Agriculture (Hansard, 25 April 1994)

§ 5. Mr. Wigley
To ask the Secretary of State for Wales what representations he has received from fanning unions on the implications of general agreement on tariffs and trade reforms for the future of agriculture in Wales.

§ Sir Wyn Roberts
My right hon. Friend and I are aware of the assessment of the implications of the GATT agreement published by the National Farmers Union, but have not received any direct representations on the matter.

§ Mr. Wigley
Does the Minister accept that GATT is about free trade and that the future of Welsh farming is about getting Welsh products into markets without any discrimination? In those circumstances, will he make it clear to our German colleagues that there is no evidence to show that any beef from Wales has entered the markets affected by BSE? Indeed, the safeguards that we have put in place prevent that from happening. If the Germans persist in going down that road, will the Welsh Office initiate legal action over unfair trade practice?

§ Sir Wyn Roberts
The hon. Gentleman will know that my right hon. Friend the Minister of Agriculture, Fisheries and Food and others have pointed that out to the German Government on more than one occasion. Of course, GATT is intended to facilitate the promotion of free trade, and we are likely to do rather well under the agreement in Wales. Welsh lamb is already doing well: one quarter of the lamb exported from this country is Welsh lamb.

§ Mr. John Marshall
Does my right hon. Friend agree that the prosperity of Welsh agriculture is dependent on the prosperity of its customers? Does he also agree that the GATT agreement will lead to greater prosperity in the world, the United Kingdom and Wales and that it is therefore good for Welsh agriculture?

§ Sir Wyn Roberts
I fully agree. That is why the GATT agreement was so important for this country: it is designed to increase world trade, and we will benefit from it. In Wales, we stand to gain, and we certainly do not share the NFU's somewhat gloomy view of the prospects. We share the Commission's view, which is far brighter.

§ Mr. Denzil Davies
This question may be about GATT and agriculture, but has the Welsh Office studied the effect of GATT on Welsh manufacturing industry, bearing in mind that wages in the far east are much lower—

§ Madam Speaker
Order. The right hon. Gentleman has admitted that his remarks are barely related to the question, which concerns farming and the future of agriculture. Can he do any better?

§ Mr. Davies
The Minister mentioned the fact that customers are very important. If Welsh manufacturing industry is destroyed by GATT, there will be no one around to buy the Welsh lamb to which he referred. So —in view of the importance of Welsh manufacturing industry to Welsh agriculture—what studies has the Welsh Office carried out into the effects of GATT on Welsh manufacturing, bearing in mind the difference in wage levels in industry in Wales and the far east?

§ Sir Wyn Roberts
We certainly stand to gain from the GATT agreement, as I said. The right hon. Gentleman will know that that is why the agreement was negotiated and why it was so important for us and for other countries. Any analysis of prospects is inevitably complex because it involves certain anticipations and assumptions about the course of world trade prices in coming years.

§ Mr. Ron Davies
I think that the Minister understands that there is widespread apprehension in the Welsh farming community about the GATT agreement signed last week and about future common agricultural policy reform. Does the right hon. Gentleman accept that strong environmental and social, as well as economic, reasons exist for maintaining Welsh agriculture? Does he accept that the decline in the traditional family farm and the numbers of young people entering Welsh agriculture are symptoms of the failure of his Government's policy?
As the green box and the CAP reform compensation measures are exempt from GATT, why does not the right hon. Gentleman take advantage of the fact that his Department is responsible for agriculture, the environment, rural affairs and employment? Using the opportunities presented by his office, why does not he develop a long-term strategy for the future development of the Welsh countryside?

§ Sir Wyn Roberts
We do, indeed, take advantage of every opportunity afforded to us by the special standing of the Welsh Office and the fact that we are responsible for agriculture, the economy and the environment. It is very much in our own interests and in our mind to devise a secure, long-term future for agriculture, involving support for the environment. The hon. Gentleman will be aware that that is why we established the Countryside Council for Wales and why we are involved in agri-environmental support. He will also be aware that the hill livestock compensatory allowance and so on exist not simply to offer agricultural support, but for the well-being of the environment.