HC Deb 20 March 1975 vol 888 cc1844-5
11. Mr. Moate

asked the Minister of Agriculture, Fisheries and Food if he is satisfied with the present arrangements for taxes on lamb imported from New Zealand.

Mr. Bishop

My right hon. Friend made the Government's views clear at the meeting of Agriculture Ministers on 4th March, that the Community tariff of 20 per cent. ad valorem is unnecessarily high, and we shall wish to seek its elimination, or at least reduction as far as United Kingdom imports are concerned, at the earliest opportune time.

Mr. Moate

I welcome the Government's intention to eliminate or reduce the tax, but does not the fact that the Government increased the tax on 1st January and are maintaining it represent a dishonouring of their election commitments and their manifesto? Should not the Minister endeavour to button up this item before turning his coat?

Mr. Bishop

The hon. Gentleman should realise that the wholesale prices of New Zealand lamb this year started at 28.6p a lb. compared with 33.5p in 1974. By 3rd March the price had fallen to 26.8p a lb.

Mr. Geraint Howells

Is the Minister in favour of importing more lamb from New Zealand and elsewhere, or does he prefer to increase production from the hills and marginal land of Britain?

Mr. Bishop

The hon. Member will be aware of the steps taken in respect of the use of grassland and the great encouragement there to help our industry. To date, about half of our consumer requirements have been met by New Zealand imports. I remind the hon. Member of the reply I gave just now that we shall seek the elimination or reduction of the tax on lamb imports into Britain.

Mr. Jay

What is the purpose of the tax?

Mr. Bishop

The purpose of the tax is to protect our own industry in relation to this and other commodities. A reduction of the tax, which I think was the implication of my right hon. Friend's question, is a matter of priorities. We have thought it far more important to modify the common agricultural policy at this stage, particularly the beef régime on which we have had success.