HC Deb 14 March 1985 vol 75 cc423-5
7. Mr. Canavan

asked the Minister of Agriculture, Fisheries and Food what is the total volume and value of surplus food stocks currently held (a) in the United Kingdom and (b) in the European Economic Community as a result of the common agricultural policy.

Mr. MacGregor

On 28 February intervention stocks of beef, breadwheat, butter and skimmed milk powder in the United Kingdom were 321,820 tonnes, valued at their purchase price at some £450 million. On 30 November 1984 intervention stocks of these products and sugar held in the Community as a whole were 7,847,000 tonnes, valued on the same basis at £4.2 billion.

Mr. Canavan

Is it not an unforgivable crime against humanity for the British Government to support the policy of hoarding millions of tonnes of surplus food stocks while at the same time over 30 million people in more than 20 African countries are facing the threat of starvation? If the Government are too narrow-minded to give up membership of the Common Market rich man's club, will they at least consider taking emergency unilateral action to release more food stocks to help starving people in the Third world?

Mr. MacGregor

I hope the hon. Gentleman will agree that it is as a result of the very successful and effective efforts of British farmers that we have moved in 10 years from being a major net grain importer to being a major grain exporter. It is only that that has enabled us to contribute substantially to the food aid programme. The hon. Gentleman will know that substantial quantities of grain are supplied both by the Community and by the United Kingdom and that the European Council agreed in Dublin to provide 1.2 million tonnes of grain to the drought-stricken African countries before the next harvest. We have also done a good deal this year. The United Kingdom is playing a big part in both respects.

Mr. Body

Much as we may blame the common agricultural policy, does my hon. Friend agree that in this country we now have a whole range of national aids in the form of grants, subsidies and tax allowances, nearly all goading farmers into increasing output, whereas in the rest of the Common Market the national aids are directed in the main to other objectives, including helping smaller farmers and new entrants into farming?

Mr. MacGregor

My hon. Friend should consider the changes that have been made in the capital grants scheme in the United Kingdom in the last two or three years, where considerable reductions have been made in the areas where there has been a surplus. He will also note that we have geared those changes so that we are helping and protecting the smaller farmer as against the larger farmer.

Mr. Andy Stewart

Can my hon. Friend assure us that if all the Members of Parliament who received cotton seeds this morning were to plant them, we would not have over-production of cotton?

Mr. MacGregor

I suspect that not many Members of Parliament have yet got as far as realising that they were in their postbags this morning, so I think I can give that assurance.

Mr. Geraint Howells

Has the Minister had any consultation with his counterparts in Europe about abolishing the intervention scheme for beef? Is he in favour of introducing a deficiency payment scheme similar to the one operating within the sheep industry to help beef producers and housewives?

Mr. MacGregor

Of course, the variable premium scheme achieves precisely that. I think the hon. Gentleman will know that we have made it clear that we shall put up just as stern a fight as we did last year to ensure the continuance of that scheme if we can possibly achieve it.

Mr. Phillip Oppenheim

Does my hon. Friend agree that it is preferable in some respcts to have surpluses of food, as we have in Europe, as opposed to deficits, as there are in some of the countries which the hon. Member for Falkirk, West (Mr. Canavan) associates with and supports?

Mr. MacGregor

It is a sensible safeguard to have some surpluses and to have a system which ensures supplies to the consumer of commodities where production can vary from year to year. As I am sure my hon. Friend recognises, the problem is that our farming industry has been so successful in some commodities that we are in danger of having regular surpluses well beyond our requirements. It is to deal with that problem that we have to try to achieve reforms within the Community.

Mr. Deakins

Is the Minister aiming to increase or decrease cereal production in the Community in the coming year?

Mr. MacGregor

We are endeavouring to get a long-term realistic price policy so that producers can respond to market signals. That is why we have been arguing that we should go somewhat beyond what the Commission has been proposing this year and try to get a policy for a longer period than one year.

Sir Paul Hawkins

I appreciate my hon. Friend's tendency to try to help small farmers, but they do not receive the aids that small business men receive. Will my hon. Friend make more positive gestures to help small farmers whose difficulties in managing the grants—

Mr. Speaker

Order. The question is about the EC.

Sir Paul Hawkins

Perhaps my hon. Friend will answer on that basis.

Mr. MacGregor

I have had some experience of both aspects of the question. Within the European Comunity system specific aids go to small farmers, and here at home there is considerable concentration on the small farmer which is as extensive as that on small businesses in general.

Mr. John

Has the Department made an estimate of the stocks of cereal and livestock which will be surplus at the end of the decade, since 50 per cent. more beef and between 60 and 200 per cent. more cereal is now in storage?

Mr. MacGregor

That is difficult to estimate, because we do not know what changes will take place in the price review An extensive review of policy generally is now taking place in the Commission. We shall have to await the outcome of that. It is clear that if we continue with the same policies that we have operated over recent years the stocks of both commodities will be too high.