HC Deb 29 January 1976 vol 904 cc657-9
10. Mr Gould

asked the Minister of Agriculture, Fisheries and Food what progress has been made in amending the Common Agricultural Policy so that it more nearly meets the needs of the United Kingdom.

15. Mr. Marten

asked the Minister of Agriculture, Fisheries and Food if he will make a statement on the EEC stocktaking document.

38. Mr. Hooley

asked the Minister of Agriculture, Fisheries and Food what proposals for the reform of the Common Agricultural Policy were discussed at the recent meeting of EEC Agriculture Ministers.

46. Mr. George Rodgers

asked the Minister of Agriculture, Fisheries and Food if he will make a statement on the negotiations to reform the Common Agricultural Policy.

Mr. Peart

The Commission's proposals for EEC agricultural support in 1976–77 take account of the discussions of its stocktaking report and include important proposed changes, especially in the milk and cereals sectors. The proposals were discussed at last week's Council. I believe that, when decisions are taken, further progress will be made in improving the operation of the common agricultural policy.

Mr. Gould

Given that the price of most basic foodstuffs is now much lower outside the EEC than within it, and given the increasingly desperate attempts being made to deal with growing food surpluses, particularly the beef mountain, which is now largely inedible, does my right hon. Friend agree that the next meeting of Agriculture Ministers is likely to be of crucial importance? Does he accept that it is essential he gets major reforms which will allow us to move away from the senseless intervention system and go back to the system which served us so well in the past?

Mr. Peart

My hon. Friend should realise that Governments, including Labour Governments, have always practised intervention in this country for cereals and potatoes. We have said that we do not accept that permanent intervention should be the sole method of support for beef. That is why I made my statement in Brussels on the matter. The talks are continuing.

Mr. Marten

Is the Minister aware that £54 million which should have been used for restructuring agriculture was transferred from the Common Market budget in order to subsidise the skimmed milk mountain and similar projects? Does he accept that that is an absolute scandal for the CAP which should be put right in the stocktaking document and in the next price review? May we have an assurance that that will be done?

Mr. Peart

The hon. Member for Banbury (Mr. Marten) is a member of the Scrutiny Committee and he will remember that I spoke to it in detail about this matter. I believe that we should have co-responsibility in relation to milk surpluses and price fixing based on the efficient farm. These are all matters which have been raised by the British in support of our German colleagues, who initiated the stocktaking document.

Mr. Hooley

Does my right hon. Friend accept that the CAP must force the cost of food to ordinary people in this country ever upward, irrespective of the trend of world prices, at variance with what my right hon. Friend the Secretary of State for Prices and Consumer Protection is trying to do and completely contrary to the Government's anti-inflation policy?

Mr. Pearl

I cannot accept my hon. Friend's comment. I believe that some commodities are cheaper within the Community than on world markets. It is our aim to improve the CAP, which will enable us to guarantee adequate supplies for our consumers.

Mr. Rodgers

Does my right hon. Friend agree that, apart from increasing the price of food artificially, thereby sitmulating inflation, the CAP is absorbing no less than 75 per cent. of the total Community budget? Does not my right hon. Friend agree that we have entered an economic madhouse?

Mr. Peart

I cannot accept my hon. Friend's suggestions. The CAP is practically the only policy which is working specifically in Europe. We must have a pricing system which gives a fair return to the farmer as well as to the consumer.

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