HC Deb 08 July 1982 vol 27 cc448-9
16. Mr. Richard Shepherd

asked the Minister of Agriculture, Fisheries and Food what are the anticipated costs in the coming crop year of (a) storing the surplus European Economic Community production of sugar and (b) the producers' contribution in the form of export subsidies levied on excess output.

Mr. Peter Walker

It is not yet possible to forecast the amount of surplus production from the 1982 crop that will be eligible for storage payments, or for how long it will be stored. On the second part of the question, if the levies by which producers contributed to the cost of export subsidies are imposed at the maximum rate during 1982–83, they are likely to raise about 550 million ECU, which is equivalent to £304 million at the current market rate of exchange.

Mr. Shepherd

I am grateful to my right hon. Friend for that answer. Will the maximum permissible producers' contribution on the beet crop in 1981–82 cover all the costs of exporting from the Community? If not, what sort of deficit will arise to the Community?

Mr. Walker

It is estimated that a deficit of about £52 million will be incurred on exports of the 1981–82 crop. That deficit will be carried forward to be met from the producers' levy on the 1982–83 crop.

Mr. Teddy Taylor

In fixing such a high price for sugar at about £250 a tonne, did the CAP Ministers, including my right hon. Friend, take into account the enormous damage done to the economies of some of the poorest countries by the dumping of EEC sugar on the world at a cost of about £100 a tonne?

Mr. Walker

In our negotiations we also took into account the improved price for ACP country exports to the European market.