HC Deb 23 May 1974 vol 874 cc571-4
1. Mr. Loyden

asked the Minister of Agriculture, Fisheries and Food what answer he has had from the EEC Commission on ways of releasing beef for the benefit of consumers of the Community.

The Minister of Agriculture, Fisheries and Food (Mr. Fred Peart)

The EEC Commission has recently made arrangements to enable beef held in intervention to be sold for the benefit of consumers within the Community. These include the sale of frozen beef for processing and for general consumption. In addition, a scheme for subsidised sales to non-profit-making institutions is under detailed consideration.

Mr. Loyden

Is my right hon. Friend satisfied that the steps taken so far and those he intends to take in the future will mean that beef will be available in sufficient quantity and at reasonable price for the British housewife?

Mr. Peart

That is always our aim. My hon. Friend will appreciate that we have stated our desire to renegotiate the terms affecting the CAP.

Mr. Tom King

Is the right hon. Gentleman aware that sales by non-profit-making institutions, namely, the British farmer, are already taking place? What does he intend to do about the beef situation?

Mr. Peart

That is entirely another question separate from the EEC.

Mr. Jay

Has my right hon. Friend seen the statement in yesterday's Financial Times that world prices of meat arc well below Community levels but that the consumer here does not benefit because of the 11 per cent. import duty? Will he remove the duty?

Mr. Peart

No. I am well aware of the article, which I read carefully, but I cannot take action yet.

10. Mr. Hooley

asked the Minister of Agriculture, Fisheries and Food how much of the 190,000.000 lbs of beef, now in cold storage in Common Market warehouses, it is proposed to make available to sausage factories; at what price; and what Her Majesty's Government's policy is towards this matter.

Mr. Peart

Less than 5 per cent. of this amount has been sold by tender specifically for the manufacturing of beef products, but frozen beef has now been made available for purchase at fixed prices according to quality and description, without restriction on end use

Mr. Hooley

Perhaps I should begin by declaring an interest. I am rather fond of beef. Does my right hon. Friend agree that the beef iceberg is further evidence, if any were needed, of the lunacy of the common agricultural policy? Is he willing to take an opportunity to ask the new President of France and the new Chancellor of Germany to exercise their undoubted economic talents and to reform the common agricultural policy and return, if possible, to the British system of guaranteed prices?

Mr. Peart

I think that my hon. Friend is aware that my right hon. Friend the Secretary of State for Foreign and Commonwealth Affairs has stated that we would like to reform the CAP. My right hon. Friend will very soon be making a major statement on this matter at the Council of Ministers. We shall spell out our proposals, and hon. Members will see that we want to make some positive and constructive changes.

Mr. Boscawen

Before the right hon. Gentleman becomes too excited about the prospects of returning to the old deficiency payments system and guaranteed prices, will he meet the dairy and beef farmers in my constituency? He will learn from them what a terrible disaster the old system was in the latter days of the last Labour Government, when they worked against the beef and dairy producers.

Mr. Peart

I cannot accept that. The hon. Gentleman must know that we provided a system which was admired by many countries throughout the world. The system worked. Conservative Members never altered it until they decided to go into the Community.

Mr. Tomlinson

Is my right hon. Friend aware that many farmers in my constituency are urging me, as I have urged my right hon. Friend, to consider returning to deficiency payments. Is he aware that I have the full support of the National Farmers' Union in my constituency?

Mr. Peart

I am aware that many farmers want to return to the guarantee system. I am not saying that it would be essentially a deficiency payments system. That is one method. The previous system worked very well.

Mr. Paul Dean

Is the right hon. Gentleman aware that when he was last in office he commanded some confidence among farmers generally? I readily accept that. However, does he recognise that farmers throughout the country consider that he is not prepared to support the advantages which are available under the EEC arrangements and that, equally, he is not prepared to put anything in their place? Does he appreciate that the farmers are losing the confidence in him which they once had, because they feel that he is falling between two stools?

Mr. Peart

I think that the hon. Gentleman has made a fair point. I have recognised that there is disquiet about our intermediate policy. The farmers feel that there is an absence of the support that they would have had in the Community. When I obtained an option on intervention they felt that I should quickly state the Government's position. That is why we are having close and intimate talks with the National Farmers' Union.