Grain Imports (Hansard, 20 April 1978)

§ 10. Mr. Litterick
asked the Minister of Agriculture, Fisheries and Food what tonnage of grain has been imported into the United Kingdom from EEC countries during the last 12 months; and what would have been the saving to the United Kingdom balance of payments had this grain been imported from other sources, free of EEC levies.

§ Mr. Bishop
Total United Kingdom imports of cereals originating in the member countries of the EEC for the 12 months ending February 1978 amounted to 2.8 million tonnes. As there is no single world price for any cereal, and because prices differ according to quality and variety, it is impossible reliably to estimate the balance of payments saving which would have ensued had alternative supplies to this grain been imported, free of EEC levies, from third countries.

§ Mr. Litterick
Does the Minister agree that that answer is singularly unsatisfactory, as it does not tell us the truth about these imports? According to other information that I have received, the cost, in terms of EEC levies, of the current importation of unmilled cereals from the EEC by compulsion is about £195 million a year. Those grains are coming in at prices to the British taxpayer and British consumer which are double the average of the available unmilled cereal prices in the rest of the world.

§ Mr. Bishop
The reply may be unsatisfactory on the basis of my hon. Friend's Question—I think that it would be helpful if we could assess what the differences are—but he should appreciate that variable levies are designed to protect our producers within the Community and to provide some form of stability and confidence. We had these objectives before. I make two points about our policy. We are seeking to obtain reasonable prices within the Community, and therefore lower prices. We also want to help liberalisation of trade with third countries.

§ Mr. Farr
Does the Minister regard the markedly increased import of sugar from EEC countries in the last year as desirable? Will he assure the House that the output of home beet growers will be preserved, and also the special position, in this country, of Commonwealth producers?

§ Mr. Bishop
The hon. Gentleman has misread the Question, which refers to grain. However, if it is helpful to him I shall write to him on the question that he wishes to ask.

§ Mr. Jay
As the EEC Commission's own agricultural board shows that these import levies on wheat, maize and barley are all running at about 100 per cent., is it not obvious that this must be adding to the cost of food in this country?

§ Mr. Bishop
I draw my right hon. Friend's attention to the reply that I have given, which is that one has to protect our own producers. At the same time, the two points that I have already made will, if we can make progress on them, make a substantial contribution to saving and to liberalisation, which is another factor.

§ Mr. Jopling
As the Minister of State has told us that we imported 2.8 million tonnes in the past year, would it not give a fairer and complete picture if he were to refer also to the exports of grain from this country? Am I not right in thinking that we exported almost 1 million tonnes in the first three months of this year alone?

§ Mr. Bishop
These are factors which have to be taken into account, but the main Question was about the cost of grain coming into the country through the levy system.