Common Agricultural Policy

HC Deb 04 December 1980 vol 995 cc416-7

7. Mr. Ioan Evans

asked the Minister of Agriculture, Fisheries and Food what action is proposed to bring about a rapid and fundamental reform of the common agricultural policy.

Mr. Peter Walker

Fundamental reform of the common agricultural policy requires production to be brought progressively into line with demand by measures which include the restraint on prices we have succeeded in obtaining in the past two price fixings.

Mr. Evans

In view of the fact that 70 per cent. of the income of the Common Market is taken up in the common agricultural policy and the fact that Greece is joining the EEC next month, to be followed by Spain and Portugal, is there not a need for urgent consideration of the situation and for fundamental reform? Did we not have a better system, with deficiency payments and guaranteed prices, before we entered the Common Market? If we do not get satisfaction quickly, will the Minister tell Europe that we shall quit rather than stay with the present system, which is so disadvantageous to this country?

Mr. Walker

No, Sir. I believe that, as a result of the adjustments in the budget that have taken place, it would be disastrous for British agriculture, as well as for Europe in general, to endeavour to break up that system. Throughout their period of responsibility, the previous Government took the same view. With regard to the surpluses, I hope that during 1981 we shall be able to agree within the Community ways in which we shall eradicate the cost of surpluses, which totally dominate the agricultural budget.

Mr. Colin Shepherd

Is it not incumbent on those who generally glibly call for reform of the common agricultural policy not only to put forward clearly what they want to see but also to pay specific attention to how the transition is to be achieved without destroying the industries in the meantime?

Mr. Walker

Yes, Sir, and when we look at the nature of potential world dangers the security of food supplies throughout Europe is of paramount importance.

Mr. Jay

Does the Minister believe that the CAP needs to be reformed?

Mr. Walker

Yes, Sir. Since the Government have been in office I have constantly endeavoured, by having a price system far tougher than my predecessors, to start to eradicate the need for surpluses. It is vital that the Community reaches an agreement whereby the major surplus problems—the main one being the dairy surplus—are dealt with systematically in a way that does not cause grave economic or social disruption. I am sure that the Labour Party, with its traditional views, would not wish that to happen.

Mr. Mellor

Does my right hon. Friend agree that even those of us who are pro-Common Market, as I am, have to acknowledge that the accession of three agriculture-based economies is bound to make the process of reforming the CAP that much more difficult? What account have the Government taken of that?

Mr. Walker

The renegotiation gives us, rather than depriving us of anything, an opportunity to try to eradicate some of the problems. The manner in which we consider the Mediterranean-type products that are of concern to these three countries will obviously be dominated by the now considerable restrictions on public European expenditure in this sphere.

Mr. Strang

Is the Minister aware that many of us, on reading the press reports of his notorious Brussels after-dinner speech, assumed that the eulogy to the CAP was a response to a somewhat unrestrained personal contribution to tackling the problem of the EEC wine lake? Unfortunately, we have the Ministry's official press release incorporating his remarks. Will he tell us now that there has been no change in the Government's policy towards reform of the CAP, and will he make it clear that this week's press reports that the Government are contemplating a sell out over future access of New Zealand butter are unfounded?

Mr. Walker

I say with deep regret, in response to the hon. Gentleman's first point, that no dinner was involved. The speech started with the words: Since May 1979 the British Government has been endeavouring to bring about improvements in the Common Agricultural Policy, a policy that has resulted in expensive and unwanted surpluses, a policy that has increasingly dominated the European budget and which has placed an unfair cost on the British taxpayer. My position was clearly stated in that first paragraph, and it remains my position.

I am sure that both sides of the House agree, as do seven other countries and the Commission, that it is vital to give New Zealand long-term guarantees about the access of sufficient quantities of butter.

Several Hon. Members

rose—

Mr. Speaker

Order. We return to this matter on question 9.