deal with in his discussions with representatives of the Commonwealth sugar producers.