HC Deb 16 November 1976 vol 919 cc515-7W
Mr. Hooley

asked the Minister of Agriculture, Fisheries and Food what steps will be taken by the United Kingdom at the International Tea Agreement Conference in February 1977 to reconcile the differing interests of India, Sri Lanka and East Africa producers.

Mr. Bishop

The meeting to be held in London in February 1977 will be a pre-negotiating Conference held under the auspices of FAO. Our aim will be to try to ensure a successful outcome of the meeting which will pave the way for a full negotiating conference for an international tea agreement. This will involve a strenuous effort to reconcile the differences between the producers of Asia and of East Africa.

Mr. Hooley

asked the Minister of Agriculture, Fisheries and Food by how much the auction price of tea should increase in order to give an equitable return to producers; and what would be the effect of such an increase on the retail price in the United Kingdom.

Mr. Bishop

It is not possible to say whether any particular auction price gives an equitable return to producers, because each producing country has different production costs. During the 'sixties, when tea prices were comparatively stable, new producers, and in particular those in East Africa, increased their output considerably, which strongly suggests that those prices were not unremunerative to them. Since 1973, the London Auction price has nearly doubled and this rise may well have an adverse effect on demand when its full effect is felt at the retail level.

Mr. Hooley

asked the the Minister of Agriculture, Fisheries and Food what proposals will be made by the United Kingdom for an international tea agreement at the forthcoming pre-negotiating conference in London in February 1977.

Mr. Bishop

At the last meeting of the FAO Intergovernmental Group on Tea in Rome in April 1976 the United Kingdom put forward a proposal for an international tea agreement based primarily on the use of export quotas. These proposals are likely to be fully discussed at the meeting in London next February.

Mr. Hooley

asked the Minister of Agriculture, Fisheries and Food what discussions have been held between the Government and British tea traders about proposals for an international tea agreement.

Mr. Bishop

Meetings are held at frequent intervals between officials and representatives of the tea trade and this is particularly so in respect of discussions on the possibility of an international tea agreement. Representatives of the trade accompanied officials to the last meeting of the FAO Intergovernmental Group on Tea in April 1976 and a close contact has been maintained with the interests concerned ever since.

Mr. Hooley

asked the Minister of Agriculture, Fisheries and Food what results he is seeking from the pre-negotiating conference for an international tea agreement to be held in London in February 1977.

Mr. Bishop

My right hon. Friend and I hope that it will be possible for producing and consuming countries to agree on the outlines of an international agreement which can then be the subject of a full negotiating conference.

Mr. Hooley

asked the Minister of Agriculture, Fisheries and Food what conclusions the Government have drawn for the proceedings of the meeting of the tea producing countries in Colombo in November 1976.

Mr. Bishop

I understand that the meeting of tea-producing countries which was scheduled to take place in Colombo in November 1976 has been postponed.

Mr. Hooley

asked the Minister of Agriculture, Fisheries and Food if the Government will support a higher price for tea as part of an international tea agreement, in the light of the fact that the real auction price has fallen by 50 per cent. over the last 15 years.

Mr. Bishop

We take the view that the price of tea will be one of the most important issues to be considered in working out the mechanism of a tea agreement. Our aim will be to try to ensure that the price is remunerative to producers and equitable to consumers. While the auction prices of tea experienced a long period of stability in money terms during the 'sixties and early 'seventies, they have almost doubled since 1973.