Soviet Union: Food Distribution Aid (Hansard, 16 October 1991)

The Minister of State, Foreign and Commonwealth Office (The Earl of Caithness)
My Lords, yes. We have already made it clear that in addition to EC food aid, food distribution is one of the four priority areas for the £50 million know-how fund for the Soviet Union.

Lord Campbell of Croy
My Lords, I thank my noble friend for that Answer. Does he not agree that this expertise is as important as the food being supplied through the EC and G7? Can he say whether an effective operation will be undertaken before the severest part of the winter?

The Earl of Caithness
My Lords, I agree with my noble friend on the requirement that there should be as much expertise as money. That is why we are grateful to Sir Ronald McIntosh who visited Moscow and St. Petersburg and brought back the report that he did. The work will follow from that. As regards emergency supplies for this winter, that is not strictly part of the know-how fund although the training that we shall be able to give will benefit the Soviet Union. That is much more a matter for the European Community.

§ Lord Cledwyn of Penrhos
My Lords, does the noble Earl agree that this is a huge problem which cannot be resolved quickly or even in 12 months? Does he further agree that it involves careful long-term planning as well as financial aid? Can the noble Earl say what steps are being taken to offer a co-ordinated plan to seek to resolve the question of distribution and retailing? Finally, can he say what is the latest assessment of the food shortage?

The Earl of Caithness
My Lords, perhaps I may answer first the last question asked by the noble Lord the Leader of the Opposition. It is difficult to get a precise and clear picture at the moment. I agree that this is a problem which will last for some time. That is why we are taking forward the good work of Sir Ronald McIntosh. Three projects have already been agreed and a further four are under consideration. We shall continue to try for the right balance to the answer.

§ Lord Renton
My Lords, bearing in mind that the three Baltic republics are now independent, can my noble friend say what is their position in relation to his original Answer?

The Earl of Caithness
My Lords, as I understand it, the three Baltic republics can, as before, benefit from the know-how fund.

§ Lord Mellish
My Lords, can the noble Earl add to his Answer as regards distribution? It is important that the right people get the right food.

The Earl of Caithness
My Lords, it is equally important that the right food comes from the right place for distribution. That is what Sir Ronald McIntosh was looking at, and that is where we are going to give help.

The Earl of Halsbury
My Lords, does the noble Earl not agree that one of the problems is that throughout the whole of Eastern Europe, which is now in a state of reconstruction, there has been no tradition of middle-level management for at least two or three generations?

The Earl of Caithness
My Lords, as the noble Earl has said, there are severe problems in that area. It is not necessarily the question of a shortage of food. There is the question of producing the right food and a system of distribution to go with it. That requires management.

§ Lord Taylor of Gryfe
My Lords, is the Minister aware that one of the largest experts in food distribution in this country, with a volume of over £7 billion per annum, is the Co-operative movement? That movement has direct association with Centrosoyuz, the non-state food distribution agency in the USSR. Will the Minister assure me that the advantage of that particular circumstance is used in the arrangements which are now being made?

The Earl of Caithness
My Lords, we seek to make use of every advantage. The noble Lord will be pleased to know that private farmer training given by Scotland is particularly useful.

Lord Campbell of Croy
My Lords, can my noble friend say whether the representatives of the British Government are meeting willing co-operation from the officials and others concerned in operating the previous system?

The Earl of Caithness
My Lords, yes. The offer made by the British Government through the know-how fund has been extremely well received in the Soviet Union.

§ Lord Molloy
My Lords, does the Minister agree that this is an enormous problem for the British Government and one that we should not be landed with entirely on our own? Can he say whether it is possible for other governments, particularly those that we regard as allies, to form some kind of permanent commission to be present in the various countries so that we can continue to make sure that the evil of communism can never arise again and thereby set these various countries on the true road of freedom and democracy? Does the noble Earl agree that Britain, as regards matters which it cannot achieve alone, deserves the support of many other countries?

The Earl of Caithness
My Lords, we are doing a great deal bilaterally but as the noble Lord says, the support of other countries is needed. That is why, through the Community, 250 million ecus are being given in grants and 500 million ecus in food credits. On 7th October the EC presidency announced a further 1.25 billion ecus of which we contribute something like 16 per cent. to 17 per cent. That shows that other countries are involved.

§ Lord Holme of Cheltenham
My Lords, is the Minister aware that among the British farming community there is considerable uncertainty as to the amount of grain that may be required over the winter? While appreciating the efforts that the Government are making, the sooner food aid can be established the better the chances of orderly pricing in the grain market.

The Earl of Caithness
My Lords, it is not only the British farmer who is unaware of exactly what is required in the form of grain. However, that is more on the emergency side. In the long term the know-how fund will seek to remedy these deficits.