HC Deb 18 May 1978 vol 950 cc762-5
7. Mr. Hugh Jenkins

asked the Minister of Agriculture, Fisheries and Food what progress he is making on the renegotiation of the Common Agricultural Policy.

Mr. John Silkin

I refer my hon. Friend to my statement to the House on 12th May describing the outcome of the meetings of the Council of Ministers during last week.

Mr. Jenkins

That was a widely welcomed statement. As the Minister said at the time, it marked an improvement in the CAP. He has just emphasised that. Is it not still the case that the EEC prices for some of the commodities, to some of which he has referred, are several hundred per cent. above world prices? Therefore, with the growth of food mountains, not only on the Continent but in this country, we have passed beyond the stage at which there can be an improvement. Has not the time come for the Minister to denounce root and branch the whole idea of the common agricultural policy and prepare to get out?

Mr. Silkin

The time has come—I have been working on this basis—so to change the CAP as to get away from the difficulties to which my hon. Friend has referred. Primary amongst these difficulties are the structural surpluses, which are a disgrace to the Community. One best tackles the problem at the price end. However, to expect one to be able to get an answer in one year, let alone in five weeks, is asking too much, even from my hon. Friend. Give us time and we shall do it.

Mr. Welsh

As part of the Minister's renegotiation of the CAP, will he consider the plight of the raspberry and soft fruit industry and the problem of highly subsidised East European imports into the EEC? Will he reassure us that he is aware of the importance of these industries to Scotland and that he will closely watch the situation?

Mr. Silkin

If I was not previously aware of the importance of the industries mentioned by the hon. Gentleman, I am now. I shall keep the matter well in mind and I shall be glad of any information that the hon. Gentleman can give me.

Mr. Hoyle

The question that I want to put in congratulating my right hon. Friend for defending the interests of the British housewife and protecting the daily pinta is this: does he agree that it is time that the other Common Market Agriculture Ministers realised that as food prices in the EEC are so much higher than world prices the present policy cannot continue?

Mr. Silkin

It will take some time fully to convince them of that, if only because I am the only Minister at the Council of Agriculture Ministers who is a Food Minister as well. However, I believe that the other Agriculture Ministers are aware that there is some degree of British determination to get prices to a proper level, and that this degree of determination is something new and refreshing.

Mr. Marten

Is the Minister aware that successive Ministers of Agriculture have been saying just what he said—"I have only been here a short time and have not had time to do much about it"? However, the desire to restructure the CAP has been prevalent for 11 years. Is not the truth of the matter that there are so many vested interests on the Continent that the policy will never be changed?

Mr. Silkin

It is being changed, but not as dramatically or as quickly as I wish. Reductions in the price level from 9.6 per cent. to 7.7 per cent. and to 3.9 per cent. last year—which was the lowest until then—and now down to 2.25 per cent., illustrate a change. There is at least a reprieve of a number of British institutions, such as the Milk Marketing Board. We will, I hope, be able to preserve a certain amount of importations from third countries. However, that is not enough. We have to do a great deal more, and I am aware of it.

Dr. McDonald

When considering changes in the CAP, will my right hon. Friend bear in mind that any reduction in imports of sheepmeat from New Zealand will have serious effects on Tilbury, which contains the largest refrigerator/cold storage facility in the world, designed specifically for trade with New Zealand?

Mr. Silkin

I will bear that in mind and bear in mind the effects on New Zealand, which I believe to be very important and near to our hearts.

Mr. Peyton

Now that the Minister has got over his self-congratulatory phase, will he comment on statements made by Mr. Roy Jenkins and Mr. Gundelach that neither the Milk Marketing Boards nor the daily pinta were ever in the slightest danger during current negotiations?

Mr. Silkin

I prefer self-congratulation to sour grapes. There is all the difference in the world between saying that we accept the principle of Milk Marketing Boards—for about 15 months I have told the House that the Commissioners said that—and introducing conditions which make it impossible for the boards to continue. That is no different, in effect, from saying Thou shalt not kill; but need'st not strive Officiously to keep alive". The right hon. Gentleman is apparently advocating, with the Commissioner concerned, that we should have had a reprieve until 1983. I was not satisfied with that. I wanted a permanent reprieve.