Common Agricultural Policy

HC Deb 03 May 1984 vol 59 cc532-3

10. Mr. Baldry

asked the Minister of Agriculture, Fisheries and Food what has been the overall effect of the common agricultural policy on British farming and on the consumer since the United Kingdom joined the European Economic Community.

Mr. Jopling

It is, of course, a matter a conjecture what other policies might have been pursued had we not joined the European Community, and any measurements of the kind envisaged would equally be quite conjectural.

I would point out, however, that since 1972 our agriculture industry has succeeded in raising the volume of its gross output by 14 per cent. and in raising the nation's self-sufficiency for temperate-type food from 63 per cent. to 76 per cent. At the same time, retail food prices have not increased faster than prices in general.

Mr. Baldry

Will my right hon. Friend confirm that since we joined the Community net exports of British food have increased by about 77 per cent.? Indeed, France and the Netherlands are now net importers of butter from the United Kingdom. Will he confirm also that we are now self-sufficient in beef and for the first time are net exporters of cereals? As my right hon. Friend confirmed, food prices have declined relative to other prices. Does he accept that our membership of the Community has been of considerable benefit to the British farmer and British consumer?

Mr. Jopling

I am happy to confirm what my hon. Friend has said. Our participation in the common agricultural policy has been good for consumers, for agriculture and for the nation generally.

Mr. Deakins

Does the Minister recall that when we entered the Common Market in 1972–73 one of the major arguments was that the CAP would be bad for Britain and that we would gain compensating economic advantages from access to an industrial free trade market? Surely the CAP has been a disaster for the British economy, as was forecast at the time. The Minister should recognise that and turn to his right hon. Friend the Secretary of State for Trade and Industry for confirmation of such beneficial effects, if any, that have come to Britain from our membership of the Community.

Mr. Jopling

The hon. Gentleman is wrong. He will recall that the Conservative party was elected to Government in 1970 on the policy of shifting from the old system of deficiency payments and guaranteed prices to a system of support based on import levies, which is virtually the same as the CAP system. We were elected on that policy, irrespective of whether we joined the Common Market, and we believe that it is the best policy for Britain.

Mr. Jackson

Does my right hon. Friend agree that the period of expansion for British agriculture since 1973 has produced an expansion of farm borrowings? Will he take the opportunity to urge bank managers to take a cool, calm and collected view of farmers' borrowings until the uncertainties about quotas are finally resolved?

Mr. Jopling

I have noted what my hon. Friend has said. Borrowings by British agriculture have increased, but I believe that it is generally agreed that they are at a prudent level. I hope that in this period of difficulty, especially in the dairy sector, the banks will be as tolerant and helpful to their dairy farmer customers as possible.

Mr. Mark Hughes

Will the Minister reconsider his reply to my hon. Friend the Member for Aberdeen, North (Mr. Hughes)? Although a European-wide operation to remove small farmers from the dairy levy is unacceptable, it is entirely within the power of the right hon. Gentleman and the Government to arrange our domestic affairs so that the small farmers have less of a burden to pay and a greater burden is placed on the larger farmers.

Mr. Jopling

I hope that the hon. Gentleman and the hon. Member for Aberdeen, North (Mr. Hughes) will forgive me if I have not answered that question. I thought that it was right to put our general principles on the line. I am glad that there is now sweetness and light between our two parties over this basic part of the Government's policy. The rules of the Community, when considering reallocations of quotas that become unused, provide for a move in favour of the small farmer. We shall be considering that point carefully.