HL Deb 20 July 1989 vol 510 cc1030-2WA
Lord Stanley of Alderley

asked Her Majesty's Government:

Whether they will announce their conclusions following the consultation exercise on potato market policy in Great Britain after 30th June 1990.

Baroness Trumpington

My right honourable friend the Minister and the Secretaries of State for Scotland and Wales have received a wide range of representations. A number of growers, supported by the processing industry and the multiple retailers, favour a free market (option (i) in the consultation paper). The majority of growers wish to retain the essentials of the present potato marketing scheme but accept the need for non-producer interests to be represented (option (iii)). There was no support for option (ii)—retention of the scheme but: without the board's basic area and quota powers.

My colleagues and I have decided that we would propose to retain the basic elements of the existing potato marketing scheme in view of the need to maintain stability in the potato industry at a time of major adjustment in the arable crop sector generally. This is subject, however, to review in the longer term, and on condition that the following changes are made to the existing arrangements.

First, we believe it is essential to ensure that consumers and other non-producer interests are given a greater influence in market management decisions. I have therefore invited the board to enter into discussions with other interests with a view to proposing modifications to the present scheme along the lines of option (iii).

Second, it remains the Government's intention to abolish the guarantee arrangements as soon as parliamentary time permits. But in the meantime we shall be seeking substantial changes to the financial agreement between the Government and the board. We shall therefore be discussing with the board and the farmers' unions—as required under the Agriculture Acts 1947 and 1957:—

  1. (i) A significant revision of the formula for allocating intervention costs with a view to enabling the industry to accept financial responsibility for its own affairs.
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  2. (ii) A switch from pre-season contracts to direct intervention with a view to rendering intervention more cost-effective and strengthening the board's reserves.
  3. (iii) Eliminating of the Government's contribution to the board's administrative costs.
We aim to reach final conclusions on these matters by the end of September.