HC Deb 19 February 1981 vol 999 cc442-3
11. Mr. Moate

asked the Minister of Agriculture, Fisheries and Food what steps he is taking to promote fundamental changes in the agricultural policies of the European Economic Community.

Mr. Peter Walker

I am continuing to press for action on prices and such other measures of reform of the common agricultural policy as are appropriate and negotiable.

Mr. Moate

Does my right hon. Friend agree that the phrase "fundamental reform" has been around for many years, and we have yet to see any results? Are the Government really determined, on this occasion, to secure a fundamental change in the CAP or a replacement of the current policy? Is it not right for him to tell the House of his ideas about how the CAP should be reformed, perhaps in the form of a Green Paper?

Mr. Walker

As my hon. Friend knows, during the past year there have been substantial reductions in the number of what used to be referred to as mountains and lakes. There has been a better administration of the disposal policy. The new proposal for a super levy to stop the increase in milk surpluses is radical and important. Those matters will be fully discussed, as is traditional, in a major debate prior to the negotiations on the CAP.

Mr. Strang

Will the Minister say in what year the Labour Government agreed to an average price increase of 7.5 per cent? His reply to my earlier question on the EEC prices package may have been somewhat misleading. Will he address himself to the real issue, namely the cost to the British taxpayer of the proposed prices package? Is it a personal insult to the Prime Minister, or has he decided that the British taxpayers will make a contribution to the French President's election campaign?

Mr. Walker

I shall be delighted to table an official reply showing the list of price increases agreed by the Labour Government. I hope that the hon. Gentleman does not find that too embarrassing. During the past three years, the average increase of food prices under the CAP was 2.7 per cent. per year—way below the input costs and way below the rate of inflation in any country in Europe.

Mr. Marlow

As our friends on the Continent are providing heavy subsidies for their agriculture—both France and Germany through interest-reduced loans and subsidies—will my right hon. Friend consider, as a radical improvement in the CAP, that we should at once revalue the green pound by the full amount, and agree that at the same time a small proportion of that total amount of cost saving to the British consumer should be given as some subsidy to our farmers in view of their recent reduction in income?

Mr. Walker

I reject my hon. Friend's suggestion. Farm incomes in real terms have reduced by 24 per cent. during the past year. His suggestion would mean another massive reduction in farm incomes in Britain. I suggest that my hon. Friend carefully studies the reason why countries such as Germany have always struggled to maintain their positive MCAs. Germany did so because it considered it to be of benefit to the German economy.