HC Deb 17 January 1980 vol 976 cc1848-51
4. Mr. Parry

asked the Minister of Agriculture, Fisheries and Food if he will make a statement on the present situation of African, Caribbean and Pacific sugar imports.

Mr. Buchanan-Smith

The guarantees on price and access given by the Community to ACP sugar producers are of indefinite duration and are separate from the current renegotiation of the Community's own internal sugar regime.

Mr. Parry

With regard to the present 1.3 million tonnes imported from ACP countries, does not the Minister agree that, if this figure is not maintained, we may see further closures in the sugar cane port refineries, putting 1,700 jobs at risk at the Liverpool Tate and Lyle refinery? Will the Minister do everything in his power to ensure that this does not happen?

Mr. Buchanan-Smith

I wholly appreciate what the hon. Gentleman says, having the day before yesterday met trade union representatives from the cane sugar refineries throughout the United Kingdom. I repeat that the commitment of the 1.3 million tonnes is a commitment of the European Economic Community, and it is of indefinite duration.

Mr. Mason

I am sure that the Minister will agree that the current cost of the sugar regime of£400 million means that it is in need of a serious re-think. The dumping that has been taking place in the Third world has had devastating effects on those countries which are dependent on the export of sugar for their survival. But, in spite of that, I hope that when the Minister is negotiating during the course of the next two or three weeks, he will bear in mind that we must have no conflict in our own country between the beet producers and the sugar cane processors. All feel that they are in this conflict and want to stand together.

Secondly, I hope that the Minister will bear in mind—

Mr. Speaker

Order. The right hon. Gentleman has been making a statement of his opinions. Will he ask a question?

Mr. Mason

During the course of the negotiations, bearing in mind the interests of both the beet producers and the sugar cane processors, I hope that the Minister will be able to assure the House that he will make no efforts to interfere with the 24 per cent. public interest holding in the British Sugar Corporation.

Mr. Buchanan-Smith

We believe that there is room within the United Kingdom to accommodate the commitments of the EEC under the Loméconvention and also to see an improvement in the proposals made by the Commission in relation to the sugar beet industry. We believe that there is scope for it, and I give the right hon. Gentleman an absolute assurance that we shall be working towards that end.

5. Mr. Buchan

asked the Minister of Agriculture, Fisheries and Food if he is satisfied with the present working of the European Economic Community sugar regime.

Mr. Buchanan-Smith

No, Sir.

Mr. Buchan

Is not the cost of£400 million that we spend on maintaining a ridiculous 3 million tonnes surplus really at the cost of our overseas cane producers, many of whom are British Commonwealth members? Does not this pose a threat to the future of our cane sugar refineries because of the French pressure now in relation to Lomé?

Will the Minister give us a firm guarantee that there will be no cutback in employment in the cane sugar refineries, and no cutback in our relationships with Lomé.

Mr. Buchanan-Smith

The hon. Gentleman must have misheard my reply. I said that I was not satisfied with the current working of the regime. I repeat the assurances that I gave earlier. The commitments under the Loméconvention are not only our commitments; they are the commitments of the European Economic Community. I can do no more than repeat the assurances that I gave earlier.

Mr. Douglas Hogg

When the Minister comes to negotiate the new sugar regime, will he bear in mind that during the last two or three years many farmers and processors have invested substantial sums of money in lifting and processing equipment, and that a substantial reduction in the present sugar quotas will inevitably cause them very substantial financial hardship?

Mr. Buchanan-Smith

I acknowledge what my hon. Friend says, and reiterate that we believe that there is room for a proper cane sugar refining industry in this country, and also for beet processing and beet producing.

Mr. Mason

Will the hon. Gentleman answer the last question I have posed, and give the House an assurance that during the course of this turmoil on sugar the Government have no intention of selling off the 24 per cent. public interest holding in the British Sugar Corporation?

Mr. Buchanan-Smith

As the right hon. Gentleman knows, the question of Government holdings in bodies such as the British Sugar Corporation is one that is under consideration.

Mr. Freud

Will the Minister bear in mind that sugar beet is a traditional East Anglian crop, and that there is no way that my constituency farmers will go on planting beet unless they have confidence in the commercial viability of that crop? Will he therefore make an early statement assuring my constituency farmers of the wisdom of continuing to plant beet?

Mr. Buchanan-Smith

I have already made many statements this afternoon giving that precise assurance.

Mr. John MacKay

Does my hon. Friend's dissatisfaction extend to the possible non-availability of sugar beet pulp as a food substance for the hill farmer?

Mr. Buchanan-Smith

Sugar beet production in this country is important not only as a break crop, as was mentioned earlier, but also in relation to its by-products.

Mr. Allan Roberts

Is the Minister aware that unless the proposed cuts in the beet sugar quotas are implemented—and perhaps even more cuts are needed—there will be further closures and redundancies in the sugar cane refining industry on Merseyside, and that this will be bad not only for our Commonwealth suppliers of sugar cane but for the people of Merseyside, leading to more unemployment?

Mr. Buchanan-Smith

I am totally conscious of the problems in this connection, but, as I said earlier, we believe that within Europe there is need to cut back production of sugar from beet. However, we believe that that must be done in a way that is fair to our producers and to our industry.