HC Deb 08 May 1989 vol 152 cc538-9
2. Mr. Ieuan Wyn Jones

To ask the Secretary of State for Wales if he will make a statement on his policy towards any measures arising from the current review of the sheepmeat regime which could disadvantage Welsh producers.

The Secretary of State for Wales (Mr. Peter Walker)

1 welcome the initiative to create a unified Community sheepmeat market, which offers the prospect of better access to continental markets However, we will continue to resist changes that would discriminate against producers in Wales and will seek to secure arrangements that will allow free and fair competition, provide support at reasonable cost and thus enable the industry in Wales to benefit from its natural production advantages and its efficiency.

Mr. Jones

Does the Secretary of State accept that the 1988 agreement on sheepmeat stabilisers and the ewe premium was the result of short-term political expediency and was not in the long-term interests of either sheep producers or consumers in Wales? Will the Secretary of State now say to the people of Wales that he will use his good offices to ensure that the sheep sector in Wales is not damaged as the final result of the agreement on the sheep regime?

Mr. Walker

Yes. I assure the hon. Gentleman that those views on the future of the sheepmeat regime are shared by my right hon. Friend the Minister of Agriculture, Fisheries and Food. I have no doubt that we shall reach an agreement that will secure the continuation of sheep farming on the hills of Wales on a proper viable basis.

Mr. Ron Davies

Did the Minister see Commissioner MacSharry on BBC Wales yesterday? The Commissioner made it quite clear that the variable premium would have to be phased out by 1992. Does the Minister accept that if that happens, it will be a hammer blow to the small family farms which form the basis of the economic and social life of much of upland Wales? If he accepts that those will be the consequences of the loss of the variable premium, will he press in Cabinet for the adoption of the measures that are available to the United Kingdom Government under the structures programme to assist by some means of direct compensation?

Mr. Walker

Whatever Mr. MacSharry said, I remember the immense hostility expressed by the Opposition when, as Minister of Agriculture, Fisheries and Food, I introduced the variable premium scheme. I am glad that they have at last paid tribute to that scheme. Having introduced that scheme, I wish to ensure that if there are to be changes in it, it continues to secure the viability of sheep farming in Wales.