HC Deb 05 May 1982 vol 23 cc93-4W
Mr. Peter Mills

asked the Minister of Agriculture, Fisheries and Food what was the outcome of the Council of Agriculture Ministers meeting in Luxembourg on 28 to 30 April; and if he will make a statement.

Mr. Peter Walker

The discussions took place on proposals made by the Presidency on a number of major aspects of the 1982–83 price fixing where there were substantial disagreements.

For milk, we secured a ½ per cent. reduction in the coresponsibility levy, which will save United Kingdom producers some £10 million per annum.

The Commission's proposal to reduce the basic rate of coresponsibility levy in favour of small producers has been dropped as a result of our strong opposition supported by Denmark and the Netherlands. Instead, a sum of 120 MECU will be distributed among member States to be made available to small milk producers on a basis to be agreed between the member State and the Commission. This means that we have been wholly successful in our demand that there should be no changes in the market regime that discriminate according to the size of the producer.

Considerable progress was made towards a major reform of the wine regime, including obligatory early season distillation at a low price in years of heavy surplus.

The Presidency proposals recommended revaluations of the green currencies of Germany and Holland but no revaluation of the green pound.

So far, therefore, in the negotiations to date we have succeeded in retaining our butter subsidy virtually unchanged, in improving school milk arrangements, in retaining the variable beef premium scheme, in rejecting the Commission's proposals for a 4.4 per cent. revaluation of the green pound, and in obtaining a reduction in the coresponsibility levy.

The proposals under discussion in the main retain the Commission's compromise proposals on prices submitted on 1 April, apart from a further 1 per cent. on minimum quality breadmaking wheat and an extra ½ per cent. for other cereals, rape seed and sugar.

There was no other overall agreement at the meeting. In addition to specific reserves on parts of the package the United Kingdom retained an overall reserve until the implications for the Community budget are made clear and until there is agreement on other aspects of the 30 May mandate. Greece also maintained a total reserve and Ireland and Italy retained a number of specific reserves.

The marketing years for the commodities immediately affected were extended until mid-night on 16 May.

The Council will be meeting again on the 10–11 May to continue the negotiations.