HC Deb 15 December 1983 vol 50 cc1153-4
9. Mr. Teddy Taylor

asked the Minister of Agriculture, Fisheries and Food what is the current gap between the world market price for sugar and the European Economic Community intervention price.

Mr. MacGregor

Expressing the common intervention price for white sugar in sterling terms using the representative rate of exchange and taking the price quoted on the London terminal market for white sugar as representing the world price, the difference between the two on 14 December was £177 per tonne.

Mr. Teddy Taylor

As this staggering gap between Common Market prices and world prices is not unrepresentative of the CAP prices generally, does my hon. Friend agree that the Institute of Fiscal Studies may have made an under-estimate in stating last week that the average cost of the agricultural policy to the average British housewife is between £7 and £8 per week?

Mr. MacGregor

There are very wide variations in many of these calculations. That occurs because they are extremely difficult to calculate. There are many difficulties about my hon. Friend's first question. As he knows, I have had to use a number of different definitions in replying to him. One of the factors that have to be taken into account is the volatility of products on world markets as, for example, with sugar. It is very difficult to come to any single figure.

Mr. Robert C. Brown

Is the Minister aware that the appalling price gap to which he has referred in conjunction with the minimum import price that the EEC has imposed on its dried fruit is guaranteed needlessly to make the price of our Christmas puddings and mince pies much more expensive than ever this year?

Mr. MacGregor

I should say two things to the hon. Gentleman. First, both the Community producers and the ACP producers are guaranteed the same price for their raw sugar. This is not very different from the situation that existed before we joined the Community when United Kingdom consumers paid the weighted average of the price paid to United Kingdom producers and suppliers under the Commonwealth sugar agreement. Secondly, as he will know, in price reviews we have argued consistently for restraint on Community sugar prices.