Common Agricultural Policy

HC Deb 29 June 2000 vol 352 cc1025-6

1. Mr. Derek Twigg (Halton)

What plans he has for reform of the common agricultural policy arable regime. [127030]

The Minister of State, Ministry of Agriculture, Fisheries and Food (Ms Joyce Quin)

As part of the Agenda 2000 agreement we achieved a substantial narrowing of the gap between European Union and world prices. We also secured a further review of price levels in 2002 and will use this opportunity to further our reform agenda. Arable area payments account for one third of CAP expenditure in the United Kingdom and will amount to about £1 billion this year.

Mr. Twigg

Is there not a better way to use the £1 billion that subsidises large arable farm businesses? The savings being made could be used to conserve the countryside and support business plans to return small farms to profitability.

Ms Quin

My hon. Friend is right to talk in terms of a new direction for agricultural policy, which is precisely what the Government are seeking to bring about through their use of the rural development regulation and in their reform agenda throughout the European Union.

Mr. James Paice (South-East Cambridgeshire)

In the common agricultural policy debate on 11 May the Minister said that he was disappointed that there was no cut in the sugar price, and that the case for the cut was strong, because the support was increasingly out of line with that for other crops. Does he not realise that with a harvest price of £60 a tonne for wheat and barley this year, no farmers will make a profit? He is giving the clear impression that the only justification for cutting the sugar price is that because farmers cannot make a profit on any other crop, they should not make one on sugar beet either. What reasons does the Minister have for seeking a cut in the sugar price when sugar is about the only arable crop left that is making any profit whatever?

Ms Quin

I am rather surprised to hear the hon. Gentleman ask that question, because I am sure that he knows the answer. My right hon. Friend the Minister rightly pointed out the difference between some of the prices for arable products, particularly wheat, and the price for sugar, which is about four times the world price. We know that the European Commission is making proposals for changes to the sugar regime, so we need to look at them and act consistently with our drive for agricultural reform in general. The hon. Gentleman should also take into account the fact that many of our food processing industries are damaged by the artificially high EU price for sugar. It is the Government's duty to consider everyone who is affected by the EU regime and find a sensible way forward. We shall certainly consult all parts of the sugar industry, but we are concerned about our responsibilities to consumers and the British economy generally.