HC Deb 19 February 1987 vol 110 cc1041-2
1. Mr. McQuarrie

asked the Minister of Agriculture, Fisheries and Food what assessment he has made of the impact on British sheep producers of a two-tier pricing policy.

The Minister of State, Ministry of Agriculture, Fisheries and Food (Mr. Gummer)

I apologise for the absence of my right hon. Friend the Minister of Agriculture, Fisheries and Food, who is in the USSR, where tomorrow he hopes to sign an agreement with the Russians.

We successfully resisted the Commission's proposal for a two-tier support system for sheep at last year's price fixing. The system proposed would have penalised efficiency and deterred structural improvements, and would have disadvantaged our farmers by about £8 million.

Mr. McQuarrie

Will my right hon. Friend confirm that the average United Kingdom flock is four times greater than that in the EEC? Does he agree that the comments of the alliance leader in support of the two-tier structure would, as the president of the National Farmers Union has said, annihilate the British sheep industry?

Mr. Gummer

I am sure that my hon. Friend is right and that the two-tier pricing system would do nothing but harm to Britain. The two-tier pricing system suggested by the right hon. Member for Plymouth, Devonport (Dr. Owen) could mean that cereal farmers would transfer to sheep production. That would damage not only the cereal farmers but all who produce sheep in the United Kingdom.

Mr. Livsey

What negotiations will the Minister enter into this year to ensure that the sheepmeat regime continues successfully in the United Kingdom? Is he aware that the commissioner, Mr. Andriessen has stated that there will be a review this summer? I am glad that he has acknowledged that the alliance has no plans for a two-tier pricing system for the sheep industry.

Mr. Gummer

We shall seek a prudent pricing policy for all major commodities. We must continue to fight for the key beneficial elements of the sheepmeat regime and resist discriminatory cuts. The right hon. Member for Devonport did suggest that he accepted the possibility of two-tier pricing for sheepmeat.

Mr. Adley

Is my right hon. Friend aware that many members of the Dorset National Farmers Union believe that the arrangements for lamb and other products from New Zealand are a considerable disadvantage to them? Can he state whether that agreement will remain indefinitely?

Mr. Gummer

We believe that we owe a particular debt to New Zealand. We sought to negotiate permanent arrangements for the access of New Zealand products into the Community when we joined it, and we stand by our promise.

Mr. Home Robertson

I apologise for the temporary absence of my hon. Friend the Member for Pontypridd (Mr. John), who is not in Russia. I presume that the Minister of Agriculture, Fisheries and Food has gone to the Soviet Union to learn something about public relations.

Before the Minister gets too carried away about the deficiencies of SDP policy, may I gently remind him that his policies are not going down too well at present with the NFU or with the Department of the Environment? Will he hazard a guess as to how much longer it will be before increased sheep production on low ground leads to surplus mountains of lamb under the present chaotic trends?

Mr. Gummer

We are used to the doom and gloom of the Labour party. Opposition Members complain if something is in surplus, but they also complain if there is no surplus. However, sheepmeat is not in surplus. We produce an extremely good product and I have no doubt that we shall continue to dominate the market.