HC Deb 04 December 1986 vol 106 cc1072-3
9. Mr. Bruce

asked the Minister of Agriculture, Fisheries and Food if he has made progress in European negotiations for maintaining beef variable premiums for United Kingdom beef products.

Mr. Jopling

The Agriculture Council is considering proposals for reform of the beef regime, including a Communitywide premium scheme which would replace our variable beef premium. We are pressing for agreement on arrangements which give adequate and effective support to our industry.

Mr. Bruce

Will the Minister acknowledge that in areas such as mine, where beef production is crucial to the rural economy, and where the range of alternatives is limited, it is vital that some equivalent support to the variable beef premium is maintained? Will he fight to maintain that level of support to maintain the viability of rural economies in areas such as mine?

Mr. Jopling

Although a number of member states remain strongly attached to intervention as the main form of support, there is a general recognition that intervention is proving too costly. There is a growing feeling of support for the introduction of a new premium on a Communitywide basis for the first time. I am sure that the hon. Gentleman will agree that that is a welcome move.

Mr. Andy Stewart

Will my right hon. Friend confirm that the proposal put forward by the EEC to limit the premium to specialist beef producers with 50 head of cattle discriminates against the British farmer and that he will have none of it?

Mr. Jopling

I agree with my hon. Friend. The Commission's proposal that the premium should be limited to the first 50 animals on any holding is unacceptable because it would discriminate against the United Kingdom. Any new premium would be acceptable only if it did not discriminate against us.

Mr. Geraint Howells

Did the Minister propose a scheme for beef producers similar to that for our sheep producers? If not, why not?

Mr. Jopling

I should like to see our beef variable premium scheme being extended to the whole Community, but it is unpopular with other member states, which do not have the United Kingdom's administrative machinery for running such a scheme. The Commission is anxious to secure a more uniform regime, and a majority of member states prefer intervention as the main form of support. However, acceptance of a new premium Communitywide is growing.

Mr. Cockeram

Will my right hon. Friend explain to his European colleagues that the British beef variable premium scheme directly assists producers and keeps prices down for consumers, and that that must be better than piling up stocks in intervention?

Mr. Jopling

I agree with my hon. Friend, because the beef variable premium scheme gives producers direct price support, keeps consumer prices down and is a less costly and more efficient method than intervention support for beef.

Mr. Home Robertson

Will the Minister acknowledge that there are considerable difficulties in the beef sector at present because of fluctuations in green currency valuations? Does he accept that there is universal support for the principle of a beef variable premium because it is unique in CAP terms in that it benefits both producers and consumers? Will he fight determinedly to keep that principle?

Mr. Jopling

I agree with the hon. Gentleman and I am worried about the low level of beef prices at present, but, as a large farmer, he will know that beef prices are traditionally low at this time of year. Therefore, at present it is important that we match the devaluation of the Irish currency. He will know that immediately after that was accepted I made an application to the Commission in Brussels, which has at long last accepted it and put forward a formal proposal to the Council. Next week we shall fight hard to get the 6 per cent. beef green pound devaluation agreed by the Council of Ministers.