HC Deb 29 March 1984 vol 57 cc442-4
10. Mr. Latham

asked the Minister of Agriculture, Fisheries and Food whether he will make a statement on the latest position regarding the European Community farm price negotiations.

15. Mr. William Powell

asked the Minister of Agriculture, Fisheries and Food when he now expects the discussion on the annual price review to be concluded.

Mr. Jopling

I refer my hon. Friends to the statement that I made yesterday in reply to my hon. Friend the Member for Suffolk, Central (Mr. Lord), in which I said that the Council will resume its consideration of these matters tomorrow and Saturday.

Mr. Latham

As the strain of any proposed settlement is likely to be taken by the livestock producers, can we be certain that my right hon. Friend will not give way one inch — will he? — over the retention of the beef premium?

Mr. Jopling

I have made it clear to the Council of Ministers that it is essential to continue the beef premium.

Mr. Gould

Apart from solving the Irish problem on milk, how close are we to the fundamental reform of the common agricultural policy that the Foreign Secretary laid down as a precondition for any increase in our own resources contribution?

Mr. Jopling

We have some reservations on the present proposals about the Irish milk quota, the settlement on the MCAs, the beef premium system and sheepmeat.

Mr. Nicholas Winterton

Can my right hon. Friend tell the House why the irresponsibility and inaction of successive Governments in this country and within the European Community should be borne by the livestock and dairy sector of the United Kingdom? Will he tell us why, as members of the Community, we should be expected to take the full amount of butter from New Zealand as part of our quota?

Mr. Jopling

My hon. Friend is wrong to suggest that the burden of those arrangements will fall upon the United Kingdom. Farmers throughout the Community are dissatisfied. The other day I was interested to read the following by the leader of one of the main French farmers' unions: The French Government has yielded too much and accepted too many restrictions while France's European partners have not accepted the same sacrifices.

Mr. Deakins

How will the cost of the proposed agricultural package compare with that for the current year? If it is likely to be higher, how does the right hon. Gentleman square it with the Prime Minister's assurance to the House two weeks ago that agricultural expenditure would be reduced as a precondition of budgetary reform and an increase in own resources?

Mr. Jopling

Whether or not the cost of the common agricultural policy in 1984 exceeds the budget remains to be seen because market circumstances could yet change. If necessary, cost-saving measures would have to be adopted later in the year, as they were last year.

Sir Peter Emery

Will my right hon. Friend point out to the many people affected that the milk settlement that he is negotiating is likely to allow more flexibility for small farmers in the south west and other areas than for large milk producers? Does he accept that the noise being made by the NFU and many small farmers is on the whole for the benefit of the very large producers rather than their own, and that what the Minister has achieved is much better than most people realise?

Mr. Jopling

I am extremely grateful to my hon. Friend. It is true that the settlement on milk is much more satisfactory to British farmers than would have been the case if other Governments had had their way. Although there will be difficulties for milk producers throughout the Community, I do not believe that there will be discrimination against British producers.

Mr. Wallace

Given the benefits for many sheepmeat producers since the inception of the sheepmeat regime, will the Minister give an undertaking that he will not agree to any measures that would lessen the effect of that regime for upland hill sheep producers?

Mr. Jopling

As I said a few moments ago, we have expressed a reserve with regard to the present sheepmeat proposals, which are unsatisfactory, and we shall be seeking changes in the next two days.

Mr. Leigh

As we produce only 80 per cent. of our dairy product requirements and France produces twice as much as it needs, is the Minister aware that there has been criticism from our dairy farmers that the French have secured a much better deal? Is that true? Is the French Minister popular with his farmers and can he make the deal stick?

Mr. Nicholas Winterton

He is rather more popular than our Minister.

Mr. Jopling

As I said a few moments ago, the leader of the main body of French farmers has been making noises to his Minister similar to those made to me by my hon. Friend the Member for Macclesfield (Mr. Winterton). The House may be interested to know that the Dutch Minister came to the Council the other day and told us that he was being called Santa Claus because he was always giving things away.

Mr. Robert Hughes

As the Minister agrees with us, for example, that the variable beef premium is of great benefit to consumers as well as to the industry, and as he has stated that he is keeping a reserve on it and the sheepmeat issue, does he realise that it will help his negotiating position in seeking to retain those advantages if he states specifically at the Dispatch Box today that he will use the veto to prevent any changes from taking place that would diminish the advantages of those regimes?

Mr. Jopling

I have always resisted exposing my negotiating posture in advance on these extremely difficult negotiations.

Mr. Canavan

Get up off your knees.

Mr. Jopling

Nevertheless, I hear what the hon. Member for Aberdeen, North (Mr. Hughes) says and clearly the use of the Luxembourg compromise is something that one always has available in certain circumstances.