Pigmeat (Monetary Compensatory Amounts)

HC Deb 20 April 1978 vol 948 cc659-61

11. Mr. Boscawen

asked the Minister of Agriculture, Fisheries and Food what is the current state of negotiations with regard to the recalculation of pig-meat monetary compensatory amounts.

14. Mr. Ridley

asked the Minister of Agriculture, Fisheries and Food what progress he has made in persuading the Council of Ministers to agree to changes in the manner in which pigmeat monetary compensatory amounts are calculated.

Mr. John Silkin

The Commission has promised to make proposals for revising the calculation of pigmeat MCAs in time for them to be considered in the context of the price package.

Mr. Boscawen

Does the Secretary of State agree that we have been hearing for three years the same tune, that the MCAs are to be recalculated? Now that we are seeing the £ sterling plummeting again, does it not underline the wisdom of the Opposition's case for revaluing the green pound as being the only way, in the long term, that we shall save the pig industry?

Mr. Silkin

It has absolutely nothing to do with the green pound as it is at the moment. Had there been, as the Tory Party suggested, a simultaneous devaluation of the green pound in pig-meat and in cereals the result would have been disastrous. The real question is that of recalculating the MCAs. I suggest that the hon. Gentleman should be very careful about the Opposition's views on the green pound. Parity—which the Conservative Party is talking about—over the next two or three years means an increase of 6p to 6½p in the pound in the shopping basket.

Mr. Ridley

Does the right hon. Gentleman realise that the subsidy on Danish bacon sides imported into this country has increased from £192 per tonne, just after the 5 per cent. devaluation of the green pound, to £280 now? Is this classical piece of unfair competition the result of the Government's agricultural policy or its economic policy?

Mr. Silkin

It is the result of the need for a recalculation of the MCAs. Perhaps the hon. Gentleman did not listen. If one had adopted the Opposition's view at that time the cereal price would also have increased.

Mr. John Ellis

Will my right hon. Friend cease using the Dispatch Box to try to educate Opposition Members? Will he now conduct a seminar for them, so that they can get it clear in their minds that it is a question not just of the green pound but of the monetary compensatory amounts? Will he conduct the long educative meetings elsewhere than in the Chamber, so that we can have more sensible questions asked?

Mr. Peyton

At the next meeting of the Council, will the right hon. Gentleman combine with the French and Italian Ministers to bring pressure upon the coalition of the German and Danish Ministers in this matter? For far too long reasonable arguments have been stalled.

Mr. Silkin

But progress has been made, because the Commission, in answer to us—it is true that the French and Italians are now backing us on this, which I welcome—has promised to bring forward its proposals. I share with the right hon. Gentleman the view that it is time that this matter was brought to a conclusion.