HL Deb 23 July 1969 vol 304 cc973-5

2.41 p.m.

LORD KILMANY

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government what estimate has been made of the loss in production of sugar beet in Scotland that will follow the closing down of the beet sugar factory at Cupar.]

THE JOINT PARLIAMENTARY UNDER-SECRETARY of STATE for SCOTLAND (Lord Hughes)

My Lords, on this year's acreage the loss will be approximately 170, 000 tons. There will, however, be no overall loss in production throughout Great Britain.

LORD KILMANY

My Lords, arising out of that reply, may I ask the noble Lord whether he is aware that this is not only a matter of loss of employment for some 200 persons in Cupar, important though that is, but also a loss throughout the South and East of Scotland of some 13, 000 acres of sugar beet, and that this in turn affects more than 6, 000 farmers, many of whom have invested in expensive machinery in order to harvest the crop?

LORD HUGHES

My Lords, first, we must remember that the 13, 000 acres will not go out of production. They will be used for other crops which are habitually grown in Scotland. On the subject of the machinery, I understand that beet machinery is written off over a period of five years. Secondly, the Sugar Corporation will continue the factory in operation until the end of the 1971 season. Beyond that, I can say that the Sugar Corporation will be willing to help farmers by taking their machinery, probably at the written-down value, which will be of considerable help to them as compared with selling it at perhaps only scrap prices to dealers.

THE EARL OF LAUDERDALE

My Lords, can the noble Lord say whether the Sugar Corporation have considered the conversion of this plant for the extraction of polymers and sugar esters from sugar beet, the import of which costs this country something like £10 million a year?

LORD HUGHES

My Lords, that is rather far away from the original Question. I would point out that although the Government own 36 per cent. of the share capital the British Sugar Corporation are not a Government body, but operate on a commercial basis. They are closing the Cupar factory because they are losing altogether at the rate of £250, 000 a year in its operation. They can make money, they say, out of producing in bigger factories in other parts of the country. I have no doubt that, having gone into the matter from a commercial point of view, if they saw any prospect of making money at Cupar by an alternative process, such as the noble Earl has described, their commercial instinct would have drawn them naturally towards it.

LORD NUGENT OF GUILDFORD

My Lords, is the noble Lord aware that his solution of growing other crops is not really a satisfactory one? Is he aware that sugar beet occupies a pivotal position in the crop husbandry of these farms and that there is no other crop that the farmers can grow which will clean up the fields of pests, cereal diseases and so on, to give a break in the con rotation? Will the noble Lord have one further look at this matter in the interests of crop husbandry?

LORD HUGHES

My Lords, I cannot accept the point which the noble Lord, Lord Nugent, is making. The combined wheat and barley acreage in Scotland is 800, 000. The main break crops are potatoes, fodder crops and grass. The potato acreage was 104, 000 in 1969, fodder crops 190, 000, and rotation grass over 1, 700, 000. When one compares 13, 000 acres, the highest figure which beet has reached in Scotland for many years, to those other figures, it is infinitesimal.

THE DUKE OF ATHOLL

My Lords, is the noble Lord aware that sugar beet tops are a valuable crop for feeding cattle in the winter, and the decision to close this factory will have a fairly serious effect, too, on the number of cattle these farmers will be able to keep throughout the winter?

LORD HUGHES

My Lords, I understand that the value of the tops is not what it used to be. But I would point out that if the fanners had recognised the value of sugar beet throughout the years and had not allowed the crop to fall to less than 7, 000 acres four years ago, this problem might well not have arisen.

THE DUKE OF ATHOLL

My Lords, four years ago they were told that if they got the crop up to 13, 000 acres within a reasonable time they would be safe, and that at 16, 000 acres, I think it was, the break-even point would be reached. Is the noble Lord aware that it is thought that next year they would have reached this 16, 000 acres?

LORD HUGHES

My Lords, considering that I negotiated that agreement with Sir Edmund Bacon, I am aware of it. It is a matter of personal regret to me that after three years circumstances should have changed and that even at 16, 000 acres the Sugar Corporation say Cupar cannot possibly make a profit. I reiterate that if the area had not fallen to 7, 000 acres, this situation might never have arisen.

LORD ALLERTON

My Lords, may I ask the noble Lord whether I am right in thinking that at least in England sugar beet is grown on a quota system? If this is correct, will the quota which Scotland is losing be transferred elsewhere?

LORD HUGHES

My Lords, I would draw the noble Lord's attention to the Answer which I orginally gave.