HC Deb 08 February 1979 vol 962 cc534-5
2. Mr. Newens

asked the Minister of Agriculture, Fisheries and Food if he will make a statement on the progress so far made towards the equalisation of fuel costs to glasshouse growers in different EEC countries.

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

As I told my hon. Friend on 16 November 1978, the cost of oil, which is the fuel predominantly used by British growers, does not differ greatly here from that in other EEC countries.

Mr. Newens

Is my hon. Friend aware that I cannot accept this? According to my figures, the cost of gas to Dutch growers is approximately three-quarters the price of the equivalent amount of oil, taking 24p per gallon for heavy oil as approximately the current price. As Shell has permission to impose an increase of 1½p per gallon, which will probably be followed by the other oil companies, will not this increase the existing disparity and disadvantage of an efficient British industry compared with its European competitors? Does this not again illustrate how British horticulture has done badly out of the EEC?

Mr. Strang

I understand my hon. Friend's concern about energy costs, particularly as he is a resolute champion of the interests of those who work in horticulture in his constituency. But in my answer I was referring to oil. Gas is relatively cheap in Holland, but that is for geographical and geological reasons. The gas is onshore and the glasshouses are reasonably near these fields.

Mr. Wiggin

Is it not true that the Dutch have a favourable arrangement with the fuel authorities in Holland and that it has nothing to do with the proximity of the fuel source to the glasshouses? We have growers who could be just as close to natural gas sources, but the Dutch Government treat the matter differently.

Mr. Strang

The production costs of gas in Holland are much lower than in the United Kingdom. The hon. Gentleman must face the fact that we have no evidence—we have looked at this closely—of gas being supplied to Dutch horticultural producers below the cost of production.