HC Deb 25 June 1981 vol 7 cc361-2
1. Mr. Knox

asked the Minister of Agriculture, Fisheries and Food what initiatives he intends to take when he assumes the Presidency of European Economic Community Agriculture Ministers.

The Minister of Agriculture, Fisheries and Food (Mr. Peter Walker)

I expect the Council to play its part in examining the ideas for reducing surpluses and containing the costs of the common agricultural policy put forward in the Commission's document on the 30 May mandate. I hope that the Council will examine the problems over State aids to agriculture as well as discussing commodity prospects over a longer time scale than is possible at the annual price fixing.

Mr. Knox

Will my right hon. Friend confirm that in the next six months he will do everything possible to promote that stability of the agriculture industry and that stability of employment in the industry that have been the outstanding features of the CAP in recent years?

Mr. Walker

Yes, Sir. Stability in agriculture is of immense importance. In addition, British agriculture has made a considerable contribution towards improving productivity and good labour relations. Obviously, I should want that to continue.

Mr. Maclennan

If the Minister looks on State aids with a jaundiced eye, does he believe that the Community should have greater responsibility for expenditure in the less-favoured areas, such as hills and uplands?

Mr. Walker

The Commission exercises certain responsibilities in that direction. Obviously, I hope that the positive policies in that sphere will continue to develop. There is a place for State aids, but if they increase to the extent found in certain countries they become the subject of unfair competition.

Sir Timothy Kitson

Will my right hon. Friend tell his colleagues in Europe that many British farmers are sick and tired of the way in which his European colleagues interpret the rules to their advantage? We play according to the rules. Will my right hon. Friend ensure that they play the game as fairly as we do?

Mr. Walker

I shall convey my hon. Friend's views to my European colleagues. I have conveyed such views to a number of my colleagues on several occasions.

Mr. Freud

Will the right hon. Gentleman consider using countervailing charges against the Dutch under article 46 of the Treaty of Rome? Will he bear in mind the plight of tomato growers in general, and, in particular, that of my tomato growers in Whittlesey who use gas-fired appliances to heat their glass-houses? Will the right hon. Gentleman accept that we wish him well in his Presidency?

Mr. Walker

I am grateful to the hon. Gentleman for his concluding remark. I think that he knows that I have considerable sympathy with those tomato growers in his constituency. We are examining several aspects of energy supplies to the British industry. With regard to using countervailing duties specifically against the Dutch, I should point out that they have not yet announced any detailed proposals about their new subsidies. When they do, the Government will examine them in great detail.

Mr. Mason

From what the right hon. Gentleman has said, do I take it that he is not in favour of funding part of the CAP on a national financing basis, as suggested in the latest budget proposals from the EEC?

Mr. Walker

No, Sir. There is a difference in the latest proposals, which were received only this morning. For example, we were in favour of the principle of national funding when we supported the super levy on milk, which in practice would have meant the national financing of future milk surpluses. However, we are against national loans that pervert fair competition between one country and another. Both sides of the House are united about that.