HC Deb 09 December 1985 vol 88 cc485-6W
Mr. Oakes

asked the Minister of Agriculture, Fisheries and Food what is the level of subsidy per 100 kilos in ecus and per tonne in pound sterling for sales of surplus butter to the Soviet Union.

Mr. Gummer

Sales of butter to the Soviet Union do not attract any special subsidy, although they do qualify for export refunds in the normal way.

Mr. Oakes

asked the Minister of Agriculture, Fisheries and Food (1) if he has any plans to dispose of the surplus butter currently held by intervention boards within the European Economic Community directly to European Economic Community citizens; and if he will make a statement;

  1. (2) if he has received any proposals to reduce the amount of surplus butter currently held by intervention boards within the European Economic Community; and if he will make a statement;
  2. (3) what steps he is taking to reduce the amount of surplus butter currently held by intervention boards within the European Economic Community; and if he will make a statement.

Mr. Gummer

Schemes to dispose of stocks of butter held by intervention agencies within the Community are the responsibility of the Commission of the European Communities, although it is required to consult member states through the management committee procedure on any measures it intends to take.

The Commission recently outlined a number of possible options, including further sales for export and the use of butter in calf feed. Two particular measures, one on the sale of concentrated butter for cooking, the other an extension of an existing scheme under which butter may be used in manufactured foodstuffs, have since been adopted. Both are of benefit to Community consumers. No proposals have yet been made in respect of any other measures, but, if and when they are, we shall consider them on their merits taking into account views expressed to us.

Other than the possibilities already mentioned, I have not received any proposals about the disposal of intervention stocks. But I have received a proposal from a section of the dairy trade that the scope of the existing Community "social butter" scheme, under which open-market butter may be sold at a reduced price to persons receiving social assistance, be expanded to include pensioners and the unemployed. My Department is currently studying this proposal in depth.

In considering any measures to dispose of surplus stocks, we must ensure value for money in terms of the marginal cost (which may be much higher than the actual rate of subsidy involved) and avoid disruption of the normal commercial market.

Mr. Oakes

asked the Minister of Agriculture, Fisheries and Food what is the level of subsidy per 100 kilos in ecus and per tonne in pound sterling for sales of surplus butter under the social butter scheme as defined by European Community Council regulation 2990/82.

Mr. Gummer

The scheme in regulation 2990/82 provides for a maximum Community contribution of 80 ecu per 100 kg (£494.93 per tonne) but does not limit the amount of subsidy which member states themselves may pay. Only Ireland currently operates this scheme.

Mr. Oakes

asked the Minister of Agriculture, Fisheries and Food what was the level of subsidy per 100 kilos in ecus and per tonne in pound sterling for sales of surplus butter under the Christmas butter scheme of 1984–85.

Mr. Gummer

The 1984–85 Christmas butter scheme permitted the sale of specified quantities of butter from intervention and aided private storage at a price reduction of 160 per ecu per 100 kg (£989.85p per tonne). However, a lower rate of 147.25 ecu per 100 kg (910.97 per tonne) applied to those member states (including the United Kingdom) operating the Community's general consumer butter subsidy. The difference between these two rates was equivalent to the maximum Community contribution towards the cost of the consumer butter subsidy.

Mr. Oakes

asked the Minister of Agriculture, Fisheries and Food what was the level of subsidy per 100 kilos in ecus and per tonne in pound sterling for sales of surplus butter as feed for livestock.

Mr. Gummer

There has never been a subsidy for sales of surplus butter as feed for livestock.