Egg Industry: Assistance (Hansard, 16 January 1989)

§ The Parliamentary Under-Secretary of State, Ministry of Agriculture, Fisheries and Food (Baroness Trumpington)
My Lords, it was not a subsidy. In December, the egg market suffered exceptionally severe disruption as orders were cut drastically or cancelled. As it is not possible to reduce egg production over a short timescale, exceptional measures were necessary in order to prevent the destruction of many small businesses and to bring some stability to the egg market. In short, exceptional measures were needed to deal with an exceptional situation.

§ Lord Molloy
My Lords, I congratulate the Minister on that incredible defence of a colleague. Does she not agree that the entire episode was caused by a hasty and, as it proved to be, a severely expensive ministerial statement at the time? If something similar should befall other industries, will she say whether or not similar action will be taken to assist them?

§ Baroness Trumpington
My Lords, I venture to say that that is a hypothetical question.

§ Lord Gallacher
My Lords, now that the scheme is in its fourth and final week, is the Minister in a position to tell the House whether the whole of the £19 million earmarked for it is likely to be taken up? Can she say whether any credence should be attached to statements that the scheme as such has been of greater assistance to large producers than to small ones?

§ Baroness Trumpington
My Lords, the scheme is still being run, and we do not yet have firm figures on the number of eggs destroyed under it. It seems clear however that the number of eggs attracted by the scheme is likely to be well below the maximum provision of 1.1 million cases. Final figures of uptake will be announced as soon as possible after the closure of the scheme on 17th January. I have no evidence that it favoured large producers more than small ones.

§ Baroness Masham of IIton
My Lords, if surplus money has been earmarked for that reason, can it be used for finding out more about the spread of infections in eggs?

§ Baroness Trumpington
My Lords, I venture to suggest that that is another question.

§ Baroness Burton of Coventry
My Lords, the Minister spoke of exceptional measures. Is she aware that during the 40 or so years in both Houses that I have been fighting the consumers' battle, I have never heard of people who caused the trouble being 5 compensated while the people who suffered from it received nothing? Can she give me any other example?

§ Baroness Trumpington
My Lords, I did not hear the last words of the noble Baroness. The output of the egg industry was worth about £500 million a year at the farm gate, and possibly twice as much at the retail level. About 35,000 farmers depend in whole or in part on their earnings from eggs. More than 3,000 egg packing stations provide employment for at least 15,000 people. Over and above that, a great many other people are engaged in distributing, marketing and selling eggs after they have been packed. In the circumstances where the sale of eggs was 50 per cent. of the production in the week leading up to Christmas, the Government decided that there was no alternative but to provide some short-term help.

§ Baroness Burton of Coventry
My Lords, while I am sure that the noble Baroness had to say all that, may I ask whether she is aware that it had nothing whatever to do with what I asked her? I am sorry to put her on the spot, but I asked her—she did not hear the end of my question—whether she could tell me of any other example where people who caused the trouble or the pain had been compensated, while those who suffered from it had not.

§ Baroness Trumpington
My Lords, the noble Baroness's memory is no doubt a little longer than mine. I am unable to give her an example, but I am sure that there is a precedent for everything.

§ Lord Ennals
My Lords, is the noble Baroness aware that on Wednesday of last week the chief medical officer, Sir Donald Acheson, gave evidence before the Select Committee examining this question? He said that the public health laboratory service had been correct in using the term "epidemic" to describe the increase in reported cases of salmonella due to contamination either of carcases or of eggs. Is she satisfied that by now her department and the Department of Health are speaking with one voice? It does not seem like it.

§ Baroness Trumpington
My Lords, the noble Lord has gone far wide of the Question, which I have answered. If he cares to put down a Question, I shall reply to it—not gladly, but I shall be here.

§ Lord Molloy
My Lords, to British industry this is an extremely important question. It wants to know whether help will be given if this happens to another industry. It will not be fobbed off with the answer that its problems are merely hypothetical. Does the Minister not agree that there is now no good reason why the Ministry of Agriculture should not be abolished?

§ Baroness Trumpington
My Lords, that too, I am happy to say, is another question, considering that I totally disagree with both premises made by the noble Lord.

§ Lord Molloy
My Lords, perhaps the Minister can tell us now how the subsidy to egg producers was 6 calculated, since there are various ways of doing this. Is it not true that a number of British industries believe that they should at least be considered for similar treatment? Or is the answer that in no way will the Government consider this for the remainder of British industry?

§ Baroness Trumpington
My Lords, that is not for me to answer.