HL Deb 13 June 1979 vol 400 cc613-5

2.47 p.m.

Lord ROBERTSON of OAKRIDGE

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 state what progress has been made by the EEC in bringing their export policy on sugar into line with arrangements under the International Sugar Agreement.

Lord SANDYS

My Lords, the Community is not a member of the International Sugar Agreement but has expressed its interest in acceding to the Agreement if suitable terms can be negotiated. Exploratory discussions are taking place between the Community and the International Sugar Organisation on possible terms of accession and we hope that these will lead to substantive negotiations in due course.

Lord ROBERTSON of OAKRIDGE

My Lords, I thank the Minister for his Answer, which has special relevance in view of the reported lack of success at a meeting yesterday between representatives of the EEC and the International Sugar Organisation. May I ask the noble Lord for an assurance that Her Majesty's Government will work in the Council of Ministers at the EEC for an early outcome to these negotiations, and one which will involve a reduction in the use of money from Community funds to subsidise exports of surplus domestic production at rates at present up to £180 per tonne, to the detriment of overseas sugar producers, including members of the Commonwealth; and a solution that will involve acceptance of an upper limit of tonnage exported while the market remains depressed?

Lord SANDYS

My Lords, in view of the fact that negotiations are about to commence, I think it would be impossible for any Government to give the prior commitment that the noble Lord seeks. Nevertheless, the Government agree that the Community should accept a fair share of the burden of stabilising world market prices at a more satisfactory level alongside other exporters. The question of precise equivalents of the discipline on Community exports with the quotas accepted by other International Sugar Agreement members will be a matter for negotiation between the Community and members of the Agreement.

The Lord Bishop of SOUTHWARK

My Lords, can Her Majesty's Government tell us the cost per tonne of sugar from the Community and the cost per tonne from Commonwealth countries?

Lord SANDYS

No, my Lords, I cannot provide that information immediately to the right reverend Prelate, but I could provide it in the course of a letter.

Lord HATCH of LUSBY

My Lords, can the Minister assure the House that in the renegotiations of the Common Agricultural Policy, to which the Government are pledged, they will look deeply into the question of the competition between subsidised beet sugar from Europe and the cane sugar on which many of our Commonwealth friends rely for their economy?

Lord SANDYS

My Lords, the noble Lord, Lord Hatch of Lusby, will be aware of course that the Commonwealth Sugar Agreement concluded at the time of the United Kingdom's entry into the EEC. This matter is a process of negotiation and I cannot go further than that at the present time.

Lord HAWKE

My Lords, has any consideration been given to turning surplus EEC sugar into motor spirit, as was done in Brazil during the Second World War?

Lord SANDYS

My Lords, my noble friend has advanced a very interesting case for quenching one part of the energy crisis. I shall pass on this suggestion to my right honourable friend.