European Economic Community (Hansard, 14 July 1971)

§ 7. Mr. Strang
asked the Secretary of State for Scotland if Great Britain enters the European Economic Community, whether Her Majesty's Government will be free to continue beyond the transitional period all the production grants at present payable to Scotland's hill farmers.

§ The Under-Secretary of State for Home Affairs and Agriculture, Scottish Office (Mr. Alick Buchanan-Smith)
The need for the production grants will depend on the extent to which producer prices move 470 upwards when we are in the enlarged Community. In any case, as the White Paper made clear, we shall be able to give the continuing assistance needed to maintain the incomes of farmers in the hill areas.

§ Mr. Strang
When will the Minister stop flannelling on this issue? Is it the case that he has not received from the E.E.C. an assurance that the British Government are free to continue such production grants?

§ Mr. Buchanan-Smith
The hon. Gentleman should realise that in the Six already there is a considerable number and variety of regional aids to agriculture in the difficult areas, and that we have had recognition from the Six, as my right hon. and learned Friend the Chancellor of the Duchy of Lancaster has reported, that we should be free to look after the income problems of our hill farmers, which is the important thing. I do not think that a particular pattern of production grants needs to be sacrosanct.

§ Mr. Clark Hutchison
If production grants are not allowed, how does my hon. Friend propose to keep the farmers' incomes up?

§ Mr. Buchanan-Smith
As I said in my original reply, we expect an increase in producer prices, and that will help the incomes of such farmers. There are certain aids in Europe, though not necessarily exactly the same pattern of aids as we have now. We are confident that we shall be able to carry on many of the aids or devise new ones which will help farmers in those areas.

§ Mr. Grimond
Does the Minister accept that his answers this afternoon have hardly clarified the matter? Will he make it clear that the Highlands and Islands Development Board can and will continue in its present form if we enter the E.E.C. and that the grants now payable to crofters, whether called production grants or something else, can also continue?

§ Mr. Buchanan-Smith
The right hon. Gentleman has raised the wider question of regional aid to the Highlands and Islands Development Board. That is a different question. There should not be any difficulty in maintaining the structural aids already given to crofting.

§ Mr. Maclennan
Does the Minister realise that he is being unnecessarily unhelpful, and that when attempts are made to elicit information about production grants and the Highlands and Islands Development Board his own cause would be better served by being more forthcoming? Will he now give the categorical assurances which have been sought, that production grants can be paid under the Community regulations, and are being paid, for example, on sheep retained for breeding purposes in France?

§ Mr. Buchanan-Smith
The hon. Gentleman should be rather more realistic and listen to what I said. I have already pointed out that in the Six there are many regional aids. The hon. Gentleman must realise that over the years under both Conservative and Labour Governments the exact pattern of aids to farming in difficult areas has never been the same. It has changed after consultation with the National Farmers Union. I cannot give a guarantee that an exact pattern will continue. What I will say is that we believe that it is perfectly possible to maintain those aids which are vital to help the incomes of those farming in the difficult areas.

14. Mr. W. H. K. Baker
asked the Secretary of State for Scotland what assessment he has made of the effects of the Treaty of Rome on the present systems of support to the fishing industry with regard to storage, daily rate and operating subsidies, should Great Britain join the European Economic Community; and if he will make a statement.

§ Mr. Buchanan-Smith
As the Community is still considering its regulations on State aids in the fishing sector, it is not possible to say what the final position will be.

Mr. Baker
That is a most extraordinary reply.

§ Mr. Speaker
That is a most extraordinary supplementary question.

Mr. Baker
Does my hon. Friend realise that that is an extraordinary answer? I should have thought that by now his officials could have got down to making an appraisal of what is likely to happen, and that is precisely what I am asking.

§ Mr. Buchanan-Smith
My hon. Friend should realise that, though the truth may sometimes be extraordinary, it is the truth that the Community is still considering its regulations in this matter. I appreciate that among the fishing matters which have been discussed limits and marketing have been the chief concern, and I appreciate that under the appropriate articles of the Treaty of Rome they could give cause for concern to the fishing industry, but I assure my hon. Friend that we are watching this issue carefully in the negotiations. However, until we know what the regulations are, it is impossible to comment upon them.

§ Mr. Strang
As the Minister has just returned from Brussels, and as a tremendous change in the Government's position took place when he was there, may we have an assurance that this matter will be settled one way or another—namely, whether it will be left to 1973 or whether the six-mile proposal will be accepted before the crucial debate in October?

§ Mr. Buchanan-Smith
My right hon. and learned Friend the Chancellor of the Duchy of Lancaster hopes to make a statement after Questions today, and I ask the hon. Gentleman to await that.