Sugar

HC Deb 01 November 1974 vol 880 cc13-4W

Mr. Blaker

asked the Minister of Agriculture, Fisheries and Food if he will make a statement about the adequacy of sugar supplies in the United Kingdom.

Mr. Peart

The shortfall in shipments of sugar under the Commonwealth Sugar Agreement which occurred earlier this year was made good by imports from other sources and by reductions in stocks, and the total quantity of sugar moving into distribution in the United Kingdom in the year ending 30th September was higher than in the previous year. Deliveries of sugar in retail packs by refiners and merchants over the past few months have been at least as high as during the same period of last year. Shipments under the Commonwealth Sugar Agreement between now and the end of the year are expected to be close to normal levels but the yield of the beet crop, which is now being processed, will unfortunately be well below normal. However, taking into account imports from other sources, I consider that total supplies during this period should be adequate to meet normal demand.

Mr. Marten

asked the Minister of Agriculture, Fisheries and Food if he will set out the precise terms of the recent sugar deal with the EEC, showing the costings.

Mr. Bishop

I assume the hon. Member is referring to the decision to introduce a subsidy on imports of sugar from the world market.

At their meeting last week, the Agricultural Ministers of the EEC had before them a proposal from the Commission—draft Council instrument R/2563/74, copies of which have been deposited in the Vote Office—and took the following decision: On the basis of Article 16 of Regulation No. 1009/67/EEC, the Council agrees to adopt the measures necessary to ensure an adequate supply of sugar throughout the Community for the 1974/1975 marketing year, at common prices, the costs being financed by the Community under the 1975 EAGGF budgetary provisions. The first stage is for the Council to adopt the appropriate Regulation proposed by the Commission for an amount of 200,000 metric tons. The Council will decide on further stages in the light of experience and depending on the effectiveness of this measure.

In the document referred to above the EEC Commission estimates the cost of the subsidy will be 100 million units of account—approximately £50 million—for imports of 500,000 metric tons of sugar.