§ 12. Mr. John Townendasked the Minister of Agriculture, Fisheries and Food if he will make a statement on the present state of negotiations between the European Commission and the Dutch Government on the subsidised price of gas to Dutch growers.
§ 14. Miss Maynardasked the Minister of Agriculture, Fisheries and Food if he will make a statement on the effects of the extension of aid to the glasshouse industry on the competitive position of the industry against other European Economic Community glasshouse industries.
§ Mr. Peter WalkerThe European Commission has not formally stated the position but is now understood to be demanding an assurance from the Netherlands Government that the preferential gas prices to Dutch growers will be eliminated by 1 October 1982, under threat of an early reference to the European Court if the assurance is not received by 1 January 1982. We are maintaining our pressure on both parties, and in the meantime I announced on 23 November an aid of up to £4 million from national funds to safeguard the competetive position of United Kingdom glasshouse growers.
§ Mr. TownendDespite the aid that my right hon. Friend has just mentioned for the glasshouse industry, which is much welcomed, does he agree that until we have a permanent solution to the problem of subsidised Dutch glass, the industry will continue to face severe problems? Therefore, will he consider bringing in generous grants for the conversion of oil burners to coal?
§ Mr. WalkerI agree with my hon. Friend on his first point and that is why I hope that we shall be successful in eliminating this difference. I am interested in finding ways of encouraging conversion to coal, particularly in an area like the constituency of my hon. Friend, with its proximity to substantial coal supplies from places such as the Selby coalfield.
§ Miss MaynardDoes the Secretary of State not recognise that the provision of a subsidy, welcome though it is, will not be sufficient to put our glasshouse growers on an equal footing with their Dutch competitors? Does he accept that our industry and our workers are under threat? Will he therefore consider taking further action to increase the subsidy? Will he consider tariffs or a ban on imports?
§ Mr. WalkerI would not consider a ban on imports, for the simple reason that any such ban would immediately prove to be one that we could not uphold in the courts. The aid has been warmly welcomed by the horticulture industry and it will be of help during this period. If we can reach conformity in October 1982, I hope that the problems will have ended.
§ Mr. MaclennanDoes the Secretary of State really believe that the £4 million, which is welcomed, will be sufficient to bridge the gap before the Dutch respond to the Community's initiative?
§ Mr. WalkerWe cannot simply make a straight comparison between the Dutch advantage and ours. With regard to the domestic market, we have advantages in lower costs of transportation, movement and proximity to the market place. We have applied the maximum aid that is allowable under the rules of the Commission.
§ Mr. SpeakerMr. John Wells.
§ Mr. John WellsI am content.
§ Sir John Biggs-DavisonI am content with the efforts that my right hon. Friend has made in view of all the difficulties that he encounters with the Community, but is he satisfied that, during the period between now and October 1982, my constituents in the industry in the Lea Valley will be competing on equal terms with the Dutch? If not, will he consider what more can be done to help?
§ Mr. WalkerYes, we are anxious to do all that we can in a number of spheres to help in this matter. For example, the increased activities of the central council in marketing have helped our horticulture industry. We shall examine all such methods. I can assure my hon. Friend that we are giving the maximum aid possible under the rules of the Commission.
§ Mr. NewensWill the Minister confirm that the present cost advantage to the Dutch is estimated to be about £10,000 per acre? Does he agree that the subsidy that he has granted will by no means put the British industry on the same footing, taking into account transport and all other costs? That being so, how are our people supposed to survive in competition with produce put on the British market at below the cost of production here?
§ Mr. WalkerI well recognise the disadvantages that our growers face, and which they faced for a number of years before I became the Minister. The only difference is that they are now receiving some help.
§ Mr. NelsonMay I assure my right hon. Friend that he will receive the full support of growers in my area for the strong stand that he has taken and will continue to take with the Commission? Does he agree that it ill becomes Labour Members, who phased out the fuel subsidy, to criticise a Government who have introduced real and welcome practical help for our growers at a time when it is most needed?
§ Mr. WalkerI am grateful to my hon. Friend.
Mr. Mark HughesMay I remind the right hon. Gentleman that it was Labour Ministers who introduced the glasshouse subsidy? They did not phase it out. If the Minister is not prepared to impose a ban on economic grounds, will he maintain vigilance for a ban on plant health grounds if there is evidence of a risk in that respect? Does he accept that the subsidy, however welcome, still leaves our glasshouse industry at a considerable disadvantage?
§ Mr. WalkerI guarantee that we shall maintain and, indeed, are maintaining, great vigilance on health grounds. We recently made it clear to the Dutch Minister that if, in the very close inspections taking place, we find any sign of health risks in this area we shall take immediate action.