HC Deb 22 January 1987 vol 108 cc1016-7
5. Mr. Conway

asked the Minister of Agriculture, Fisheries and Food what assessment he has made of the effect on agriculture of supporting only standard quantities of production.

Mr. Gummer

I assume that my hon. Friend is referring to the ideas put forward by the SDP/Liberal alliance whereby farmers would get a support price for only a certain quantity of production. As outlined, this scheme would mean that CAP support would go to only about one third of United Kingdom cereals production, yet would apply to as much as 80 per cent. of continental production. Under the scheme two thirds of our cereal production could well become uneconomic. The effects of the proposals of the right hon. Member for Plymouth, Devonport (Dr. Owen) on our rural economy would be catastrophic.

Mr. Conway

I am grateful to my right hon. Friend for his reply. Will he assure the House that any idea of introducing quotas on cereals or limitations on a per farm basis would be damaging to British farming interests? While he and his right hon. Friends have been most tenacious in defending British interests in the European negotiations, [Interruption]—irrespective of how boring or embarrassing this may be for Members of the alliance—may I ask him to spell out clearly to the farming community the effect on its income if it follows the proposals of the right hon. Gentleman?

Mr. Gummer

My hon. Friend might be interested to know that the likely effect on the annual cereal income of British cereal farmers would be £850 million. That would be the effect of the policy put forward by the SDP and supported by the Liberal party spokesman for agriculture when he spoke to the Farmers Union of Wales.

Mr. Maclennan

Why do Agriculture Ministers this afternoon find it necessary to misrepresent the speech made by my right hon. Friend the Member for Plymouth, Devonport (Dr. Owen) and fail to draw attention to the fact that he made it clear that any such scheme would depend crucially upon a tough negotiating stance on the issue of the British share of the cereals market? Does he not realise the weakness of the Government's position on national shares in the light of their failure to secure a fair share for British milk producers?

Mr. Gummer

The hon. Gentleman's right hon. Friend made absolutely clear exactly the point at which the cut-off would take place, in advance of the negotiations. He told us the figures. All we have done is to work out the figures which he gave at Cirencester to an audience which included the president of the National Farmers Union, who said about the right hon. Gentleman that he clearly did not understand the matter at all and that his proposals were utterly catastrophic. The hon. Gentleman must go back to his right hon. Friend and ask him why he is not here to defend himself.