HC Deb 03 July 1975 vol 894 cc1657-9
5. Mr. Cope

asked the Minister of Agriculture, Fisheries and Food if he is satisfied that British egg producers can now trade in the European Community on free and fair terms of competition.

39. Mr. Hardy

asked the Minister of Agriculture, Fisheries and Food if he is satisfied with the working of existing arrangements in preventing further importation of eggs at prices which are unfairly competitive.

Mr. Bishop

Taking account of the situation in our egg market my right hon. Friend approached the European Commission last Friday requesting action under Article 135 of the Treaty of Accession in the interests of producers here. In response the Commission has authorised the suspension until the end of October of the payment of monetary compensatory amounts on eggs and the doubling of the subsidy paid on exports to selected markets outside the Community.

We welcome this recognition by the Commission of the need for special measures to deal with the situation in the United Kingdom egg market. The suspension of monetary compensatory amounts removes a subsidy that has been increasing on French eggs sent to this market. The increase in export restitutions means that the financial incentive to Continental traders to export to the most important third country markets will be three times that payable on exports to the United Kingdom. These measures, together with the French Government's continuing programme for slaughtering laying hens, should relieve the pressures on our market. We shall now have to see whether the measures announced prove sufficient. But we shall continue to watch the situation closely and to maintain continuous contact with the Commission.

Mr. Cope

Is the Minister blissfully unaware of the fact that this situation has not developed over the past few weeks but has been building up over the past 12 months? Is he also aware that there are still accession compensatory subsidies to be paid, and still no restrictions on imports? He seems very pleased with the temporary improvement that he has got, but is that all that the Minister asked for in Brussels?

Mr. Bishop

I think that the hon. Gentleman is unaware of the efforts that my right hon. Friend has made in Brussels over recent months in considering the problems facing the industry. Article 135 of the Treaty of Accession refers to difficulties which are serious and liable to persist. I am very grateful that the Community has now taken effective and quick action in this respect. I do not think that we should underestimate the value of this concession in terms of the discouragement of imports.

Mr. Corbett

Is the Minister aware that while Brussels fiddles about with this problem, egg producers are facing continuing and heavy losses? Will he give an undertaking that unless the French Government rapidly carry out their pledge to slaughter 2 million laying hens, he will advise his right hon. Friend to put an immediate ban on further French egg imports until that programme has been completed?

Mr. Bishop

I assure my hon. Friend that on the French culling scheme, the slaughter of up to 2 million hens is now in operation. I understand that already I million birds have been destroyed. This should help to firm the Community market. The measures I have just announced should help to improve the competitiveness of our own industry.

Mr. Clegg

Will the Minister explain in simple terms why this and other Governments are so slow to take action against dumping not only eggs but many other products which affect my constituency?

Mr. Bishop

The hon. Gentleman should be aware that sometimes these matters are difficult to establish. We have certainly impressed upon the Commission the difficulties facing our own industry. I want to underline the fact that monetary compensatory amounts have been paid to importers, thus reducing the cost of imported supplies. From now on an average of 1.495p per dozen will be the amount which importers will bear.