HC Deb 17 July 2003 vol 409 cc419-20
Mr. Nicholas Brown (Newcastle upon Tyne, East and Wallsend):

What assessment she has made of the prospects for reform of the common agricultural policy (a) sugar and (b) rice regimes. [126277]

The Secretary of State for Environment, Food and Rural Affairs (Margaret Beckett)

Following the very successful outcome of last month's CAP reform negotiations in Luxembourg, which included agreement on a new rice regime, we are awaiting the promised Commission review of the sugar regime.

Mr. Brown

My right hon. Friend the Secretary of State, Mr. Andy Lebrecht and the agricultural specialists in my right hon. Friend's Department deserve our congratulations on their achievements in the latest CAP reform round. Congratulations are also due to Commissioner Fischler and his team of officials, 'who held out for a fair and rational approach to reform. However, as my right hon. Friend will know, more remains to be done, especially on the sugar and rice regimes. The current sugar regime, which is a protectionist regime that relies on exports and refunds, and passes the cost of the regime on to the consumer, is indefensible. May I urge my right hon. Friend not to give up on the United Kingdom's endeavour to have that iniquitous regime reformed?

Margaret Beckett

I am grateful to my right hon. Friend. I will pass on his remarks to our officials. I share his view that this is a major achievement for Commissioner Fischler, without whose determination the scale of reform would not have been achieved.

Our capacity to get agreement and to negotiate in the Agriculture Council is much assisted by the respect and affection that my right hon. Friend engendered and the relationships that he built, on which foundation we were able to build. He is right to say that reform of the sugar regime remains an important priority. We anticipate that Commissioner Fischler will come forward with further proposals, perhaps in September. I share my right hon. Friend's view, as, I hope, does the whole House. that that regime is in great need of reform. I would go so far as to say that although it will not be an easy process, and it is one beset by complications and difficulties, the question should be when the sugar regime is reformed, and not if.

Dr. Vincent Cable (Twickenham)

Does the Secretary of State agree that what is distinctive about the sugar regime is not merely its importance for developing country exporters but that the resistance to reform does not come only from the usual suspects in France but from powerful grower and processor interests in the United Kingdom? What assurances can the right hon. Lady give us that she is willing to take on those domestic vested interests in order to open markets?

Margaret Beckett

Precedent.

Mr. Andy Reed (Loughborough)

My right hon. Friend is to be congratulated on the progress that has been made in CAP reform. We know full well about the difficulties that arise in such negotiations, but is she aware of the desire that the new sugar regime should be brought in as quickly as possible? For those of us who have an interest in the developing world, every day of delay is a disaster for individual farmers and their families. Can she assure the House that she will pursue the matter as quickly as possible? As I have said, every day that passes is a disaster for individuals throughout the world.

Margaret Beckett

I know that my hon. Friend takes a great interest in these issues. He is entirely right that the present regime is very damaging. The present European Union price is about three to four times that at world level. He is also right that the regime itself distorts international trade. As the European Union has reached the everything but arms agreement, the end to this issue is bound to come. It is a matter of how we best and most speedily manage the transition. I can assure my hon. Friend that we are strong advocates of reform in that cause.