§ 7. Mr. YeoTo ask the Minister of Agriculture, Fisheries and Food what recent representations he has received regarding the level of the green pound.
§ Mr. MacGregorI have received a number of representations.
§ Mr. YeoIs my right hon. Friend aware that unless there is a substantial devaluation of the green pound in the 1145 near future, farmers in Suffolk and elsewhere in Britain face the prospect of trading at a substantial competitive disadvantage in relation to farmers in other EEC member states? That is a particularly grave prospect in the light of the difficult year that many experienced in 1987.
§ Mr. MacGregorMy hon. Friend will be aware that the devaluations are normally best made as part of the price fixing, when a balance can be struck in the light of all considerations. I am sure my hon. Friend will agree that the devaluation in the 1987 price fixing, which reduced United Kingdom monetary compensatory amounts by seven points for beef and by 5.5 points in every other sector, improved our competitive position in relation to all our main EEC partners. We have not yet had the Commission's proposals for the coming year. Therefore, it would be premature to say what the position might be, but I note what my hon. Friend has said.
§ Mr. LivseyI am sure the Minister will have noted that his Department's figures show that farm incomes in real terms are now 35 per cent. of what they were 10 years ago. Does he agree that a substantial devaluation now of the green pound, approximately 19 per cent. negative, would be of extreme advantage to British producers, who are suffering greatly because of low farm incomes?
§ Mr. MacGregorI believe that the position varies between the different sectors. I have yet to see the Commission's proposals, and we shall make our judgment in the light of them. However, I note the hon. Gentleman's comments.
§ Mr. Ralph HowellFollowing on from what my hon. Friend the Member for Suffolk, South (Mr. Yeo) has said, I believe that British farmers could compete very well in a common market, but they find it extremely difficult to compete in the uncommon market in which they find themselves. As well as doing away with the green currencies as soon as possible, have the Government any plans to join the European monetary system, which would also help?
§ Mr. MacGregorI am sure that my hon. Friend is aware that the question of the European monetary system is a matter for Ministers other than myself. My hon. Friend asks about getting rid of the monetary compensatory amount system, but he will know that that is one of the most complex areas of the common agricultural policy. The Commission has set the objective of abolishing the monetary compensatory amount system by 1992, when the single European market comes into effect. I strongly support that policy and have already made that clear in the Community.
§ Mr. MorleyIs the Minister aware that MCAs are causing particular difficulty in the United Kingdom pig industry at the present time? What steps do the Government intend to take to stop many pig farmers going bankrupt before MCAs on pigmeat are withdrawn?
§ Mr. MacGregorI have made it clear to our pig farmers that I accept the objective of removing MCAs from the pigmeat sector, and I shall be actively pursuing that in future negotiations. The House should be under no illusions. This is one of the most contested areas in any Council discussion, with varying points of view taken by different member states. I have made it clear that it is my 1146 intention to press hard in the price-fixing negotiations to secure further improvements for the pigmeat sector, because I understand the position that it faces.
§ Mr. LordMay I underline the point that has just been made to my right hon. Friend? He will know that Suffolk has a tremendous number of pig farmers and producers, who are among the most efficient in the world and who do not normally expect help because they understand that the industry is cyclical. However, they are now in real danger, and, unless there is some real, urgent, direct and positive help, most of the pig farmers will go under. I beg my right hon. Friend to examine the issue with great urgency.
§ Mr. MacGregorI assure my hon. Friend, who represents the constituency adjoining mine, in which there are large numbers of pig producers, that I have been well aware for some time of the situation in the industry. I have already made clear my position on MCAs. I am sure my hon. Friend will be pleased to note that last Friday, as a result of United Kingdom pressure, backed by some other member states, a scheme for the reintroduction of private storage aids has now been accepted and will come into place on 15 February. I believe that that will be of some help.
As my hon. Friend correctly pointed out, there is a pig cycle, and all around the world there is now surplus pig production.