HC Deb 09 June 1988 vol 134 cc979-80
12. Mr. Shersby

To ask the Minister of Agriculture, Fisheries and Food what recent proposals made by the European Economic Community Commission have been accepted for assistance in the refining in the United Kingdom of raw sugar imported from African, Caribbean and Pacific countries.

15. Mr. Page

To ask the Minister of Agriculture, Fisheries and Food if the European Community Commission recognises any special circumstances surrounding the refining, in the United Kingdom, of raw sugar imported from the African, Caribbean and Pacific countries; what proposals have been made to the Council of Ministers; and if he will make a statement.

Mr. Donald Thompson

In this year's price fixing the Commission has proposed a Community-funded aid of about 52p per tonne which will be available to all Community pure cane refineries and which could be adjusted to take account of changes in the storage levy and in Community prices. It has also proposed authorisation for a national aid of up to about £3.28 per tonne, 25 per cent. Community funded, on ACP sugar refined in the United Kingdom.

Mr. Shersby

Will my hon. Friend confirm that the Government are willing to pay in full whatever percentage of the special refining aid the Commission stipulates should be at the discretion of the United Kingdom Government?

Mr. Thompson

At present we are concentrating our efforts on persuading the Council to adopt the Commission's proposals which provide for this maximum rate of national aid. We shall review our stance in the light of the decisions reached by the Council.

Mr. Page

As it has been about two years since the EC agreed to review this sugar cane refining margin, would my hon. Friend like to make a statement to the House about whether the increases will be backdated to 1 July 1987 as was originally proposed?

Mr. Thompson

Under the Commission's proposals, not yet accepted by the Council, the suggestion is that both refining aids would be backdated to 1 July 1987.

Mr. Spearing

Will the Minister confirm that, whatever the outcome of any price negotiations in any year, the commitment to 1.3 million tonnes of cane sugar is fulfillable only if the price permits the exporting Third world countres to cover their transport and refining costs in this country? Is it not therefore important that any price should enable the EC to discharge its moral commitment to those Third world countries with which it is in association?

Mr. Thompson

I know of the great interest of the hon. Member for Newham, South (Mr. Spearing) in this matter and the employment implications. I agree with all that the hon. Gentleman has said.

Mr. Wells

Will my hon. Friend tell the House whether the cost of this extra sugar refining margin will be borne by the sugar producers or directly by the Government? Can he tell us whether we shall simply spend the money of the European Community to which we contribute 20 per cent.?

Mr. Thompson

The Community will contribute 25 per cent. and the Government will contribute the remainer.