HC Deb 02 July 1992 vol 210 cc953-4
7. Mr. Clifton-Brown

To ask the Minister of Agriculture, Fisheries and Food what particular factors the Minister will take into account when renegotiating the EC sugar regime.

Mr. Curry

We want a thorough review which takes proper account of our beet and cane interests and brings benefit to sugar users.

Mr. Clifton-Brown

My hon. Friend will be aware that sugar production is an extremely important sector of the United Kingdom farming industry. The present United Kingdom quota system is a long way short of consumption levels. In the circumstances, would it not be intolerable, when reforming the EC sugar regime, if that quota were to be reduced still further?

Mr. Curry

I am sure that my hon. Friend recognises that the United Kingdom has obligations to African, Caribbean and Pacific countries, and it intends to honour those obligations. Therefore, half of our consumption comes from cane sugar. However, it is true that the United Kingdom produces a lot less of our requirements than other countries produce, and if we have to see a reform of the sugar regime which involves cutting quotas, it would be appropriate for the United Kingdom relatively to do better than other countries in that process.

Mr. Tyler

Does the Minister agree that in the sugar beet sector, as in others, the proposed changes in inheritance tax, which have been discussed in Standing Committee, are likely to have some contradictory effects? I welcome the changes in inheritance tax because the industry obviously needs them, but does the Minister agree that over a range of agricultural changes introduced as a result of the common agricultural policy, it will be necessary to avoid preventing the achievement of major environmental access and recreational agreements? The good work that the Minister has done in the past could be undone. Does the Minister agree that some steps will have to be taken to mitigate those effects?

Mr. Curry

We shall have to examine the practical consequences to which the hon. Gentleman refers. We are committed to maintaining and improving access. If they are sensible, farmers are also committed to obtaining greater benefits from giving access and to using the environment as an asset of mutual benefit to everyone. We shall certainly pursue those proposals and ideas.

Mr. Alexander

Will my hon. Friend take into account that some EC countries such as flavour-of-the-month Denmark have quotas that are twice their consumption while Britain has a quota which is half its consumption? Will he bear in mind that Britain therefore contributes nothing to the overall surplus and that the surplus comes from the rest of the EC countries?

Mr. Curry

That is why in any reform that entails cutting quotas, it will be fair for other countries to take the lion's share of the cuts. We must also ensure that the reform addresses price. Otherwise there will be a serious imbalance between the sugar sector and other parts of the arable sectors.