§ 11. Mr. Hastingsasked the Minister for Agriculture, Fisheries and Food whether he will make a statement on the latest proposals by the Dutch Government to provide a large subsidy to their glasshouse sector.
§ Mr. Peter WalkerI understand that the Dutch Government have agreed recently to make 270 million guilders available to finance energy saving programmes 370 carried out by individual glasshouse enterprises and a further 30 million guilders to fund research into energy-saving techniques. Because they have not yet announced the details of their proposals or introduced any legislation to implement them, I am unable to see whether the proposals comply with fair competition rules within the Community. If they do not comply, I shall take the matter immediately to the Commission.
§ Mr. HastingsIs it not clear that the Dutch Government are determined to dominate this market in Northern Europe by any means, fair or foul? Will my right hon. Friend consider the imposition of countervailing charges under article 46? Will he not agree, in the longer term, that if our glasshouse sector is to survive, it is time for a fundamental reappraisal of energy sources, conversion and perhaps also of location of the industry? Will he pay particular attention to waste heat from nuclear power stations?
§ Mr. WalkerI should like to deal with the latter part of my hon. Friend's question, which is of considerable importance. We are having talks with the National Coal Board to see what can be done in respect of the substantial glasshouse industry in the Yorkshire area. We wish to see whether contracts and perhaps improvements in capital grants can be made to enable coal to be used for the glasshouse industry in the area on an economic and sensible basis.
My hon. Friend will know that some power stations have supplied heating for the glasshouse industry. We are examining a range of other methods. I should say, in fairness to the Dutch Government, that they have recently increased gas prices substantially. These proposals may well compensate for that increase. If that is the case, I believe the action to be wrong. We would have to consider what action can be taken by the Commission or ourselves. Until seeing the detailed proposals, I think my hon. Friend will understand that I cannot take any action.
§ Mr. HefferWill not the right hon. Gentleman agree that one of the great tragedies of Britain's entry into the Common Market is that it has meant that the glasshouse sector is almost eliminated, especially in the Lea valley which, at one time, produced the best tomatoes in the world? Is he aware that Lea valley tomatoes have practically gone out of existence due to our entry into the Common Market? Should we not put the interests of our people first rather than being tied by Common Market competitive rules that operate against the interests of Britain?
§ Mr. WalkerPrices for tomatoes in this market throughout most of last season were substantially above prices the year before. Although there was an early drop in prices this year, prices in the last two weeks have again been well above those of last year. A section of the British tomato growing industry has been doing pretty well during the last two years.
§ Mr. John WellsCan my right hon. Friend give an assurance that our own experiments in heat saving at the Exel nurseries opened two days ago, which should have been opened by a Minister from the Department of Energy—
§ Mr. Nicholas WintertonWhy did that not happen?
§ Mr. WellsBecause he went to a film. Will my right hon. Friend assure the House that this experiment is not in contravention of the EEC regulation? We cannot dig at the Dutch if we are cheating.
§ Mr. WalkerI am sure that there is no contravention. No subsidy is involved. I recently visited my hon. Friend's constituency and met some of the growers. I should like to congratulate the Kent growers on their remarkable success in the marketing of soft fruit so far this year and on the terrific improvement that has taken place in their marketing techniques.
§ Mr. Skinnerrose—
§ Mr. SpeakerOrder. I intervene to defend the hon. Gentleman. He has a right to be heard.
§ Mr. Skinnerrose—
§ Mr. Nicholas WintertonToo long.
§ Mr. SpeakerOrder. The hon. Gentleman is accustomed to giving silence, and to receiving it. Question Time is passing by.
§ Mr. SkinnerWill the Minister explain to what extent the Chicago-Friedman theory operates in respect of the common agricultural policy with specific reference to the glasshouse industry? Who gets most satisfaction from the operation of these market forces? Is it the Minister himself, or is it the Prime Minister?
§ Mr. WalkerHaving heard the question, I understand the hon. Gentleman's reluctance to put it.
§ Mr. SkinnerAnswer it.
§ Mr. WalkerI shall certainly draw the attention of the professor who has been mentioned to the glasshouse industry's problems.
§ Mr. Maxwell-HyslopIs not the damage that our industry, especially the glasshouse industry, so often suffers, due to the fact that the Commission takes so long to act after my right hon. Friend makes a complaint? Is not the correct response, therefore, for my right hon. Friend immediately to put on countervailing duties so that it takes the Commission the same time to deal with complaints against them as it does to take action against the measures which they countervail?
§ Mr. WalkerYes, Sir. I think, however, that it is important for British agriculture and horticulture not to enter a war of countervailing duties, which would cause considerable damage to our trade with Europe as well as in the other direction. If a legal foundation exists for them and it is proper to use them as an aspect of our legal rights, I would not hesitate to do so. I shall certainly not use such rights irresponsibly.
Mr. Mark HughesIf the survival of not only the tomato section of our glasshouse industry but the carnation and lettuce sections and all the others are to be put at risk by the action of our competitors and confreres in Europe, surely the Government must give themselves the power to take the necessary countervailing action.
§ Mr. WalkerIt is because the Government took the attitude that they would not allow the industry to disappear because of unfair competition that they recently 372 announced the maximum possible aid for horticulture. The industry knows that it has the Government's support and that it will continue to have it.