Beef (Hansard, 11 February 1987)

§ Mr. McQuarrie
asked the Minister of Agriculture, Fisheries and Food if he will ensure that any surplus beef which may be produced following the period of the EEC milk package does not go into intervention; and what plans he has for the disposal of the surplus.

§ Mr. Gummer
I shall reply to my hon. Friend as soon as possible.

§ Mr. McQuarrie
asked the Minister of Agriculture, Fisheries and Food if, in view of the 13 per cent. reduction on the intervention price of beef on 6 April, he will press the other member states in the EEC for a substantial reduction in the green pound before that date.

§ Mr. Jopling
The reform to the beef regime agreed at the December Agriculture Council provide for reduced reliance on intervention and greater reliance on production premia as a means of supporting the beef sector. Intervention prices will, in future, more closely reflect market price levels. But in the United Kingdom it is the beef variable premium scheme, rather than intervention, which provides the main means of production support and we have secured continuation of the scheme until the end of 1988. In addition, our producers have already had their support level improved288W as a result of the 6 per cent. devaluation of the green rate for beef and will benefit from adjustments to harmonise steer and bull intervention prices.
I am considering the question of the future level of the green pound in the context of the forthcoming price fixing.

§ Mr. McQuarrie
asked the Minister of Agriculture, Fisheries and Food if he has any plans to prevent further agricultural products from being placed into storage, particularly in the beef sector.

§ Mr. Jopling
The Government generally believe that intervention arrangements applicable to the various EC commodity regimes should operate as a buyer of last resort and not as a normal sales outlet.
I am pleased that the decisions taken at the December Agriculture Council on reforms to the beef regime represent progress in this direction, and place less emphasis on intervention as a means of underpinning producers' returns.