HL Deb 09 June 1964 vol 258 cc874-5WA
LORD AMHERST OF HACKNEY

asked Her Majesty's Government:

Whether the considerable increase in the world price of raw sugar since the Anglo-Irish sugar agreement was signed has necessitated any revision of its terms and what further action is contemplated.

THE JOINT PARLIAMENTARY SECRETARY, MINISTRY OF AGRICULTURE, FISHERIES AND FOOD (LORD ST. OSWALD)

In the light of the changes in the sugar market situation since the Anglo-Irish Agreement was negotiated in 1962 a review has been held of its operation under Article 12 of the Agreement.

The Government of the Irish Republic represented that the balance of advantage of the Agreement as originally calculated had been seriously disturbed by the substantial increase in the level of the world price of sugar since the terms were negotiated. It is therefore proposed in the current and subsequent years to increase the price paid for the 10,000 tons of refined beet sugar produced in the Irish Republic bought each year to the equivalent of the price paid under the Commonwealth Sugar Agreement.

The Anglo-Irish Sugar Agreement includes a formula fixing the price at which this sugar is resold in the Irish Republic. In present conditions, this formula has proved to be too rigid. It is proposed to leave the Sugar Board to resell to the Irish Sugar Company at the best price reasonably obtainable; that is, in the way the Board sells other sugar.

The provisions of the Agreement governing the importation of sugar into the Irish Republic have been slightly modified to take account of the fact that the Minister for Agriculture for the Republic is the licensing authority for the importation of sugar and to cover some exceptional arrangements for imports of sugar into the Irish Republic in 1964.

Copies of the draft Revisional Agreement are being placed in the Library of the House.