HC Deb 19 March 1981 vol 1 cc416-7
8. Mr. Cockeram

asked the Minister of Agriculture, Fisheries and Food if he will make a statement on the progress of his Department's efforts to ensure that the United Kingdom's poultry industry does not continue to be at a disadvantage compared with other European Economic Community poultry producers.

Mr. Peter Walker

The Commission is expected to make proposals very shortly to harmonise inspection standards and methods of charging. It is still considering certain information we sent it on State aids to processors of poultrymeat in France. As regards the recently announced income aids to French farmers, the Commission has now opened proceedings against France under the State aid provisions of the Treaty of Rome.

Mr. Cockeram

Is my right hon. Friend aware of how disappointing that answer will be to the United Kingdom poultry industry, because it offers no help with interim problems? Is he aware that Midland Poultry Holdings in my constituency, one of the largest United Kingdom producers, has been offered French birds at well below the cost of production in this country? What does he intend to do to help the industry with its interim problems?

Mr. Walker

My hon. Friend will know that because of the problems only a few weeks ago I provided an additional £2 million of aid to the industry. The poultry industry will be pleased to know that the Commission is making proposals to standardise charges and standards of supervision.

Miss Maynard

Are poultry producers in other EEC countries receiving subsidies, direct or indirect? If so, why cannot our producers have the same subsidies so that they can compete on equal terms? Do European hygiene standards comply with our import standards? Will the Minister negotiate compensation for redundant poultry workers similar to that for dairy farmers?

Mr. Walker

The purpose of the so-called compensation for dairy farmers is to enable them to move to activities that are not in surplus in Europe. The Commission has proposals to standardise inspection standards and methods of charging. The Government gave additional aid to the industry before those decisions were taken. On the general question of national aids, one of the most important issues in the Community is the degree to which some countries—and one in particular—are giving substantial national aids, which pervert competition in Europe. That problem must be at the forefront of the Commission's activities in the coming months.

Mr. Peter Fraser

Will my right hon. Friend take action to ensure greater uniformity in the application of inspection standards by local authorities? Is he aware that some United Kingdom poultry producers are even more disadvantaged than others?

Mr. Walker

That is one reason for providing aid. Gradually, more conformity is being established in the United Kingdom.

Mr. Mark Hughes

Does the Minister accept that the arrangements for the poultry industry are disadvantageous to British producers? Unless he takes action urgently, many poultry producers, like glasshouse growers, will be forced out of business.

Mr. Walker

I did not approve the regulation. That was done by my predecessor. I have come forward with the additional money necessary to see the poultry industry through this phase. Obtaining standardised methods of enforcement and payment will be a big step forward. The previous Administration did not achieve that.