HC Deb 02 July 1969 vol 786 cc419-20
27. Mr. Turton

asked the Minister of Agriculture, Fisheries and Food in which years since 1962–63 there was a gain in foreign exchange for the United Kingdom as a result of purchases of sugar under the Commonwealth Sugar Agreement when the negotiated price was below world price; and what was the gain in each year.

Mr. Hoy

In 1963 and 1964, when we paid the exporters under the Commonwealth Sugar Agreement about £39 million less and £7½ million less, respectively, than if we had bought the same quantities from them on the basis of the average world price during the year.

Mr. Turton

Is not the lesson of that answer that when world prices are unduly high the British consumer gains and that generally stability of price is good for world trade?

Mr. Hoy

I agree, and that is what we have attempted to do under the Commonwealth Sugar Agreement.

Mr. Alfred Morris

Would my right hon. Friend agree that the Commonwealth Sugar Agreement is of advantage both to the British housewife and to developing Commonwealth countries and is an agreement which might be followed in the case of other commodities?

Mr. Hoy

Indeed. The Agreement has brought benefits not only to consumers here but to the countries concerned. Judging by what I have heard in the House, from both sides, I should have thought that it met the approval of the House as a whole, although there are, of course, a few exceptions.

Dr. John Dunwoody

Will my right hon. Friend resist the efforts that are being made to get the Government to change their policy in regard to international sugar agreements of various kinds, because they undoubtedly work in the interest of consumers here and of producers in countries which are utterly dependent on sugar production?

Mr. Hoy

Yes, indeed. We have just entered into the Commonwealth Sugar Agreement. We cannot do anything about it before 1971, but we have to have these long-term agreements with the Commonwealth if we are to get the things that we require.

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