HC Deb 20 April 1978 vol 948 cc644-6
2. Mr. Henderson

asked the Minister of Agriculture, Fisheries and Food what progress has been made in agreeing a new system for calculating monetary compensatory amounts.

The Minister of Agriculture, Fisheries and Food (Mr. John Silkin)

The Commission has not submitted formal proposals to change the market rate used for the calculation of monetary compensatory amounts following its report on the European unit of account. It has promised to make proposals for changes in the calculation of the MCAs of some individual products, including pigmeat, in time for decisions to be reached in the context of the prices package.

Mr. Henderson

Is the Minister aware that my farming constituents, particularly those involved in pig production, view this matter with exasperation and bewilderment? Is he further aware that there is unfair competition from the Danes and others who are heavily subsidised through the system? Will he be more forthcoming and give a forecast of when he believes this matter will be resolved?

Mr. Silkin

Not only the hon. Gentleman's constituents but many people throughout the United Kingdom feel this way. As the hon. Member knows, we have been pressing for a proper and reasonable recalculation of the pigmeat and other MCAs which distort competition so much. What makes a slight difference now is that the Commission has promised to put proposals on the table for the first time. Also, we are not alone any more; the French and Italians are with us on this. If I am to make a forecast, I have no doubt that there will be some change—I hope a beneficial one—in the prices package.

Mr. Corbett

Will my right hon. Friend make clear in Brussels that while these proposals are dribbling around large sections of our meat processing industry are being severely mauled by heavily subsidised imports from countries such as Denmark? Will he make clear that unless there is speedy action to alter this iniquitous system, Britain will reserve the right to take its own national action?

Mr. Silkin

My hon. Friend has put his finger on an important point. It is not so much the question of a green pound change, for example, which affects processors, because all that does for them is to put up the price of the raw material. They need a recalculation, and I agree that it is vital that we have one.

Mr. Jasper More

Irrespective of any proposals put forward by the Commission, has the right hon. Gentleman worked out how these monetary compensatory amounts should be recalculated, and will he make a statement to the House on what he thinks should be done?

Mr. Silkin

I have on many occasions, and rather boringly, described the pig as a walking cereal, because that is what it is from the point of view of production. I have many times said to the House and, more specifically, to the Council, that in the calculation of MCAs pigs should be regarded in the same way as poultry, namely, as a walking cereal. This has been the French view recently and they have been making it strongly. On the other hand, I must wait to see the Commission's proposals, because if the Commissioner carries out what he has said he will do, there will be a basis for some alleviation.

Mr. Watkinson

Does my right hon. Friend accept that the MCAs are tied to the calculation of the unit of account itself, and will he tell us what prospects there are of untying the unit of account from the snake and bringing it in line with the basket? Is that a possibility?

Mr. Silkin

The trouble with a Question Time of this sort is that the technical language gets a little difficult for outside people to understand, but there is great merit in what my hon. Friend said. Put another way, if the common price level in the Community were tied to the three weakest currencies, it would have the majority of population and majority of area within its scope. At present, it is tied to the strongest currency and to the smallest area in the Community.

Mr. Peyton

Will the right hon. Gentleman remind the Leader of the House that the Scrutiny Committee picked out this difficult and important subject for debate as long ago as November? Time has passed. Will he press the Leader of the House, whose interest in these matters is not as great as it might be, for an early debate on a matter which is doing very great damage to our livestock industry?

Mr. Silkin

I have known my right hon. Friend for many years and I have always assumed, perhaps incorrectly, that he had a greater affection for debates in the Chamber than for debates upstairs. That has semed to be his philosophical view. Therefore, I think that he has taken this matter very much into account, but I shall draw it to his attention, as the right hon. Gentleman has raised the point again.