HC Deb 04 February 1981 vol 998 cc119-20W
Mr. Marlow

asked the Minister of Agriculture, Fisheries and Food what effect the closure of the Tate and Lyle Liverpool sugar cane refinery will have on trade in sugar cane with developing countries.

Mr. Peter Walker

The European Community is committed to buy and import 1.3 million tonnes of ACP sugar under the Lome convention. This commitment is not affected by the closure of Tate and Lyle's Liverpool refinery. Tate and Lyle has stated that it will endeavour to continue to take its present contracted amounts of ACP sugar, refining the bulk of these supplies at its two remaining refineries and selling any quantities of raw sugar that are surplus to United Kingdom requirements for refining and consumption in other European Community countries. The change in existing patterns of trade is therefore likely to be small.

Mr. Parry

asked the Minister of Agriculture, Fisheries and Food, what analysis he has made of the effect of the proposed closure of the Tate and Lyle Liverpool refinery on the following industries: brewing, chocolate, sweets and confectionery and cakes and biscuits; and if he will make a statement.

Mr. Peter Walker

The United Kingdom is well supplied with sugar. Even with the closure of the Liverpool refinery imports of raw cane sugar and home production of sugar from beet will each meet nearly half of our needs. The remaining small amount required by our market is imported from other European Community countries although Tate and Lyle's sales to its customers are a commercial matter I understand that the company will remain national suppliers, and that its distribution facilities will be redeployed to provide an effective service to customers previously supplied from the Liverpool refinery.

Mr. Teddy Taylor

asked the Minister of Agriculture, Fisheries and Food what estimate he has made of the production capacity for refining cane sugar which will be available in the European Economic Community in the event of the Tate and Lyle refinery in Liverpool ceasing production; and if he will make a statement.

Mr. Peter Walker

Even after the closure of its Liverpool refinery Tate and Lyle's capacity could be about 1.1 million tonnes. Pure cane refineries, which already take some ACP sugar, exist in France and cane sugar can also be refined in beet factories, as it is in the Republic of Ireland. Tate and Lyle have said it hopes to have all the sugar it at present contracts for refined within the Community, and I can see no reason why this should not be possible. The Community commitment to puchase and import specified quantities of ACP sugar remains unchanged.