§ Mr. MarlandTo ask the Minister of Agriculture, Fisheries and Food what was the outcome of the Agriculture Council on 6–7 March in Brussels; and if he will make a statement.
§ Mr. MacGregorThe main business before the Council, at which I represented the Government, consisted of the Commission's proposals for agricultural prices and other aspects of the farm support system for 1989–90. There was extensive discussion, but no agreement was reached. In the main, I supported the Commission's proposals, while pressing points of particular importance for our farmers, including an appropriate devaluation of the green pound.
The meeting also discussed a proposal to make payments to farmers specifically to encourage them to diversify into certain non-surplus products. Along with several other Ministers I objected to some aspects of the proposal because of the risk that established producers of non-surplus products could be unfairly affected by subsidised competition. I was particularly concerned about the impact on our soft fruit growers and horticultural businesses producing plants and flowers. I was able to secure sufficient support to prevent these sectors from being included in the list of sectors eligible for subsidised competition, and the president decided therefore to remit the proposal for further study. It could otherwise have been accepted with the exclusion of those products at the Council. We shall return to the issues at a subsequent Council.
The Commission again urged, with our support, that a decision be taken on future arrangements for imports of butter and sheepmeat from New Zealand but several member states were still unwilling to reach a decision for the time being. The matter will be discussed again at the Council beginning on 20 March.
Finally, the Council had a first reading of proposals from the Commission which it entitled an action programme for forestry. These will likewise be discussed further at a later date.