HC Deb 19 December 2002 vol 396 cc1000-1
11. Mr. Henry Bellingham (North-West Norfolk)

When she next expects to meet sugar beet growers to discuss quota arrangements for next year's harvest. [86775]

The Minister for the Environment (Mr. Michael Meacher)

Ministers have regular meetings with the National Farmers Union, which represents sugar beet growers in the United Kingdom.

Mr. Bellingham

As a friend of beet growers in East Anglia, the Minister knows how vital sugar beet is to the rural economy of the region. It is about the only crop that is currently making a profit. Does he share my concern about "everything but arms" and the fact that Britain is not self-sufficient in sugar production? There is a real fear that our quota will be cut in the future. What hope can he give farmers in my constituency this Christmas that there is a future for sugar beet? What is he doing to encourage biocrops?

Mr. Meacher

I give the hon. Gentleman credit for the fact that he has been active on behalf of the significant number of sugar beet growers in his constituency. As he must certainly know, there has been a recent cut in the quota for the current year, which was enforced by the European Union to avoid breaching the World Trade Organisation ceilings on subsidised sugar exports. I appreciate the considerable problems that that causes for sugar beet growers. They are likely to have had some indication of the cut in advance, but the procedure for making quota cuts in year, after the beet has been planted, is one aspect of the UK sugar regime that we want reformed. That would be of considerable benefit to growers in this country.

As for biocrops, I am extremely keen to see the development of biodiesel and bioethanol. The Government have already cut biodiesel and bioethanol prices by 20p a litre. I am well aware of the industry's argument that a little further cut in duty is necessary to achieve a viable industry, and we are considering that.

Mr. Peter Pike (Burnley)

While it is important to do what we can to encourage the use of biofuels because that is the direction to move in, is it not a fact that the sugar cane and sugar beet industry throughout the world is being destroyed because of the very low price that enables Brazil to dominate the entire world market?

Mr. Meacher

It is true that Brazil is the leading sugar beet grower, and that it dominates world markets. Of course, a case is currently being brought by Australia and Brazil under World Trade Organisation rules. In terms of any reform that does take place, it is certainly important to bear in mind the fact that the intervention price is three to four times the price of sugar on world markets, so reform is inevitable. However, we must take great care to ensure that the benefit accrues not mainly to Brazil, but to the smaller African, Caribbean and Pacific countries. Under the "everything but arms" agreement, which some wag described as the "everything but farms" agreement, and according to the generalised system of preferences and the arrangements in the Cotonou partnership agreement, we have to make sure that the ACP countries—there are 77, some of which number among the poorest in the world—are the ones that gain. That is an objective of British negotiations.