HC Deb 09 June 1988 vol 134 cc970-1
1. Mr. Nicholas Baker

To ask the Minister of Agriculture, Fisheries and Food when he last met the president of the National Pig Breeders Association; and what matters were discussed.

The Minister of Agriculture, Fisheries and Food (Mr. John MacGregor)

My ministerial colleagues and I keep in regular touch with representatives of pig producers, including the National Pig Breeders Association, on a wide range of issues.

Mr. Baker

Is my right hon. Friend aware of the serious state of the pig industry, with a large number of pig breeders going out of business? Will he bear in mind the need to continue his pressure in Europe for the abolition of MCAs? Will he examine allegations that some EEC countries are illegally subsidising their pig industries? That practice is unfair competition.

Mr. MacGregor

Yes, I am aware of the position of the pig industry. Although prices recently stabilised, as my hon. Friend knows, we are in the classic situation of supply outstripping demand, which is the basic cause of the problem. There is a strong case for the abolition of pigmeat MCAs, and I have been making that case in the Council. As always, it is one of the most hotly contested issues in any Council discussion, with several member states taking different views. It is not easy to get the required majority for any line of action.

On my hon. Friend's point about unfair state aids, the Commission is investigating an Italian state aid, which I think will be found to be illegal. It is also investigating French state aids. We are always assiduous in drawing such matters to the Council's attention.

Mr. Martlew

Is the Minister aware that, according to the latest figures from the National Pig Breeders Association, in the year to April, the prices that breeders were paid for pig products dropped by 12 per cent., yet the increase in supermarket prices was 2 per cent.? Can the Minister explain that? Could the reason be that a cartel is being run by the major superstores in this country?

Mr. MacGregor

They are matters for commercial consideration. The basic reason why pig prices have fallen is that supply and demand are currently out of balance; supply is greater than demand. However, although the price to pig producers has fallen, the average ex-farm price of feed wheat is now nearly £17 per tonne lower and hat feed barley is about £5 per tonne lower than they were at this time last year. That is undoubtedly helping margins.

Rev. Ian Paisley

Is the right hon. Gentleman aware of the serious position of the pig industry in Northern Ireland, which is on the periphery of the United Kingdom? Can he give the House any inkling about how his negotiations are going and what is being done to rid us of MCAs?

Mr. MacGregor

Ever since price-fixing discussions began I have been pressing pigment MCA as one of my main issues, and I shall continue to do so. I have again done so this week. We shall return to the Council on Monday of next week, when it is hoped that we shall start to reach conclusions. I assure the hon. Gentleman that I shall again press the matter then.

Dr. David Clark

In his discussions with the National Pig Breeders Association, did the Minister discuss the implications for the pigmeat trade of the freeing of the market in 1992? Can he guarantee that the health of the British public will remain protected against infected imported meats?

Mr. MacGregor

Obviously I bear the move to 1992 very much in mind when arguing for the elimination of pigmeat MCAs. However, I believe that that case is already very strong because the current position is out of kilter with the original reason for setting pigmeat MCAs, so I should like them to be eliminated now. Certainly it should be done by 1992.

We are moving towards harmonisation with regard to protection against disease within the Community. However, it is very important that we have guarantees from countries that are swine fever free that their Governments are as assiduous as we are in ensuring that those areas remain disease free.