HC Deb 11 February 1976 vol 905 cc257-8W
Dr. Bray

asked the Minister of Agriculture, Fisheries and Food what action the Government intend to take following the ending of the subsidy to Common- wealth sugar exporters to safeguard the earnings of Great Britain's traditional cane sugar supplies.

Mr. Bishop

The situation that led to special arrangements in 1975 for ACP and other preferential sugar, including Commonwealth sugar, was an unusual one with a shortage of supplies and world prices far above production costs. Conditions on the world sugar market have changed considerably since then. The normal pattern provided for under the Sugar Protocol of the Lomé Convention is one of guaranteed access, a guaranteed minimum price and the free negotiation of prices between buyers and sellers. Thus the earnings of our traditional cane sugar suppliers are safeguarded since access is assured for an agreed quantity for each State at a minimum price negotiated annually under the provisions of the Protocol.

Dr. J. Dickson Mabon

asked the Minister of Agriculture, Fisheries and Food what communications he has had from the cane sugar refiners about the reorganisation of the industry; and if he will make a statement.

Mr. Peart

I have received from the cane refining companies the paper which analyses the prospects and problems of the cane refining industry and discusses a number of possible solutions. This question will need very careful consideration by the Government, and I cannot yet say what my attitude will be to the specific ideas put forward by the refiners. I can say, however, at this stage that the Government will take no decisions on the reorganisation of the industry without there being a full opportunity for representatives of the employees, and other interested parties, to state their views and for these to be taken into account. We are studying the refiners' paper urgently but in view of the complexity of the problem, I do not expect to be able to make a statement for some time.

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