HL Deb 22 March 1971 vol 316 cc646-8

2.43 p.m.

LORD SHEPHERD

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 will be the effect on citrus exports of British Honduras of the decision to stop the supply of orange juice concentrate through the National Health Service; whether they consider twelve months' notice as reasonable, bearing in mind the period of time British Honduras has supplied Her Majesty's Government; and whether they consider such a period of notice sets an example to E.E.C. countries when Her Majesty's Government is seeking long-term agreements for sugar in its E.E.C. negotiations.]

THE PARLIAMENTARY UNDERSECRETARY OF STATE, FOREIGN AND COMMONWEALTH OFFICE (THE MARQUESS OF LOTHIAN)

My Lords, the main effect of Her Majesty's Government's decision on exports of orange juice concentrate from British Honduras will be the need to find alternative markets for some 600 tons of concentrate. I understand that the citrus growers expect to be able to do this. Her Majesty's Government have also offered to help the British Honduran Authorities in this context. As regards the notice given, the contracts with the suppliers of orange juice concentrate were negotiated annually. A year's notice would not, therefore, seem unreasonable.

The arrangements we are seeking to make with the E.E.C. for Commonwealth sugar are not comparable either in form or size with those that existed for orange juice. The E.E.C. are well aware of our position on sugar and of the vital importance of sugar exports to Commonwealth producers.

LORD SHEPHERD

My Lords, would the noble Marquess not agree that it is not a question of size, but of principle, and that £150,000 is a considerable sum to the little British Colony of British Honduras? Would the noble Marquess not agree further that, in view of a contract of some 30 years, 12 months' notice would be regarded by most people as utterly unreasonable? Can the noble Marquess say what offer Her Majesty's Government have made in this matter to British Honduras?

THE MARQUESS OF LOTHIAN

My Lords, it is perfectly true that the economy of British Honduras will to some extent suffer as a result of this decision. It is for this reason that we have offered to assist in any way that we can. Two officers of Her Majesty's Government have already visited British Honduras and had talks with representatives of the citrus industry there. The British Honduras Government are considering at the moment how best to meet the situation, and we are hoping that they will put proposals to us in due course with a view to seeing in what way we can help them.

LORD SHEPHERD

My Lords, I am glad that officials have been in British Honduras, but would the noble Marquess not agree that to diversify this particular export will prove extremely difficult for British Honduras? Will the noble Lord consider seriously what help Her Majesty's Government can give in this matter, and perhaps relieve British Honduras of the 22½ per cent. (I think it is) purchase tax imposed on this particular concentrate if imported into this country?

THE MARQUESS OF LOTHIAN

My Lords, I take note of what the noble Lord has said with regard to purchase tax. As I said before, we are awaiting proposals from the British Honduras Government as to which way they think this difficult problem can best be solved.

LORD BROCKWAY

My Lords, in view of the difficult position of British Honduras now, will Her Majesty's Government seriously reconsider the decision they have made? Further, will they display in the negotiations that are now going on a much more generous attitude towards British Honduras?

THE MARQUESS OF LOTHIAN

My Lords, obviously, I cannot undertake to give the noble Lord any assurance about reconsidering this decision, which was taken on medical grounds. Our concern at the moment is to do our best to help the British Honduras Government to meet the situation.

VISCOUNT ST. DAVIDS

My Lords, will the noble Marquess be able to take into account that, even if something is carried on on a 12-monthly basis, when it has gone on for 30 years it has set a complete pattern of life for a large number of people? Therefore will be take some special steps to make sure that the process of change is smoothed over as much as possible?

THE MARQUESS OF LOTHIAN

My Lords, I take note of the noble Viscount's question.