§ Lord Houghton of Sowerbyasked Her Majesty's Government:
On what grounds a grant is being made of £686,000 by the EEC for the construction of a 812WA Muslim meat processing plant while slaughterhouse and meat processing capacity conditioned to the methods of humane slaughter laid down by the slaughterhouses Acts is becoming idle and closing down: and
What are the causes of the continuing depression in the meat and meat processing industry; and
Why a grant of nearly £2 million is made to seven projects in redmeat processing and slaughtering at a time when FMC at Castle Bromwich is closing down. Unigate's results show a loss on meat and meat products, and the North Devon Meat Cooperative is in financial difficulties because "there is too much slaughtering capacity"; and
Whether EEC policies are causing the depression and contraction to our meat and meat processing industry on the one hand, while making grants towards still more slaughtering and processing capacity on the other, and what steps they are taking to resolve this contradiction.
Earl FerrersThere are indications that, despite the closures of recent years, there is still significant overcapacity in the slaughtering industry. The resultant difficulties have been exacerbated by the decline in the numbers of cattle available for slaughter. There are, however, signs that cow numbers have now stabilised and a seasonal increase is expected in the cattle available for slaughter as those now being finished are marketed.
The Government negotiated substantial improvements to the support arrangements for beef at the last price fixing. The target price was raised by nearly 11 per cent., and the maximum amount payable under the variable premium was increased by almost half, from 7.32 to 10.759 pence per kilogramme liveweight. In addition, the Government is maintaining the level of the suckler premium, despite the reduction in the basic Community-financed premium, by means of a contribution of £3.6 million from the Exchequer. These measures, along with the record levels of the compensatory allowances for cattle in less favoured areas, should help to increase beef producers' confidence.
The grants referred to have been offered by the European Commission under the terms of Regulation 355/77, which provides assistance to projects which form part of national programmes for the improvement of the marketing and processing of agricultural products. The seven projects mentioned were mainly concerned with the modernisation of slaughterhouses and the meat processing sector, partly to meet new hygiene regulations. All met the requirements of one or more of the following programmes, which were drawn up in consultation with the industry interests concerned and later approved by the European Commission: the programme for the improvement of redmeat slaughterhouses in the United Kingdom; the regional programme for Northern Ireland; the programmes for the improvement of livestock marketing and the processing of livestock products in Scotland and in Wales: and the pigmeat processing programme for England and Wales.