HL Deb 21 June 1977 vol 384 cc537-40

2.49 p.m.

Lord CAMPBELL of CROY

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 the payments of monetary compensatory amounts (MCAs) on imports into the United Kingdom of Danish bacon have had the effect of protecting British housewives from higher prices which would otherwise have resulted from the falling value of the pound sterling.

Lord STRABOLGI

My Lords, the price of bacon is determined by a number of factors, including the level of the monetary compensatory amounts paid on imports. The Government have said that these payments are calculated on the wrong basis, are consequently too high, and should be reduced in order to put United Kingdom bacon curers and pig producers on a fair competitive footing within the EEC. A reduction of these monetary compensatory amounts could be expected to lead to some increase in prices, but is needed to allow our industry to develop in conditions of fair trading.

Lord CAMPBELL of CROY

My Lords, I thank the noble Lord for his reply. Is he aware that within this country there is an anti-EEC campaign to blame upon the EEC publicly almost anything that appears to go wrong while ignoring the benefits? Will the Government speak out and make it plain that it was largely their influence which originally led to a situation where British consumers have been paying bacon prices as low as anywhere in the world? Will the Government also make it clear that it is thoroughly misleading to place upon the EEC the odium for the related difficulties of our producers, the British pig industry?

Lord STRABOLGI

My Lords, our complaint about the MCAs is that they are too high because the sums are done on the wrong basis. Proposals which are now before the Council of Ministers—which, as your Lordships know, is meeting at present in Luxembourg—would, if adopted, allow for a reduction of the pig meat MCAs, in line with our objectives.

Earl FERRERS

My Lords, the noble Lord has said that the MCAs are too high because the sums are done on the wrong basis. Would not the noble Lord agree that one of the reasons why the MCAs are so high is because the Government have refused to devalue the green pound in an attempt to hold steady the cost of living? Would not the noble Lord further agree that, by refusing to devalue the green pound, this has enabled imports to come in at an artificially competitive rate which will affect the pig industry in the future, since there will be no pig meat, to speak of, forthcoming?

Lord STRABOLGI

My Lords, one of the difficulties of devaluing the green pound is that it would affect feedstuffs. It would be robbing Peter to pay Paul.

Lord CAMPBELL of CROY

My Lords, will the Government now give a little more attention to the position of British producers as well as British consumers?

Lord STRABOLGI

Yes, my Lords; we always put British producers first. As I said, this is one of the matters which my right honourable friend is discussing at present in Luxembourg. Since October we have achieved a reduction of the MCA. We have also achieved the abolition of the ACA, which would have been phased out by the end of the year but which has now been abolished as from 15th June. We are taking our case to the European court for a continuation of the subsidy, which has injected £17 million into the industry since the beginning of this year.

Lord NORTHFIELD

My Lords, would my noble friend note that those of us on this side of the House who support wholeheartedly our membership of the EEC also support wholeheartedly the Minister of Agriculture, Fisheries and Food in the fight—a very successful fight—he is putting up in Brussels on behalf of the British farmer, which is quite contrary to what the noble Lord opposite is suggesting?

Lord STRABOLGI

My Lords, I agree absolutely with my noble friend, who puts the matter into perspective.

Earl FERRERS

My Lords, with respect to the noble Lord, would not he agree that the pig industry is in a very disastrous state—as, I think, is recognised by all people? Does he not further agree that to have the green pound about 30 per cent. out of value will affect very substantially the interests of the pig producers and that this will mean—as is happening—that pigs will be slaughtered and that pig meat will not be forthcoming in the future?

Lord STRABOLGI

My Lords, we think that it is better to approach this problem through a reduction of the MCAs. My right honourable friend stated the other day that what we have achieved already we admit will not be enough to put our pig meat industry on a fully competitive footing within the Community. It is our intention to establish fair conditions of trade. A revised method of calculating the monetary compensatory amounts for our pig imports is needed and we shall continue to press for this in the Community.