HC Deb 18 May 1978 vol 950 cc760-2
6. Mr. Michael Latham

asked the Minister of Agriculture, Fisheries and Food when he will next meet the Council of Agriculture Ministers of the EEC.

Mr. John Silkin

The Council will next meet on 19th and 20th June.

Mr. Latham

Will the Minister discuss with his colleagues the level of FEOGA grants? Is it not necessary to get these useful grants reviewed, in view of the decision by the British Treasury that capital allowances in Britain should be reduced by an identical amount?

Mr. Silkin

The question of FEOGA grants is almost certain to come up at the June meeting. If the hon. Gentleman has a specific point that he wants to make—it sounds to me as though he has—I shall be grateful if he will write to me about it.

Mr. Raphael Tuck

When my right hon. Friend meets his EEC counterparts, will he make clear to them his unalterable opposition to the importation of the sheepmeat regime in the EEC? Does he realise that if he does he will have the unqualified support of Mr. Muldoon, the Prime Minister of New Zealand, who has expressed grave misgivings about this matter? Does he also realise that most hon. Members would support his action in helping the British housewife and the New Zealander?

Mr. Silkin

The sheepmeat regime is still, to my mind, rather premature. We have not yet got down to discussing it. My hon. Friend is right in saying that it appeared in the price negotiations, but it was not discussed. The real point is that, whether we have a regime or not, three essential factors must be maintained. First, we must protect New Zealand imports into this country—

Mr. Raphael Tuck

Hear, hear.

Mr. Silkin

—secondly we must safeguard the interests of our own producers. Thirdly, we must safeguard the interests of our consumers.

We have a low-priced reasonably well paid sheepmeat trade in this country, and we are dependent on and look for many other reasons to New Zealand for those imports. Therefore, whether we have a regime or not, we must protect those three factors.

Mr. Jopling

When the Minister next attends the meeting of the Council will he draw attention to the unprecendented confusion and uncertainty in the potato industry? Will he further draw attention to the fact that growers in this country, for the first time for a long time, have been planting potatoes having no idea of what the price will be? Very few contracts have been signed and, above all, there is no idea what is to be the future of the Potato Marketing Board. Will the Minister treat this as a matter of extreme urgency?

Mr. Silkin

I agree with the hon. Gentleman. This is a very difficult matter, especially for growers. We try to give what guidance we can, but the position is uncertain. The sooner we can settle the matter to the advantage of our potato industry, the better.

Mr. Heffer

Is my right hon. Friend aware that on the matter of sheepmeat, it is vital to protect our interests and particularly the interests of ports such as Liverpool, which will be most badly affected by the drying up of the New Zealand trade? Ships would be put out of commission, dockers put out of work and shipping workers of all kinds affected, apart from the effect on the imports of sheepmeat that we require.

Mr. Silkin

My hon. Friend is right. These are additional reasons, together with a natural kinship and affection for New Zealand and the interests of our own consumers, why we have to watch the matter, and I intend to do so.

Mr. Wiggin

Although the Minister seems pleased with the results of the negotiations in Brussels last week, is it not a fact that the three products that received the largest amount of price increase, namely, beef, sugar and milk, are also the three products in greatest surplus in Europe? Will he say whether, at the next meeting of Ministers, the Government will produce constructive plans for reducing surpluses and for containing the structural difficulties without necessarily always reducing farmers' prices?

Mr. Silkin

Milk, sugar and beef—in that order—are the commodities in greatest structural surplus in Europe, though the hon. Gentleman has forgotten cereals, perhaps intentionally. There was a very small increase in the price of cereals. If the hon. Gentleman considers the matter, he will realise that the increases in the support prices are not only very small but reflect a drop in real prices, to the extent that I have had some criticism from certain farming interests on the ground that I did not sufficiently increase the support prices. I believe that the House and the country were well satisfied with what is the lowest increase since we joined the Community.