HL Deb 20 November 1974 vol 354 cc1024-7

2.54 p.m.

THE EARL OF KIMBERLEY

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 whether they will ensure that British farmers obtain the equivalent price per ton for beet sugar produced in this country next season to that paid for the 1.4 million tons of cane sugar from the developing Commonwealth countries which were guaranteed under the recent EEC negotiations.

LORD STRABOLGI

My Lords, the price paid to the United Kingdom beet grower next season will be determined by the Council of Ministers on the basis of proposals by the Commission. These are likely to be related to the conditions that affect Community production, such as production costs or the relative attractiveness of competing crops. The return which the United Kingdom beet grower is receiving this season is already some 30 per cent. above that of 1973–74. The price to be paid to the developing Commonwealth sugar producer, on the other hand, must, in addition, take account of the price obtainable on the world market, which represents an alternative outlet for Commonwealth sugar.

THE EARL OF KIMBERLEY

My Lords, while thanking the Minister for his Answer, may I ask whether Her Majesty's Government think this provides sufficient incentive for the sugar beet farmer for next season?

LORD STRABOLGI

My Lord, the price increase expected on January 1 will put the United Kingdom beet grower at least on a par with other Community beet growers. This is extremely important for the United Kingdom because the return to the beet grower has lagged behind that available to producers of competing products—for example, cereals. In addition, a very much increased acreage has been agreed for the United Kingdom from next year. The beet grower, therefore, in the 1975–76 season will be guaranteed the full EEC price on all sugar produced up to a maximum of approximately 1.5 million tons. This compares extremely favourably with the United Kingdom maximum quota of 990,000 tons at the present time. The Government have always been committed to securing a significant expansion of United Kingdom beet and this is now in prospect.

LORD BLYTON

My Lords, is the Minister aware that there would be no such wailing about the Common Market and Britain if we had stayed out and does not he now come to the conclusion that the Common Market is the economics of the madhouse?

LORD CARRINGTON

My Lords, can the noble Lord say what the difference in price is this year between what the United Kingdom fanner and the Common Market farmer obtains?

LORD STRABOLGI

My Lords, the minimum price paid for beet in United Kingdom is at present £8.63 per long ton. This price, therefore, will be increased in the light of the following: it is intended that the United Kingdom should move to the full EEC price for sugar and sugar beet on January 1, 1975. This will bring the return up to £102 per long ton at least, and possibly higher. The annual price negotiations in the Community are to begin in December and a reasonably substantial increase is expected for beet producers throughout the EEC.

LORD CARRINGTON

My Lords, does the noble Lord think that information bears out whatever it was that the noble Lord, Lord Blyton, said?

LORD SHINWELL

My Lords, can my noble friend say whether the price paid to the beet sugar growers satisfies them and whether the EEC has the authority or the power to impose a limitation on the production of beet sugar in the United Kingdom?

LORD STRABOLGI

My Lords, I think that I did answer that when I answered the noble Earl, Lord Kimberley, but in reply to my noble friend, perhaps I may remind him that the price increase expected on January 1 will put the United Kingdom beet grower at least on a par with other Community beet growers. In connection with the quota, this has now been increased by the present Government to 1½ million tons from 990,000 tons, as I have explained.

LORD SHINWELL

My Lords, will my noble friend reply to the second part of my question? Are we to understand that the EEC have the power or the authority to impose a limit on the production of beet sugar in the United Kingdom?

LORD STRABOLGI

Yes, my Lords.

LORD STRATHCLYDE

My Lords, I understood that the noble Lord informed the House of the increase which had been received by the beet grower in recent years: can he indicate the increase in the cost of feedingstuff over the same period?

LORD STRABOLGI

My Lords, that is a different question.

LORD DARLING OF HILLSBOROUGH

My Lords, is there any way in which the British Government can influence the French, who are rapidly expanding their beet acreage. The growth of sugar cane in the Pacific, the Indian Ocean and the Caribbean is absolutely essential to the wellbeing of our friends there and it is falling?

LORD STRABOLGI

My Lords, the question of Commonwealth sugar depends on the outcome of negotiations which have still to take place with the developing Commonwealth. Clearly, provided the price is right and the terms of the agreement are otherwise satisfactory, we can expect to receive a great deal of the 1.4 million tons for which the Community has pledged access.

LORD SHINWELL

My Lords, I am sorry to press my noble friend, but do I understand from his reply to the second part of my supplementary question that we are no longer masters in our own house in the United Kingdom in respect of the production of sugar beet and is that acceptable to farmers in the United Kingdom?

LORD STRABOLGI

My Lords, we are now members of the Community, under the arrangements made by the previous Conservative Government, and these matters are questions for renegotiation. My right honourable friend the Minister is negotiating at present and a Statement will be made as soon as possible.

LORD BLYTON

My Lords, does the noble Lord think that this is satisfactory, in view of the fact that before 1970 the deficiency in the balance of trade was £69 million and we are now running a deficit at nearly £3,000 million a year?

LORD SHEPHERD

My Lords, I believe that since, as my noble friend has said, the Minister of Agriculture is negotiating in Brussels to-day and he will be reporting to Parliament on sugar and beef, it may be that this is an area which we could leave until we have that Statement. We shall then have a clearer know-ledae of what has, in fact, been negotiated.