§ Mr. Clifton-BrownTo ask the Minister of Agriculture, Fisheries and Food what plans he has for the operation of the wool guarantee in the 1993 clip year; and if he will make a statement.
§ Mr. GummerClause 48 of the Agriculture Bill will terminate the wool guarantee—by removing "wool" from the schedule to the Agriculture Act 1957 which lists those products which qualify for a guarantee—with effect from enactment of that Bill. The Government have, however, consistently made clear their intention that the guarantee should end on 30 April 1993—the last day of the 1992 wool clip year. To ensure that this timetable is met, Agriculture Ministers have today laid an affirmative resolution order in both Houses of Parliament to revoke the British Wool (Guaranteed Prices) Order 1955, SI 1955/487 as amended by SI 1976/602. This order has been the subject of consultation with producers' representatives.
The order removes the requirement on Ministers annually to fix a guaranteed price for wool. By avoiding the substantial disruption which could have occurred had Ministers been required to fix a guarantee for the interim period between 1 May and subsequent enactment of the Bill, this action will ensure greater order and certainty both for producers and the industry. Retention of the guarantee for merely part of a clip year would not have been consistent with the objective of the mechanism, which was to stabilise the return from wool over time rather than to provide short-term producer support.
The order does not override the need for primary legislation to amend the Agriculture Act 1957 to terminate the operation of the guarantee definitively. This remains the function of clause 48 of the Agriculture Bill.
The Government's commitment to sheep producers. and the wool industry remains firm. I am convinced that, having achieved financial responsibility for its own affairs, the industry will respond positively to this new situation and will take advantage of the opportunities which it will provide.