HC Deb 19 March 1981 vol 1 cc415-6
6. Mr. Newens

asked the Minister of Agriculture, Fisheries and Food if he has yet made any agreement with other members of the European Economic Community to equalise the cost of energy used by glasshouse growers in different member countries; and, if not, if he will give special assistance to British producers.

Mr. Wiggin

The European Community Commission has repeatedly challenged the Dutch over their gas prices in the glasshouse sector and called on them to cease unfair practices. We are expecting the Dutch reply to the Commission by the end of this month. I cannot anticipate their response.

Mr. Newens

It is just not good enough to continue to wait. Is the Minister aware of the crippling disadvantage at which British growers have been placed as a result of higher interest charges, the high rate of sterling and the inordinate cost of energy compared with their Dutch counterparts? Would it not be cheaper to pay an £8 million subsidy, as has been proposed by United Kingdom producers, costing £400 per head, than to support people who will become unemployed at a cost of £2,000 per head? Does the Minister want the industry to survive, or is he prepared to see it go down the drain?

Mr. Wiggin

We are seeking to do all that we can within the legal framework of the Community. The fact that we are expecting an answer on this matter within a fortnight shows that my right hon. Friend has been pushing it continuously at every opportunity, and he will go on doing so.

Mr. Stephen Ross

What answer did the Secretary of State give to the large number of glasshouse growers and horticulturists, of whom I was one, although I had to leave early, when they demonstrated outside the Ministry on Friday? Things have surely come a long way when these people have to demonstrate against a Government for whom most of them voted.

Mr. Wiggin

As I have already said, our insistence on an answer within 14 days puts a deadline on this, which no one else wanted to do, and that is right and proper.

Mr. Colin Shepherd

Is it not permissible within the rules of the Community for temporary assistance to be given, based on the difference in fuel prices since January 1978?

Mr. Wiggin

The Community rules contain guide lines for providing special assistance. The rules are not necessarily the only drawback.

Mr. Mark Hughes

Does the Minister not realise that another fortnight will make the problem of our glasshouse growers this season intolerable, and that unless the Government introduce special aid for them there will be an enormous number of bankruptcies, which no one will welcome?

Mr. Wiggin

Although I was not present, I am told that the growers, who were told that a decision would be forthcoming within weeks, were pleased to hear that a date had been fixed. Their interpretation of the delay was not that expressed by the hon. Gentleman.

Mr. Adley

Is my hon. Friend aware that many of these people have already gone out of business? Does he accept that knowing that an answer will come in two weeks, without knowing what it is to be, is not much comfort unless there is an absolute assurance that the Government will take the steps recommended if we do not get the answer that we hope for?

Mr. Wiggin

The Government will respond. We, too, are acutely aware of the difficulties.