HC Deb 08 December 1980 vol 995 cc616-7
14. Mr. Adley

asked the Secretary of State for Energy if he will make a statement on relevant European Economic Community discussions on differential pricing of gas, in the light of the resulting unfair competition.

Mr. David Howell

The European Community is committed to move towards economic pricing. Where there is unfair competition, we are pursuing it, as we are in the case of Dutch horticulture.

Mr. Adley

I recognise that horticulture is not precisely my right hon. Friend's ministerial responsibility, but does he agree that the problems caused by the Dutch concern energy, and not horticulture? Will he therefore seek an immediate meeting with his right hon. Friend the Minister of Agriculture, Fisheries and Food, to see whether a system of grants and loans can be set up to cover the interim period while the court case is being heard, because many of our horticulturists are in severe difficulty? Will he accept that if this is done many people will go out of business through no fault of Her Majesty's Government, or because of anything that is being done in this country, but purely because of the unfair competition that the industry is facing?

Mr. Howell

I recognise the severe difficulties confronting our horticulture industry and that of other countries as a result of the unfair Dutch competition. That is why the European Commission is pressing the Dutch Government and is on the paint of taking legal action if it fails to get satisfaction. That is the right way forward. My hon. Friend has talked with the horticulture industry and is well aware of the problems. Interim or bridging aid for the industry is a matter for my right hon. Friend the Minister of Agriculture, Fisheries and Food.

Mr. Dalyell

Will the right hon. Gentleman accept that "on the point of taking legal action" is an elastic term in Brussels? Does it mean the spring, summer or autumn?

Mr. Howell

It means as soon as possible. In the past, certain cases where State aid has been challenged have been dealt with very quickly indeed. I cannot prophesy how quickly this matter will be dealt with, but the Commission is under considerable pressure from member Governments particularly this Government. I believe that there is a good chance that the matter will be completed urgently.

Mr. Eggar

What discussions have taken place between my right hon. Friend's Department and similar departments in other EEC countries about building a cross-Channel pipeline, which would be one way to equalise gas costs?

Mr. Howell

None, Sir.

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