§ LORD DONALDSON OF KINGSBRIDGEMy 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 whether, so far as the enlarged Common Market is concerned, minimum import prices for eggs, which at present protect the home industry from imports below the cost of production, will be removed completely on the first day of the transitional period; furthermore, whether exports of eggs from the E.E.C. to the United Kingdom will be subsidised to the extent of the difference in foodstuffs cost between the Common Market and this country.]
EARL FERRERSMy Lords, under the terms of the agreement reached in Brussels, minimum import prices for eggs would be replaced during the first year of the transition by the system of threshold prices and levies-on-imports from third countries which are already used in the existing Community. During the transition, trade in eggs between members of the enlarged Community would attract subsidies or levies to the extent of the difference in feedingstuffs-costs. These subsidies and levies will be phased out as cereal feed prices are aligned during the transition.
§ LORD DONALDSON OF KINGSBRIDGEMy Lords, I thank the noble Earl for that reply. May I ask whether I am right in understanding that, in addition to this small subsidy which is repre- 796 sented by the feedingstuffs difference, suppliers in the Common Market will be able from the beginning of the transitional period to send their eggs to this country at any price, irrespective of the cost of production, whereas up till now we have always been able to apply to the Board of Trade for dumping restrictions?
EARL FERRERSMy Lords, of course the eventual idea is that there should be a free market in eggs within the Community. During the transitional period there will also be a free market, and in that respect other countries may send eggs here and we may export our eggs to other countries. I have no reason to believe that the British egg industry, which is highly competitive, will not be able to fulfil this object.
§ LORD DONALDSON OF KINGSBRIDGEMy Lords, is the noble Earl aware that over-production is current in the E.E.C. and is on the edge here? It is rather difficult for an industry to be put straight away into a state of surplus on both sides.
EARL FERRERSYes, my Lords, I entirely take the point of the noble Lord that there has been a surplus. But, as he probably knows better than most, the egg industry is one which acts rather like a yo-yo, and by the time we enter the transitional period, which will not be until 1973, different circumstances may obtain.
§ LORD STONHAMMy Lords, can the noble Earl say whether the position of Northern Ireland farmers will be considered before the minimum import prices of eggs are abolished?
EARL FERRERSMy Lords, I think that the position of all farmers, whether they are in England or in Northern Ireland, will be considered.
§ LORD SHINWELLMy Lords, is the noble Earl aware that I am fully cognisant of almost every clause in the Treaty of Rome and that I can find no reference to a yo-yo?