HC Deb 18 February 1980 vol 979 cc15-6
12. Mr. Geraint Howells

asked the Secretary of State for Wales if he will make a statement on his plans to reform the common agricultural policy; and if he will make a statement.

Mr. Nicholas Edwards

The common agricultural policy is in need of urgent and permanent reform and the Government will have that fact very much in mind during the price fixing negotiations now being embarked upon.

Mr. Howells

I am grateful to the Minister for his reply. Is he in favour of deficiency payments for the intervention system? Does he favour selling our butter to the Russians at 30p a pound while charging the elderly in this country nearly £1 a pound? If he believes that Welsh agriculture is to survive and compete on equal terms with its counterpart in Europe, does he believe that the green pound and the MCAs should be abolished so that we may compete in that market?

Mr. Edwards

We have made it perfectly clear that we are opposed to the sale of cheap butter to Russia and will do our best to prevent it. My right hon. Friend has taken a strong, firm line there. With regard to MCAs, the Government have implemented three green pound devaluations since coming into office, and that, combined with the strength of the pound, means that the MCA gap has largely been eliminated.

Mr. Hooson

Will my right hon. friend ensure that British payments to the Community under the CAP are conditional upon French adherence to the Treaty of Rome in respect of sheep and lamb imports?

Mr. Edwards

My hon. Friend well knows that we have been pressing the Commission very hard to take action against the illegal acts of the French Government on lamb imports. We shall continue to press the matter and to press the Commission for action.

Mr. Denzil Davies

Will the Secretary of State make it clear to the Minister of Agriculture, Fisheries and Food that any price increases resulting from the price fixing negotiations will merely mean an increase in our budgetary contribution? Will the Government therefore veto all price increases in order to keep our contribution down to the existing £1,000 million?

Mr. Edwards

We are totally opposed to price increases which will have the effect of increasing the present surpluses, and we shall take a strong line on that. But we must also be opposed to measures which are discriminatory against our farmers, and which seek merely to penalise our farmers but not those elsewhere in Europe.

Sir Raymond Gower

Does my right hon. Friend recall that a few years ago butter was sold through a special concession to elderly persons? Does he realise that that was a better method of dealing with the surplus?

Mr. Edwards

I note that. This matter is not entirely within the hands of the Government, but my right hon. Friend has taken a strong line in the Council of Ministers on this issue and will continue to do so.