Sheep (Hansard, 15 December 1983)

§ 4. Mr. Kirkwood
asked the Minister of Agriculture, Fisheries and Food what representations he has made to the European Economic Community on the continuance of the sheep regime.

§ Mr. MacGregor
The Commission, in its report to the Council on the functioning of the sheepmeat regime, expresses the view that the main features of the regime can remain in the future. It has, however, proposed a number of adjustments to the mechanisms of the regime and we are examining the implications of these proposals.

§ Mr. Kirkwood
There is widespread concern in the industry in the sheep-rearing areas about the Commission's proposal to limit the variable premium to 25 per cent. of the guide price. As the variable premium scheme operates only in this country, would that not discriminate against the sheep industry in Britain?

§ Mr. MacGregor
The Agriculture Council had a brief discussion on the sheep regime this week, but the question has been referred to a working party, which is currently examining the details. We have made it clear that if the regime is modified it must continue to take full account of our predominant interest and the need to restrain CAP expenditure. It must also take into account the Community's international obligations. The ceiling is one aspect of that, but the matter is complicated, because we are also concerned about the clawback, and a ceiling would help over that. Such details are being thoroughly examined.

§ Sir Hector Monro
I welcome my hon. Friend's comments. Does he realise that the retention of the sheepmeat regime at the highest possible level is vital to the confidence of the hill sheep farmers, who currently deserve all the help that we can give them?

§ Mr. MacGregor
I recognise the benefits that the regime has introduced. The Commission has described this as a transitional measure, but, as a major producer and consumer of sheepmeat, we see no reason why it should be transitional.

§ Mr. Lord
Sheep farmers receive as much money in subsidy per kilo as pig farmers receive for their total product. Is this fair, when the two meats are in direct competition?

§ Mr. MacGregor
My hon. Friend is aware of some of the difficulties created by a heavy pigmeat regime. However, the evidence suggests that there is no direct correlation between the prices and consumption of sheepmeat and other meat.