HC Deb 04 December 1980 vol 995 cc414-6
6. Mr. Hicks

asked the Minister of Agriculture, Fisheries and Food if he is satisfied with the progress being made within the European Commission towards equivalence of energy costs to the glasshouse industry.

13. Mr. John Townend

asked the Minister of Agriculture, Fisheries and Food if he will make a statement on the negotiations that have been taking place with the Dutch Government regarding the price of gas to the Dutch horticulture industry.

17. Mr. Newens

asked the Minister of Agriculture, Fisheries and Food if he is satisfied that the British glasshouse industry no longer faces unfair competition on a significant scale from any of its competitors in the European Economic Community; and if he will make a statement.

Mr. Peter Walker

The European Commission has now completed its investigations and reported that the highly advantageous price at which natural gas is supplied to the glasshouse industry in Holland is influenced by the Dutch Government, is a distortion of competition and is contrary to the Rome Treaty. We share that view and have urged rapid completion of legal action already started by the Commission under article 93(2) of the Treaty.

Mr. Hicks

I thank my right hon. Friend for that information. Is he not concerned that there is increasing evidence that genuinely efficient glasshouse production units are facing increasing difficulties as a result of our own high-cost energy policy? Cannot some adaptations be made within the horticulture budget to assist those producers?

Mr. Walker

There is an advantage to Holland in this sphere, which is obviously unfair to our horticulturists. That is why I hope that this legal case will be dealt with swiftly. Over the last year we have carefully monitored the results, and I am glad to say that tolerably good prices have been obtained on the British market for tomatoes. But the biggest handicap is over the production of flowers, due to imports from Holland, obviously on a subsidised and favourable basis. The best way of solving the problem is to eradicate unfair competition.

Mr. Townend

Is my right hon. Friend aware of the desperate situation of some East Yorkshire growers, some of whom will be out of business within 12 months if the problem is not resolved quickly? While the wheels of the EEC are grinding ever more slowly, will he consider, as an interim measure, the imposition of some non-tariff barriers such as slowing down Customs entry into this country and a keener application of the transport regulations?

Mr. Walker

I spoke to horticulturists in East Yorkshire not long ago, and I understand their problem. That is why I am anxious to get a speedy solution. After I drew the matter to the attention of the Commission and pressed it in the Council of Ministers, swift inquiries were made and swift legal action was taken. I hope that the problem ends quickly. However, I am unwilling to consider illegal actions in the interim period.

Mr. Stephen Ross

Is the Minister aware that the biggest glasshouse grower in my constituency has now gone out of business? His business is up for sale, so it is now too late to help him. Will the Minister consider other measures to alleviate the situation, particularly the setting up of co-operatives, and other measures to assist the marketing of British goods?

Mr. Walker

Yes, I shall certainly do that. Only this week I have had meetings with the officers of the glasshouse committee of the NFU to discuss ways in which we may be able to help.

Mr. Nelson

Does my right hon. Friend accept that many glasshouse growers appreciate the strong line that he and his hon. Friend have taken in the Council of Ministers and in other areas, and particularly with the Land Settlement Association? Will he nevertheless accept that many of the growers are fearful about the time scale of action under section 93 and that the problem for many, particularly the early tomato growers, is the more immediate one of making an adequate return? Will he make an effort and use every means at his disposal to speed up the process of acceptance of this just cause by the Dutch Government?

Mr. Walker

We shall do everything that we can to speed up the process and, once a decision has been taken, to see that it is enforced speedily.

As for the general question, probably due to better marketing, at least the prices for English tomatoes this year were way above those of last year throughout most of the season. Nevertheless, that was greatly needed to meet the enormous increase in input cost.

Mr. Dalyell

Is the Minister aware that "rapid completion of legal action", "quick endings", and "swiftly dealt with" are very elastic terms in Brussels? Are we talking about spring, summer or autumn of next year? Is the Minister aware that for the glasshouse industry in central Scotland this is desperately urgent?

Mr. Walker

I recognise the urgency. Obviously, there have been cases where actions of that sort have taken place quickly. I naturally hope that the completion will take place before the spring.