HL Deb 12 June 1980 vol 410 cc740-1WA
Lord CHELWOOD

asked Her Majesty's Government:

Whether they will summarise the proposed European Community's sheepmeat regulations; what objections or reservations the New Zealand Government have expressed about them; and whether the proposals meet fully, in spirit and letter, the promises made to New Zealand by the Community and by British Governments.

Earl FERRERS

The agreement reached by the Council of Agriculture Ministers on 28th–29th May contains the following main features:

  1. (i) Sheep farmers' incomes would be supplemented by the payment of annual premiums based on reference prices. 741 These would initially be set at a different level in each of five Community regions, but reference prices would be aligned to a common level after four years;
  2. (ii) Intervention would be available at a member state's request in its territory between July and December each year;
  3. (iii) Member states may choose to operate a variable premium system similar to the present United Kingdom fat sheep guarantee, instead of intervention. The United Kingdom has made it clear that she will operate variable premiums;
  4. (iv) Implementation of the regime is subject to the successful negotiation of voluntary restraint agreements with third country suppliers of sheepmeat;
  5. (v) Provision is made for export restitutions but the use of these would be subject to the terms of the agreements with third country suppliers.

The New Zealand Government has expressed particular concern about the inclusion of provision for intervention and for export refunds. The arrangements will not, however, be implemented until agreement between the Community and New Zealand has been reached and implemented and this agreement is expected to take in those aspects of the operation of the Community sheepmeat arrangements, including any use of export refunds, which bear on New Zealand's trading interests.

I consider that New Zealand's interests have been fully safeguarded.