HC Deb 14 February 1985 vol 73 cc464-5
2. Mrs. Roe

asked the Minister of Agriculture, Fisheries and Food what progress has been made in attempts to prevent the Dutch Government from subsidising its horticulture industry through cheap gas prices.

The Minister of Agriculture, Fisheries and Food (Mr. Michael Jopling)

The Commission is now considering what action to take in the light of comments received from member states and other interested parties since it instituted proceedings under article 93(2) of the treaty of Rome.

Mrs. Roe

I am grateful to my right hon. Friend for his reply, but will he accept that the reintroduction of preferential gas prices for Dutch growers has been a matter of concern to United Kingdom glasshouse growers? Even if it is halted now, a competitive advantage, particularly against the long-season protected crop producer, will have been gained by the Dutch during the winter months because of lower energy costs for produce to be marketed now and in the coming months. Does my right hon. Friend agree that it seems to be a calculated policy of the Dutch Government to create an unfair advantage so that our producers simply cannot compete?

Mr. Jopling

I have the greatest sympathy with my hon. Friend in her forthright and clear views. That is why the Government have put the strongest possible pressure on the Commission to require the Dutch to suspend the preferential gas price while considering whether the practice is compatible with the terms of the treaty.

Mr. Torney

In view of the struggle that our horticulture industry will have when Spain and Portugal join the EEC, and as this is the second time recently that the Dutch have kicked the question of fuel prices, thus seriously affecting the United Kingdom industry, does the Minister agree that it is time for concerted action by the Government, without waiting for the EEC to agree, to police the Dutch, otherwise the industry will go bang?

Mr. Jopling

We have raised this matter at every meeting of the Council of Ministers since it became apparent. The hon. Gentleman is right, in that in 1981 the Commission decided that the practice of a state controlled company operating a preferential gas price for horticulturists was incompatible with the treaty of Rome. I am not aware that matters are at all different now. I assure the hon. Gentleman that we shall keep up the pressure.

Mr. Hunter

As the Dutch Government are providing comparable assistance for the poultrymeat and egg sectors, what representations does my right hon. Friend intend to make to combat this form of unfair competition?

Mr. Jopling

If I can be provided with firm evidence of unfair competition by the Dutch in those sectors, I shall be glad to take the matter up with the Commission.

Mr. Stephen Ross

As the Dutch Government have been found guilty of subsidising their growers, why is it not possible to impose a levy on their products? They are swamping our growers. Growers in my area pay 10p a gallon more for their diesel fuel than anyone else on the mainland. They are going to the wall.

Mr. Jopling

At the most recent meeting of the Council of Ministers I proposed to the Commission that it ought to take steps to recover the unfair advantage that Dutch growers have had through what we regard as an illegal subsidy.

Mr. Mark Hughes

In view of that reply from the Minister may I ask whether, if the Government do not get a satisfactory answer from the Commission, the right hon. Gentleman will take unilateral action to protect our growers?

Mr. Jopling

We shall be prepared to do whatever we can, within the law, to ensure that Dutch growers do not get this type of unfair advantage. We shall press the Commission hard to ensure that the Dutch enact the law.