HC Deb 20 April 1978 vol 948 cc655-7
8. Mr. Newens

asked the Minister of Agriculture, Fisheries and Food if he will make a statement on progress made towards the equalisation of the costs of fuel used by glasshouse growers in the United Kingdom and other countries in the EEC.

Mr. Strang

The cost of oil to British growers does not differ greatly from the cost of that used in other EEC countries, although Dutch growers still derive some benefit from their onshore resources of natural gas. The Dutch Government are already engaged on a programme of equalisation of gas and oil prices and full equalisation should be achieved in just under a year's time.

Mr. Newens

Does my hon. Friend agree that the Dutch producers have enjoyed, are enjoying and will continue to enjoy, unless something is done about it, lower prices for their fuel than British producers will have to put up with for the oil equivalent? In these circumstances, is it not high time that some unilateral action was taken to end this unfair competition and to give our efficient producers the opportunity of being able to sell their products on a level with the Dutch?

Mr. Strang

No one has been a more persistent campaigner in this area than my hon. Friend. It is a reflection of his efforts and those of the British Government that we have achieved a situation where the Commission has communicated with the Dutch Government and that they have embarked on this equalisation programme. By 1st April next year they will have equalised their gas and oil prices, which is what my hon. Friend is seeking.

Mr. Costain

How can the Minister make such a statement? Is he aware that the NFU has produced evidence that gas in Holland costs 9.2p per therm and that gas in the United Kingdom costs 17.7p per therm? Even related to oil prices, there is a big difference. Will he take a personal interest, get the facts clearly in mind, and do something about it?

Mr. Strang

We are taking a very great interest in this matter. We have achieved a policy of equalisation of gas and oil prices. Hon. Members must accept that gas is much cheaper in Holland, because it is an onshore source. Notwithstanding that, the price has been increased to bring it into line with that of oil.