Sheepmeat (Hansard, 4 February 1988)

§ 1. Mr. Colin Shepherd
To ask the Minister of Agriculture, Fisheries and Food what is the current state of negotiations within the European Council of Ministers with regard to the sheepmeat regime.

§ 2. Mr. Wigley
To ask the Minister of Agriculture, Fisheries and Food what progress has been made on European Community proposals for the reform of the sheepmeat regime; and if he will make a statement.

§ The Minister of Agriculture, Fisheries and Food (Mr. John MacGregor)
The current focus of discussions in the Council is on the need for budgetary stabilisers—in the sheep as well as in other sectors. Discussions on the Commission's proposals for longer-term reform of the regime have as yet barely started.

§ Mr. Shepherd
Will my right hon. Friend accept the congratulations of all of us in the House—and, indeed, on a far wider basis—on the successful outcome of his litigation in the European Court, which will be to the benefit of the British sheep farmer? Will he seek to ensure that those farmers who lost premium will be recompensed by the Commission? In the broader context of his negotiations, will he seek to achieve an outcome which will reflect the vital interest of the farmers in the upland areas of the west of England and Wales, who are entirely dependent on the sheepmeat industry and who have very little opportunity for alternative enterprise?

§ Mr. MacGregor
As my hon. Friend has said, the European Court found in our favour in three cases taken up by the British Government this week on the imposition of clawback on sheepmeat not eligible for variable premium. The Court found that that was illegal, and it will not now be imposed. The Court also found that calculations of ewe premium for British producers in 1984 and 1985 were unfair and must be redone.
My hon. Friend asked about repayments to sheep producers. We calculate that the amount is approximately £11 million, and we shall now have to engage in discussions on how to repay British farmers. I am sure that my hon. Friend will agree that this is yet another sign that British persistence can pay off, and that we fight for our legitimate interests.
In answer to my hon. Friend's second question, I have spent a good deal of time recently in the west country. I am well aware of the importance of sheep to west country farmers, and will bear that in mind in the review of the regime which we shall undertake later this year.

§ Mr. Speaker
Order. May I ask for brief questions, please?

§ Mr. Wigley
While welcoming the fact that one hurdle has been overcome, will the Minister do all that he can to speed up the payment of that money? Will he look ahead to circumstances in which there is longer-term negotiation? Can he ensure that areas which are totally dependent on sheepmeat and have no alternative products are safeguarded by an income guarantee; or, alternatively, 1141 that sheep production is identified with that land and will not be sucked into the richer parts, to the detriment of the hill areas?

§ Mr. MacGregor
In answer to the hon. Gentleman's first point, we shall have to study the judgment and discuss the matter with the Commission. I can, however, assure him that I shall be anxious to sort the matter out as quickly as possible—[Interruption.]
The hon. Gentleman's second point goes rather wider than the review of the sheepmeat regime. However, although these matters are complex, I am aware of the importance of any changes in the agricultural sector for hill farmers who are dependent on sheep. [Interruption.]

§ Mr. Speaker
Order. If the hon. Member for Bolsover (Mr. Skinner) remains patient, he may be called, but he will not be called from a sedentary position.

§ Sir Hector Monro
Let me add my congratulations on my right hon. Friend's undoubted success in Europe—and, of course, the congratulations of the National Farmers Union in Scotland.
Will my right hon. Friend maintain — indeed, redouble — his outstanding efforts on behalf of the uplands? There is no profitable alternative there to sheep and cattle farming. Will my right hon. Friend therefore do all that he can to keep the highlands profitable?

§ Mr. MacGregor
I am grateful to my hon. Friend. The review of the regime generally will involve complex, long and hard negotiations. Details on most aspects of the Commission's plans are still lacking, and the attitudes of other member states are not known. However, I can assure my hon. Friend that my general approach will be to resist changes which would discriminate against the United Kingdom's interest, to secure arrangements which will allow fair competition, and to enable the United Kingdom, which very much includes Scottish farmers, to capitalise on our natural production advantages.

§ Dr. David Clark
In his review of last week, did the Minister note that many upland sheep farmers are on perilously low incomes? Will he give the House a categorical guarantee that he will not bargain away any concessions in the sheepmeat regime in order to obtain advantages elsewhere? What proposals has he to improve the incomes of those farmers who rely on sheep?

§ Mr. MacGregor
On the whole, farmers in the livestock sector and in the uplands did not experience the same drop in their incomes as those in the cereal areas, who were heavily affected by weather last year. Obviously we are entering into complex negotiations here. Because of the rising costs of the sheepmeat sector we must accept stabilisers in sheepmeat, and I think the hon. Gentleman will agree with that. I cannot predict the outcome of the negotiations, but I can assure the hon. Gentleman that, as I have clearly said, I shall be fighting to enable all our sheep farmers to capitalise on their natural advantages.

§ Mr. Key
Is my right hon. Friend aware that, of all the breeds of sheep on this island, the only one that is particularly useful and has tremendous potential for export to hot developing countries, is the Wiltshire horned sheep? Will he do all that he can to promote it? Is he aware that, like so much else in Wiltshire, it is good to eat and is not woolly?

§ Mr. MacGregor
I note what my hon. Friend says. I cannot speak precisely on that breed of sheep, but this year 1142 we have managed to secure the renewal to January 1989 of clawback exemption for exports to non-EEC countries, and that will be helpful to our sheep exporters.