HC Deb 04 November 1976 vol 918 cc1597-8
3. Mr. Newens

asked the Minister of Agriculture, Fisheries and Food if he is satisfied that the British glasshouse industry is not currently paying more for fuel than any of its competitors in the EEC; and if he will make a statement.

The Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food (Mr. Gavin Strang)

The price of oil and other inputs reflect a variety of factors, which may vary from one EEC country to another. The Commission has produced guidelines on fuel aids aimed at preventing distortion of competition. Under these guidelines all national fuel aids had to end before 1st July 1976.

Mr. Newens

Is my hon. Friend aware that the average price paid for the standard fuel oil used by the Lea Valley growers is now, after the latest rise, 24p a gallon, and that for the same amount of energy Dutch growers pay the equivalent of 14p? Does this not represent a tremendous distortion of competition, and is it not high time that we either told our European partners that they must do something or took action ourselves to defend our highly efficient industry?

Mr. Strang

I am aware of my hon. Friend's deep interest in the horticulture industry. He is referring specifically to Dutch natural gas and this is the one energy input that is not equalised, although the Dutch Government's policy is to equalise the price of gas with oil.

Mr. Wells

The hon. Gentleman has said that fuel aids must end by a certain date, but does he not agree that the specific problem of the Dutch Government and natural gas must be re-examined? Will he consider at the earliest moment, in the Council of Ministers, or elsewhere, tackling the problem of the special position of the Dutch, which is extremely unfair to British growers?

Mr. Strang

The hon. Gentleman might recognise that there is a distinction between the more obvious examples of unfair competition as a result of subsidisation and the price at which natural gas should be sold. I take the hon. Gen- tleman's point, but it is for the Commission to ensure that fairness operates throughout the industry.

Sir David Renton

Is the Minister aware that most of our glasshouse growers became dependent on oil some years ago before the tremendous increases in the price of oil, and that because of the places in which they are situated they cannot convert to natural gas? Will he bear these factors in mind?

Mr. Strang

I must make it clear that the Government are anxious to encourage the horticulture industry and that they have taken steps to do so. The most important thing that we can do is to advise the industry on ways in which to minimise energy usage.