Horticulture (Hansard, 3 March 1977)

§ Mr. Strang

The prospects for all sectors of the horticulture industry have recently been the subject of a joint examination by the Government and the farmers unions, and there was much common ground on its conclusions. The examination will form the background to278W a continuing dialogue between the Government and representatives of the industry on the state of horticulture and its prospects.

The review was based on a factual sector-by-sector appraisal of the present position and opportunities of the horticulture industry. The picture that emerged was considerably more encouraging that was foreseen in the reports made by the EDC for Agriculture on the eve of our accession to the EEC. Growers in many sectors have undoubtedly faced difficulties, but have succeeded in responding to them through increased efficiency. They have also benefited from the competitive advantage that the decline in the value of sterling has given home producers over foreign suppliers. A summary of the detailed findings of the sector-by-sector appraisal will be made available publicly and to hon. Members within the next few weeks.

By its very nature, horticulture is essentially an entrepreneurial industry. Its success therefore must depend primarily on the skill and efforts of growers. The industry needs to be flexible, with freedom to take production decisions in the light of market requirements. The review highlighted the importance of growers continuing to take advantage of new technical developments. They must provide a product that the consumer wants at a competitive price, and having produced it they must sell it using the best techniques available. The importance of skilful marketing, especially in a period of change, cannot be over-emphasised. Whilst the industry's traditional role of supplying the home market will continue to be most important, in particular sectors there are attractive export opportunities to be seized.

The industry quite rightly looks for a policy framework in which it can grow stronger, responding to market demands and backed up by the Government in ways that improve its efficiency without inhibiting its essential freedom of individual decision. The Government will seek to ensure that Community systems operate effectively, in providing for a proper degree of preference for Community suppliers and for fair competition within the Community. The Government and the unions are agreed that policies that encourage or perpetuate structural surpluses or growing for intervention should be 279W changed. While the Government must decide on the desirability of further enlargement of the EEC in the overall national interest, they recognise that this enlargement could exacerbate the problem of structural surpluses.

In the domestic context, the Government will continue to provide a high level of research, development and advice for the industry, and to provide capital grants at favourable rates to encourage investment in the modernisation of buildings, plant and equipment. These two methods of support play an important part in promoting the efficiency of the industry.

I believe that growers will respond to the challengers of the changing situation, producing and marketing their produce well and taking full advantage of the backing given by the Government. If so, the industry will be a profitable and economic one. making a major contribution to our balance of payments and to the best use of our own resources.

A summary of a detailed statement on the horticulture industry, which I made today at the "British Growers Look Ahead" conference, is being placed in the Library of the House.