HC Deb 30 June 1975 vol 894 cc1016-9
56. Mr. Biffen

asked the Minister of Overseas Development what effect there has been on the exports of beef from Botswana, permitted under the Lomé Convention, of the recent beef levies applied by the common agricultural policy; and if he will make a statement.

Mr. John Grant

The Botswana Government have estimated that in the three months following the resumption of beef exports to the United Kingdom in March of this year, under the provisions agreed at Lomé, the payment of Community levies, amounting to about £1 million, has reduced receipts from sales to the United Kingdom market by 46 per cent.

Last week the Foreign Minister's Council in Luxembourg accepted the view put forward by my right hon. Friend the Secretary of State that the Community had a moral commitment to put this situation right and agreed to reduce the levy payable on ACP beef to 10 per cent., with the difference being made up by a 90 per cent. export tax. This means that 90 per cent. of the difference between the production price and the sales price will now accrue to the Botswana Government and not to the Community.

I think it is fair to say that this, together with certain technical improvements to the present arrangements already proposed by the Commission, means that the most important industry of this very poor country will be able to continue its activities on an economic basis.

Mr. Biffen

Will the hon. Gentleman confirm two points—first, that the arrangement initiated by his right hon. Friend the Foreign Secretary last week at the Council of Ministers was decided upon in the teeth of sustained French opposition and, secondly, that the Government regard the arrangement that was then concluded as providing a valuable precedent for the progressive liberalisation of the provisions of the CAP?

Mr. Grant

I cannot confirm either of those points. I have no official information about what happened in the Council of Ministers' meeting.

Mr. Tugendhat

It is in the Financial Times.

Mr. Grant

I am sure it is a good source, and it is probably right, but I do not have the information officially. I can, however, tell the House that the Botswana Government are satisfied with the arrangement that has been made. I think that that confirms the necessity of having a British Minister at the negotiat- ing table on behalf of the developing countries.

Mr. Jay

If the import levy is to be replaced by an export tax, does that not mean that the price will stay as high as it was, and that therefore the volume of exports is not likely to recover?

Mr. Grant

I think not. That is not the conclusion that was drawn by the Secretary of State.

Mr. Tugendhat

If the hon. Gentleman does not have official information about what happened, may I inform him that the decision was taken as a result of a majority vote in the Council? Does he agree that this great success by the Foreign Secretary, about which we are all pleased, shows the importance of majority voting on occasion, and will he draw that to the attention of such of his colleagues as, for instance, the right hon. Gentleman the Secretary of State for Energy?

Mr. Grant

I thank the hon. Gentleman for that unofficial confirmation of unofficial reports, and I shall draw my right hon. Friend's attention to what he has said.

Mr. Dalyell

Is not the truth of the matter that the Botswana Government were so pleased that they got the Foreign Secretary out of his bed at an ungodly hour to tell him how pleased they were?

Mr. Grant

Again, from unofficial reports, I understand that to be the case.

Mr. Biffen

Does the hon. Gentleman agree that whatever may be our views about membership of the Community, a thoroughly unsatisfactory state of affairs is revealed if the discussions in the Council of Ministers cannot be reported to this House in such a way that we know there was sustained French opposition, and if we have to rely upon the Financial Times, the authenticity of which I am prepared personally to underwrite? I believe that the hon. Gentleman believes the same.

Mr. Grant

I remind the hon. Gentleman that in the House last week, when the Foreign Secretary was answering Questions he referred to this matter in some detail. There is no reason why the hon. Gentleman should not put down a Question to the Foreign Secretary about what one might call the intimate details of the negotiations, but I am not in a position to give them today.

57. Mr. Hooley

asked the Minister of Overseas Development if he will authorise special aid grants to Botswana during the current financial year over and above the programme already agreed.

Mr. John Grant

I have received no requests for additional aid to Botswana and I therefore have no action of this kind in mind.

Mr. Hooley

Does my hon. Friend agree that the recent behaviour of the Common Market towards Botswana's beef exports calls in question the good faith of the Lomé Convention? Will he assure us that Her Majesty's Government will not tolerate any further breaches of the spirit and intention of that agreement, such as have occurred in this instance?

Mr. Grant

I think that the vigorous action taken by the Secretary of State on this subject speaks for itself.