HC Deb 30 January 1978 vol 943 cc29-31
Mr. Peyton (by Private Notice)

asked the Minister of Agriculture, Fisheries and Food if, in view of the unprecedented refusal by three European Community member countries to approve the recommended devaluation of the green pound, he will make a statement as to the Government's intentions.

The Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food (Mr. Gavin Strang)

The right hon. Gentleman is right to say that this refusal is unprecedented. My right hon. Friend the Minister is seeking to clarify the position with the three member countries this afternoon.

Mr. Peyton

I should like to ask the Minister whether even at this early stage he has yet been able to form an opinion whether this is just the Germans and their friends getting a bit of their own back, or alternatively something which is much more serious and which I fear—namely, the reluctance of the European Governments to abandon an increasing share of our market, which they have had presented to them on a plate as a result of the Minister's own policy in refusing to devalue the green pound.

Mr. Strang

I do not accept the right hon. Gentleman's latter comments. I am not in a position to express an opinion on the position of the three member States, but I assure him that my right hon. Friend the Minister is seeking an explanation this afternoon at the Council of Ministers' fisheries meting.

Mr. Peyton

I do not want to ask a long question—[HON. MEMBERS: "Oh."] This is not a matter for a joke. Will the Minister make a further statement to this House tomorrow so that we may be informed of what is going on?

Mr. Strang

I do not think the right hon. Gentleman would want me to commit my right hon. Friend in advance to a statement tomorrow. The right hon. Gentleman has on occasion congratulated my right hon. Friend on the punctilious manner in which he reported to the House on these issues.

Mr. Beith

Does the Minister envisage that it will be possible to make any progress in the fisheries talks while the position is as it is now?

Mr. Strang

Yes. In view of the statement by the German Government that they do not link the green pound issue with the fisheries issue, it will be possible to have constructive discussions on the fisheries issue at today's Council meeting.

Mr. Spearing

Will my hon. Friend confirm that before the debate last Monday the Commission had recommended devaluation of only 3 per cent. and therefore, as the Opposition insisted on a figure of 7½ per cent., the attitude which is now being adopted by certain European countries is not as much of a surprise to Labour Members as it is to Opposition Members?

Mr. Strang

The position is fairly complicated. My hon. Friend is referring to the proposal that is on the table in the context of the price proposals which involved a devaluation of all green rates by around one-seventh. On that Monday the Commission had tabled a proposal for the Council of Ministers for a devaluation of the green pound by about 5 per cent. or a selective and staggered devaluation and a devaluation of the green lira by 6 per cent.

Several Hon. Members

rose—

Mr. Speaker

I shall call four more hon. Members.

Mr. Peter Mills

Will the Minister bear in mind that, although it is important to stand up and fight for what is right for this country, surely the problem at present lies in the Minister's attitude, since he has exhausted the good will of the Council of Ministers—[HON. MEMBERS: "No."]—and has shown that he is anti-Europe? Surely what is needed in this situation is a complete change of attitude.

Mr. Strang

I totally reject the hon. Gentleman's suggestion. My right hon. Friend the Minister is continuing to fight for the interests of this country and of this House of Commons.

Mr. Torney

Would my hon. Friend agree that in the light of the gross interference by the Common Market in the democratic rights of this House on the subject of the green pound, thus adding to many other problems that we face with the Common Market, the time has now come for unilateral action to protect our vital food industries, which the Minister of Agriculture is trying his hardest to do in the face of virulent opposition from the rest of the Common Market and the Opposition?

Mr. Strang

My right hon. Friend is right to be concerned about the jobs of workers in the food processing industry, and the bacon processing industry in particular. He is also right to be deeply offended by the unprecedented move by three member States to oppose this devaluation.

Mr. Biffen

As the decision to arrive at a figure of 7½ per cent. devaluation was a decision of this House, surely this House is entitled to know what is the basis of the German intransigence. Is that intransigence in respect of the negotiations on fisheries, or the general Community agricultural price review that is now in process? If the Minister cannot answer that question this afternoon, will he tell his right hon. Friend the Minister that it is an answer to which the House is entitled in view of its earlier vote?

Mr. Strang

The hon. Gentleman is right to remind the House that the Government are now putting forward a proposal which was agreed by this House. I assure the hon. Gentleman that my right hon. Friend is seeking an explanation of the German position and the position of the other two delegations. He will certainly keep the hon. Gentleman informed.

Mr. Marten

As it is well known to those who take an interest in these matters that the Germans are dragging their feet about revaluing their green "pound", when they get round to it, under pressure no doubt by the Opposition and the Government, shall we be able to block their revaluation of the green "pound"?

Mr. Strang

The position legally is that if a green "pound" or green deutschemark revaluation is proposed by the Commission, it requires only a qualified majority in the Council of Ministers.