HC Deb 29 February 1984 vol 55 cc195-6W
Mrs. Roe

asked the Minister of Agriculture, Fisheries and Food if he will make a statement on the progress of the review of potato support arrangements.

Mr. MacGregor

Following yesterday's decisions by the Potato Marketing Board, I can inform the House that the Government have reviewed the financing of potato support arrangements with the board and the farmers unions and have agreed the basis on which the costs of market support in Great Britain will be divided with effect from the 1985 season. Discussions are continuing in respect of arrangements in Northern Ireland.

In revising the cost sharing arrangements in Great Britain, the Government's aims have been to put the Potato Marketing Board on to a sound financial basis for the future; to promote the commercial competitiveness of the potato sector; to encourage greater marketing awareness amongst producers; and to place on producers responsibility for meeting the costs of potato market support in years of average surplus. The Government will continue to contribute to market support costs when exceptional surpluses arise, but will seek Parliamentary approval to the ending of the present system of deficiency payments.

In the longer term, the Government envisage that the cost to public funds of potato market support will be substantially less than in recent years. The Government have, however, agreed certain short-term measures to help the Potato Marketing Board build up its financial reserves for the future. The new arrangements will be reviewed after five years, but meanwhile the Government will stand ready to meet any shortfall in producer funding of market support, should the situation arise during that time. Moreover, in recognition of the fact that the Potato Marketing Board cannot increase its income from producers before 1985, the Government will make the necessary provision to allow the board to meet any support buying obligations which may arise in the 1984 season.

I am pleased to say that the Potato Marketing Board and the famers unions have agreed to recommend acceptance of the new arrangements to producers, and the board has indicated its intention to publish its proposals to amend the potato marketing scheme in early March.