§ Mr. Marksasked the Minister of Agriculture, Fisheries and Food if he will propose action to the European Community under Protocol 16 to prevent the abrupt dislocation of sugar supplies from developing countries in the event of Australia's present quota going into the world market at the end of 1974.
§ Mrs. FennerSuch dislocation could be expected to occur only if the sugar concerned represented a net addition to supplies on the world market unmatched by any increase in demand. The best guarantee against such an occurrence would be the existence of an International Sugar Agreement of which both Australia and the Community were members. Whatever action was necessary, including in particular the adjustment of quotas for exports to the world market, could then be taken under the provisions of the agreement and in accordance with its objective of maintaining stable and remunerative prices.
§ Mr. Marksasked the Minister of Agriculture, Fisheries and Food what action he proposes under Protocol 16 to phase out Australia's supplies of sugar to the United Kingdom after the end of 1974.
§ Mrs. FennerIn consultations with the Australian Government, we have said538W that a proposal on their part to the Community for the phasing out of the special treatment accorded to these supplies after 1974, rather than its abrupt termination, could in our opinion be founded upon the provisions of Protocol 16 of the Treaty of Accession, and that we would support such a proposal.
§ Mr. Deakinsasked the Minister of Agriculture, Fisheries and Food what assessment he has made of the impact of the phasing out of Australian sugar exports to the United Kingdom on prices on the world sugar market.
§ Mrs. FennerThis would depend on whether the sugar was exported to the world market instead; whether, in this event, it represented a net addition to supplies on the world market; and, if so, whether the addition exceeded any increase in demand.
§ Mr. Deakinsasked the Minister of Agriculture, Fisheries and Food what annual quantities of world sugar are currently marketed at world prices; and what percentage increase in such supplies will take place when Australian supplies for exports to the United Kingdom under the Commonwealth Sugar Agreement are phased out.
§ Mrs. FennerExcluding re-exports, about 10 million tons of sugar—raw value—per year are marketed at world prices. Australia's quota under the Commonwealth Sugar Agreement is equivalent to about 350,000 tons raw value. But the extent to which the diversion of this quantity on to the world market would represent an increase in world market supplies would depend on how far, if at all, it was offset by reductions in sup plies from other sources.
§ Mr. Deakinsasked the Minister of Agriculture, Fisheries and Food (1) when and in what stages Australian sugar exports to the United Kingdom are to be phased out;
(2) what levies will be applied to Australian sugar exports to the United Kingdom after the end of the Common wealth Sugar Agreement.
359W
Mrs. FeonerThe treatment of Australian exports of sugar to the Community after the expiry of the Common wealth Sugar Agreement on 31st December 1974 will be a matter for decision by the Community in due course. We would support a proposal to the Community from Australia that the special treatment at present accorded to her quota under the Commonwealth Sugar Agreement should be phased out after 1974 rather than terminated abruptly.