HC Deb 17 May 1984 vol 60 cc261-4W
Mr. Murphy

asked the Minister of Agriculture, Fisheries and Food if he will list the main policy achievements of his Department since May 1979.

Mr. Jopling

Further to the answer given to my hon. Friend on 3 May 1983 my Department has been responsible for, and played its part in, the following achievements.

At this year's price fixing in the European Community, we have taken a major step towards reform of the CAP and making it more responsive to market forces. For the first time, an overall reduction in common prices was agreed and a quota has effectively been imposed on milk production. This will reduce expenditure on the CAP very significantly compared to what would otherwise have been the case.

The Community has, as we had advocated, committed itself to the introduction of guaranteed thresholds for all products in, or likely to be in, structural surplus.

The agreement reached represents a significant step towards controlling the growth of surpluses and the spiralling costs of the CAP. Nevertheless it is likely to be very difficult to keep within the 1984 budget provision for the CAP. For this reason, we made it clear in the Council that we expected the Commission to look for savings later in the year to keep CAP spending within the budgeted figure.

We resisted a proposal to revalue the green pound, since this would have placed British farmers at a disadvantage. Changes were introduced to the rules for monetary compensatory amounts which fully recognise the special status of sterling as a floating currency.

We obtained the Council's agreement to the continuation of the beef variable premium scheme for a further year, at a slightly reduced rate. The scheme guarantees prices to farmers and helps to keep retail prices down thereby encouraging consumption.

We also persuaded the Council to agree to an extension of the less favoured areas in the United Kingdom. This will allow extra help to be given to some 28,000 farms on roughly 3 million acres of marginal land.

On the home front we have provided additional assistance in a variety of forms including a doubling of the suckler cow subsidy in Great Britain and raising the guaranteed price for wool by 5p per kilo.

We completed a review of liquid milk prices and the maximum retail price will be raised by 1p a pint from 3 June. This will be the first increase since November 1982 and represents an annual increase of only 3.1 per cent. The determinations flowing from the review also provided for a parallel increase in the maximum wholesale price and, after comparison with the rate of return in comparable groups of food manufacturing and retail companies, for an appropriate increase in the dairy trade's target rate of profit. At the same time, we concluded that, with the opening of our market to competition from imports of milk, there is no longer the same case for a system of price controls to protect the consumer. Along with colleagues in Northern Ireland and Wales, I shall therefore be consulting interested parties with a view to decontrolling liquid milk prices by the end of 1985 at the latest.

The Government have also reviewed the financing of the potato support arrangements in Great Britain in consultation with the potato marketing board and the farmers unions. Agreement has been reached on new cost sharing and guarantee arrangements which will put the PMB on a sound financial basis for the future; promote the commercial competitiveness of the potato sector; encourage greater marketing awareness amongst producers and reduce the Government share of potato market stabilisation costs. Proposals to give effect to these revised financial arrangements were put to producers in March and, subject to completing the necessary procedures, are expected to be implemented in the autumn.

We have continued to support improvements throughout the industry both by direct grant and EC funds. specific schemes have included livestock markets, glasshouse heating and pigmeat processing.

Model byelaws have been published and these will give local authorities greater control over careless straw and stubble burning.

An important package of measures was unveiled with the publication of the Agricultural Holding Bill which is intended to stimulate the tenanted sector and remedy various shortcomings in the working of the existing legislation in England and Wales. We have also introduced proposals to amend and clarify legislation in connection with the welfare and health of livestock.

Since May 1979 up to March of this year the average annual increase in the food prices index has, at 7.9 per cent. been below the increase in the all-item retail price index of 10.3 per cent.

Expenditure on food research has almost doubled over the past three years. This gives support to the introduction of new technology which, coupled with investment, is of vital importance to the food industry.

Food from Britain completed its first year of operation in March and is now implementing a programme of activities endorsed by the food and agriculture industries which aims to improve the quality of home produced foodstuffs and present them more effectively to the consumer.

In April FFB launched its export prospectus, providing a wide range of services for food exporters in key overseas markets.

We have instigated a further review of food legislation and amended the law controlling the sale of food unfit for human consumption.

Conservation

We are among the leaders in Europe in building into our farm structures legislation the reqiuirement for compatibility between agriculture and conservation. Under our capital grant scheme we already go further than the present Community structures directives require in assisting conservation measures related to agricultural investment. In the current review of the EC farm structure directives, we will be seeking to amend the regulations in a way which will make clear the considerable scope for assisting conservation.

We have announced extra grants for hedges, shelter belts and traditional walls in the less favoured areas; and ended the last vestiges of grant aid for hedge removals.

We have given the agricultural development and advisory service a substanial shift of emphasis towards the encouragement and promotion of conservation among farmers and Ministry officers are supporting the farm and wildlife advisory groups which are now established in every county in England and Wales.

Our fundamental aim is to promote positive attitudes which will lead to practical measures of conservation on the farm.

British Fishing

We have consolidated the common fisheries policy with a series of decisions including a satisfactory agreement on the percentage allocations of North Sea herring among member states.

e have implemented the Community structures package through the Fishing Vessels (Financial Assistance) Scheme 1983 which provides grants for decommissioning and laying up vessels, exploratory voyages and joint ventures — together with aids for building and modernising vessels. These measures will enable the fleet to adapt to the future fishing opportunities open to it. Up to £85 million has been made available to finance these schemes from both EC and national funds.

To conserve stocks we have introduced a system of restrictive licensing for certain fish stocks when national quotas may be expected to be fully taken up by the national fleet. In addition important progress has been made in improved enforcement of the common fisheries policy by the appointment of a team of Community inspectors and agreement on the form of Community log books and landing declarations.

Staff

We have carried out these policies while reducing the Ministry staff by 2,470 since May 1979.