HC Deb 10 June 1980 vol 986 cc166-71W
Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food whether it is proposed to restrict imports of sheepmeat from countries other than New Zealand ; if so, whether he expects to reach agreement with those countries ; and what effect he expects the restriction will have on United Kingdom exports to the countries in question.

Mr. Buchanan-Smith

: It is the Commission's intention to negotiate voluntary restraint arrangements with all countries which supply the Community with sheepmeat. These will be agreed only if the countries concerned are prepared to accept the terms, and I do not anticipate any effects on other trade.

Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food what is his analysis of the extent to which the decline in imports of sheepmeat from New Zealand has been due to the raising of the tariffs on imports to 20 per cent. ad valorem.

Mr. Buchanan-Smith

: A number of factors have led to the decline in imports from New Zealand and it is not possible to assess their relative importance.

Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food what was the quantity and value of sheepmeat exported to each of the other European Economic Community countries in 1979

Volume (Tonnes) Valuemillion) Average price. (plkg)
1979:
Exports to :
France 5,107 6.663 130.5
Belgium/Luxemburg 14,126 20.622 146.0
Netherlands 938 1.389 148.1
West Germany 13,607 19.828 145.7
Italy 2,365 3.161 133.7
Eire 46 0.078 169.6
Denmark 459 0.546 119.0
1980 (January to March only):
Exports to :
France 187 0.225 120.3
Belgium/Luxemburg 4,122 5.919 143.6
Netherlands 210 0.305 145.2
West Germany 3,687 5.393 146.3
Italy 764 1.018 133.2
Eire 20 0.028 140.0
Denmark

These figures do not include live exports.

If implemented, the sheepmeat regulation agreed by the Council of Agriculture Ministers will provide for an intervention price and a guide level for variable premiums of 293.2 ECU/100 kg or 181.4p/kg in 1980–81, except in Eire where the intervention price will be 276.2 ECU/100kg or 170.9p/kg. The price received by United Kingdom exporters will depend on a number of factors including quality and the market situation in the importing member State, although I would not expect substantial exports when the Continental market price is at or below the intervention price.

Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food how the prices agreed to by the European Economic Community for sheepmeat compare with the prices realised in the United Kingdom market in 1979 and in the current year to date ; how these prices compare with those received by farmers in (a) hill farms and (b) elsewhere ; and whether the higher European Economic Community prices will be in addition to

and in the first four months of 1980 ; what was the average price in each case ; how this compares with the price now agreed by the European Economic Community ; whether United Kingdom exporters will now receive the European Economic Community price in respect of exports to other European Economic Community countries.

Mr. Buchanan-Smith

: Provisional figures from the United Kingdom trade statistics are as follows :

the existing subventions to United Kingdom sheep farmers.

Mr. Buchanan-Smith

: The guide level for variable premiums agreed to by the Council of Agriculture Ministers for sheepmeat in the United Kingdom for the marketing year April 1980/March 1981 is 293 ECU per 100 kg deadweight. This is equivalent to 181p per kg, compared with the current guaranteed price of 155p per kg under the fat sheep guarantee scheme.

The average market price in the United Kingdom in the marketing year 1979–80 is estimated to have been 141p per kg and in the year 1980–81 up to the week ending 25 May the market price has averaged about 146p per kg.

Prices received by hill farmers for fat lambs of certifiable quality are generally similar to those in the lowlands for lambs of comparable quality.

The Community variable premium arrangements will replace those under the fat sheep guarantee scheme, but will not affect the system of support for hill livestock farming under the EEC less favoured areas directive.

Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food whether he expects the production of sheepmeat in the United Kingdom to increase as a result of the measures agreed to in the European Economic Community ; and what is his forecast for the years 1981 to 1983.

Mr. Buchanan-Smith

: I expect the introduction of a common market organisation for sheepmeat to result in an increase in United Kingdom production, but I can give no specific forecasts.

Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food by how much he expects the United Kingdom price of United Kingdom and New Zealand sheepmeat, respectively, to rise as a result of the agreement to restrict imports from New Zealand.

1970 Consumption of Mutton and Lamb ozs/head/week Expenditure p/week
Income Group A (£40 or more) 5.06 8.14
B (£23—£40) 5.06 7.77
C (£12.50—£23) 4.78 7.34
D 1979 (provisional) 4.27 6.59
Income Group A (£145 or more) 4.04 22.47
B (£90—£145) 4.05 21.19
C (£56—£90) 4.08 21.33
D (under £56) 4.29 22.51

The income figures relate to gross weekly income of head of household. The national food survey figures do not distinguish between mutton and lamb from different sources.

Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food what has been the fall in consumption of sheepmeat in the United Kingdom since 1970 ; and by how much further he expects consumption to fall as a result of the agreement reached in the European Economic Community on the marketing of sheepmeat.

Mr. Buchanan-Smith

: Consumption of mutton and lamb in the United Kingdom

Mr. Buchanan-Smith

: The agreement now under negotiation between the Community and New Zealand, which must be voluntarily accepted by both sides, would be intended to limit imports to past levels, not to reduce them, and would involve a reduction in the import duty. Such an agreement will not lead to any increase in prices in the United Kingdom.

Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food what was the estimated quantity of sheepmeat consumed per head in each income group for households with one or more earners in 1970 and 1979 ; what is his estimate of the cost to each group in each year ; and whether the food survey gives any indication of the origin of the sheepmeat consumed by each group as between New Zealand and other sources.

Mr. Buchanan-Smith

: The information requested is as follows :

was 9.6 kg per week per head in 1970 and is provisionally estimated at 7.0 kg per head in 1979. The Community sheepmeat arrangements agreed by the Council of Agriculture Ministers should not in themselves cause any reduction in consumption in the United Kingdom. They could, in fact, help to increase consumption.

Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food how much sheepmeat he expects to be taken into intervention in the European Economic Community in 1980 and in 1981 as a result of the recent agreement, if implemented.

Mr. Buchanan-Smith

: There will be no intervention in the United Kingdom, which is the major producer in the Community, and the variable premium arrangements which we have secured should prevent intervention in France being increased by additional imports from the United Kingdom. As a result I would expect quantities taken into intervention to be relatively small.

Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food whether the recent European Economic Community agreement on the price of sheepmeat would enable exporters to claim export restitutions for sheepmeat sold direct to third markets and not out of intervention.

Mr. Buchanan-Smith

: The agreement reached by the Agriculture Council on sheepmeat includes provision for export restitutions, but any use of this provision would be subject to the terms of agreements negotiated with third country suppliers.

Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food what is his estimate of United Kingdom exports to France of sheepmeat, following the agreement on prices, for 1980 and 1981 ; and whether he expects French sheepmeat to be sold in the United Kingdom market.

Mr. Buchanan-Smith

: I can give no forecasts of the future level of exports of sheepmeat to France. It is unlikely that any significant quantity of French sheepmeat will be sold in the United Kingdom as France is a net importer of lamb and has higher production costs.