HC Deb 03 November 1998 vol 318 cc671-3
7. Mr. Owen Paterson (North Shropshire)

If he will make a statement on the beef industry in Scotland. [56107]

The Parliamentary Under-Secretary of State for Scotland (Mr. Calum Macdonald)

The Government appreciate the fact that beef producers are particularly exposed to the present difficulties in the farming industry. That is why we are providing record support to the farming industry, approximately half of which goes to the beef farmer. Scottish beef producers also benefit from the Government's financial support for specified risk material controls and for the cattle tracing system set-up.

Mr. Paterson

Does the Minister agree that Scottish beef is now the safest in the world, and that there is no proven link between bovine spongiform encephalopathy and new version Creutzfeldt-Jakob disease? Does he further agree that there are no human health or animal health grounds to maintain the beef ban? The ban is flagrantly political, and a grotesque abuse of our trading arrangements with our European partners. Instead of coming up with such complacent answers, the Government should take the case of the Scottish farmers to the European Court.

Mr. Macdonald

Perhaps the hon. Gentleman has forgotten, but the beef ban was one of the legacies of the Conservative Government.

Mr. David Stewart (Inverness, East, Nairn and Lochaber)

My hon. Friend will be aware that I recently carried out a survey of 400 restaurants and hotels in my constituency. It showed that 90 per cent. stock and are a source of Scottish beef, and 99 per cent. are very satisfied with the quality of Scottish beef. Does my hon. Friend agree that the imminent lifting of the European beef ban will provide a vital new niche in the market for Scottish farmers and their high-quality product?

Mr. Macdonald

Indeed, I am encouraged by the report of my hon. Friend's constituency survey. Although cattle prices have been lower everywhere in the past year, Scottish quality beef products are fetching a premium in the market. When the beef ban is lifted, the prospects for Scottish beef exports will be good.

Mr. Charles Kennedy (Ross, Skye and Inverness, West)

Does the Minister share the optimism of the United Kingdom's Minister of Agriculture, Fisheries and Food that the beef ban should be lifted by the turn of the year? The Minister was in the Chamber last week when the agriculture Minister said that he hoped, sooner rather than later, to announce what I think he described as a significant package of additional help for the hard-pressed agriculture sector. Will that be reflected in the Scottish Office vote, and in what the Scottish Office is able to give the Scottish agricultural community?

Mr. Macdonald

The hon. Gentleman will have to wait for future announcements. We are working flat out to lift the ban on beef exports; there has been considerable progress since the Government took office, and we are continuing to work on it. It should also be said that the Government are providing record support for the agriculture industry: £500 million a year is going into farming, and during the year we have increased that by £50 million

Dr. Liam Fox (Woodspring)

Given the drop in farm incomes and the apparently increasing gap between farm-gate and supermarket prices, will the Minister consider three fairly non-controversial steps? First, will he ensure that rigorous carcase checks are carried out for residues so that, now that our beef is the safest in the world, no consumer is put at risk by imported beef? Secondly, will he ensure, through labelling, that consumers see clearly how they can support the domestic industry? Finally, will the Government actively encourage supermarkets and caterers to procure home-produced food? Those three simple measures would go a long way to improve the environment for farmers.

Mr. Macdonald

As the hon. Gentleman will know, action has already been taken in regard to beef labelling and supermarkets. The gap between prices paid to farmers and prices paid by consumers has caused concern, but, as the hon. Gentleman will be aware, the Office of Fair Trading is preparing a report on the major supermarkets, which should be published before the end of the year.