HC Deb 24 October 1984 vol 65 cc642-4W
Mr. Nicholls

asked the Minister of Agriculture, Fisheries and Food what was the outcome of the Council of Agriculture Ministers' meeting held on 22 and 23 October; and if he will make a statement.

Mr. Jopling

With my hon. Friend the Minister of State I represented the United Kingdom at the Council of Agriculture Ministers in Luxembourg on 22–23 October.

I expressed our deep concern that the Commission had rushed through proposals for export sales of butter at very low prices. I said that this measure raised important issues because the markets able to take such large quantities of butter were limited and because of the budgetary implications.

These should first have been considered at a political level. The measure also appeared difficult to reconcile with the Community's obligations in GATT and threatened to damage the Community's credibility with its trading partners. There was considerable support for our views in the Council. The Commisssioner insisted that the decisions taken, which include the provision for a special sale of butter on the Community market, are within the Commission's powers through Management Committee procedures.

On the milk supplementary levy, I stressed once again that it is essential for all member states to implement the levy system promptly and fairly in accordance with the agreed rules. I urged the Commissioner to ensure that this was done. The Commissioner accepted that there must be no weakening in the application of the supplementary levy.

I also pressed the Commission to bring forward urgently proposals to provide the flexibility needed for dealing with the problems of producers with mixed wholesale and direct sale businesses. The Commissioner undertook to consider this along with a number of other points on the implementation of the system raised by other member states.

The Council agreed on a consumption subsidy for olive oil of £30.81 per 100 kg for the 1984–85 marketing year. It also agreed that the Commission should be given greater power to adjust this subsidy in the course of the year if the prices for competing vegetable oils diverge markedly from the forecasts on which the Council took its decision.

The Council had a further detailed discussion on ways of reforming the wine regime to tackle the surpluses and the escalating costs in this sector. No agreement was possible and the Presidency will be considering how further negotiations on this issue should be handled.

The Council agreed on a further extension in the present structures measures until 31 December to provide more time for the negotiation of the new arrangements. I was supported by the French Minister in pressing for account to be taken in the final agreement of the importance of conservation in relation to agricultural developments.

I urged the Commission to take action to investigate fully the action taken by the Dutch Government in allowing glasshouse producers gas at a lower price than industrial users. I said that this appeared to conflict with the agreement entered into with the Commission. The Commission assured the Council that they were investigating the position and had sought further information urgently from the Dutch authorities.