HC Deb 14 December 1978 vol 960 cc886-7
3. Mr. Giles Shaw

asked the Minister of Agriculture, Fisheries and Food it he has considered whether the export of processed food products from the Community should be given comparable support through the mechanisms of the common agricultural policy and otherwise as is given to the export of primary commodities ; and what is his policy on this matter.

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

Exports of processed food products are already given comparable support. Restitutions are paid to offset the disadvantage to manufacturers of buying the raw materials above world prices. The Government's policy is to seek reductions in EEC prices in real terms and, subject to this, to continue to treat exports of primary and processed products on a broadly comparable basis.

Mr. Shaw

I thank the right hon. Gentleman for that reply. May I ask him whether he welcomes recent initiatives which the food industry has taken to try to develop new thinking on this issue? Does he not recognise that the effect of fluctuating MCAs must be to depress the long-term marketing strategies of food exporting companies? Does he not also recognise that some degree of stability and greater comparability between the producers of primary and processed products could probably lead to substantial increases in employment in the food industry and fewer accumulations of surpluses?

Mr. Silkin

These are all fair points to make. In return, perhaps the hon. Gentleman will agree that one beneficial result of the work of the past few months —I believe that the effective date was 25th September—was the across the board reduction of 10 per cent. on the MCAs. I have always thought that it is an absurd way of dealing with things, that the basis of the MCAs—which I believe should not exist on exported processed goods anyway—should be on a notional recipe rather than the actual recipe.

Mr. Hardy

Does my right hon. Friend recognise that some of the food manufacturers have a continuing anxiety about obtaining adequate supplies of beef for manufacturing purposes? Can he say whether he is able to take an optimistic view of future, continued supplies?

Mr. Silkin

I always try to take an optimistic view of the future. I can only say that we shall continue to fight for a greater amount of manufacturing beef to be allowed into the Community. We are used to this and it is useful to our manufacturers. We shall continue to fight for this for as long as we can. Although I cannot claim that progress has been as good as I would like, I can say that we shall not relent in our efforts.