HC Deb 09 March 1989 vol 148 cc616-9W
Mr. Heddle

To ask the Minister of Agriculture, Fisheries and Food what have been the principal achievements of his Department since 1987.

Mr. MacGregor

My Department has been in the forefront of efforts to achieve further progress in reforming the CAP, the arrangements embodied in the February 1988 European Council agreement being the most significant step taken so far. This introduced for the first time a legally binding ceiling on CAP market support expenditure; and limited its growth to about 2 per cent. in real terms between 1988 and 1992 compared to 10 per cent. a year over the previous four years. Stabilisers are now in place for most CAP commodities, and these are backed up by practical measures to strengthen financial control. Community spending on agricultural market support has been kept under control. Both the outturn for 1988 and the budget for 1989 are well within the financial guideline.

The 1988 price-fixing settlement built on this progress. The negotiations demonstrated clearly the impact of the new rules on budget discipline, and the final settlement respected the expenditure ceiling for 1989 and 1990. At the same time, the Government continued to press United Kingdom farm interests and achieved a devaluation of the green pound worth about £120 million on farm incomes in a full year.

Since 1987, the much criticised EC surpluses in most major commodities, as demonstrated by intervention stocks, have fallen significantly. Stocks of butter have fallen 88 per cent. since the end of 1987. Cereals stocks are down about 40 per cent. since August 1987. Skimmed milk powder stocks, which were nearly 800,000 tonnes in 1987, are now virtually non-existent.

We have reached agreement in the European Community on new support arrangements for beef which significantly reduce the role of intervention and its cost, leave the market more responsive to supply and demand and provide direct payments to beef producers.

To complement the policy of price restraint and increased market orientation, the Government have introduced a range of schemes designed to achieve a better balance between agricultural production and the environment, encourage farm diversification and alternative land use, and encourage farming practices that are beneficial to the landscape and to the conservation of wildlife.

The introduction in 1988 of a set-aside scheme provided incentives for the reduction of surplus cereal production, while keeping the land set aside in good heart.

Following the passage of the Farm Land and Rural Development Act 1988, the Government introduced the farm woodland scheme 1988 which is designed to encourage planting of trees on land previously in agricultural production and which has already got off to an encouraging start. Grants for enterprise feasibility studies and marketing costs of diversified enterprises were introduced in August 1988. These complement the capital grants for farm diversification introduced on 1 January 1988.

The farm and conservation grants scheme was introduced in February 1989. This targets assistance on investments to prevent water pollution by farm operations and to enhance the conservation of the countryside. The lowland grant rate of 50 per cent. for waste treatment and disposal facilities is the highest level ever offered in those areas and is also the best rate of grant available anywhere in the Community. Extra help is also provided for horticulture. Prompt action was taken to assist farmers and growers adversely affected by the great storm of 16 October 1987 through extra grants for the replanting of orchard trees and replacement of damaged hedges and walls.

We have established 10 environmentally sensitive areas in England. The scheme, which is voluntary, encourages environmentally beneficial agricultural practices. Over 300,000 hectares of land are within environmentally sensitive areas. This represents a considerable commitment to helping to protect some of the most beautiful parts of the country.

We have taken further measures for the safe application of pesticides by requiring certification of certain groups of operators. Statutory controls to limit pesticide residues in crops and food have been introduced. Measures have been taken to ensure that farmers limit pesticides to approved uses only and clear guidance has been issued on disposal of surplus pesticides.

The Government have engaged in extensive consultations with industry and consumers as a part of our major review of existing primary food legislation and hope to bring this forward as soon as the parliamentary timetable permits.

We have strengthened the science base for consumers' protection by building up a comprehensive food monitoring and investigative system under the auspices of the steering group on food surveillance. The objective is to provide a basis for regulation and advice to consumers.

In July 1987 the Government issued guidelines on nutrition labelling of foods which aim to standardise the presentation of nutritional information. This is helping consumers to achieve a balanced diet by enabling them to compare food more easily.

The United Kingdom has taken an active role in negotiating Community directives which form part of the single market food law harmonisation programme and which will remove barriers to trade and benefit both consumers and industry. Last year agreement was reached on nine Community directives including the five important framework directives on food additives, materials and articles in contact with food, foods for particular nutritional uses and the official inspection of foodstuffs.

The Government have enacted about 30 food law measures and proposals have been issued for consultation on a further 10 measures including draft regulations on soft drinks, fish products and fat spread products, and amendments to the Food Labelling Regulations to introduce alcoholic strength marking and restriction on the use of the term "low alcohol".

As soon as it became clear that there was a problem with salmonella enteritidis in eggs, the Government acted immediately to tackle the problems at every point in the production chain, from feed production through breeders, hatcheries and laying flocks to the food distribution industry and consumers.

A working party was set up under the chairmanship of Sir Richard Southwood to look at all aspects of the new cattle disease called bovine spongiform encephalopathy. The Government took prompt action in imposing a feed ban to cut off the most likely source of disease to cattle, and responded quickly to the working party's interim recommendations to slaughter affected animals and destroy the carcases and milk from them. The working party's full report, which was published on 27 February, welcomed the Government's prompt action.

The United Kingdom has been successful—along with Denmark—in achieving Community recognition of its higher (step 2) hygiene status under the EC heat-treated milk directive.

In the animal welfare area we have banned veal crates, made new legislation on battery hens and poultry transport, and produced new on-farm codes for seven species.

Following sustained United Kingdom pressure, the Council of Agriculture Ministers reached agreement in December 1988 on a new regulation defining spirits, which will greatly strengthen the competitive position of the United Kingdom drink industry.

Increased Government funding for the construction and improvement of flood and coastal defences, was announced in the Chancellor's Autumn Statement 1988.

For water authorities, £15.9 million of extra grant will be made available over the next three financial years, increasing Government support in this sector by 1991–92 to nearly £25 million annually. In addition the grant-aided capital programme of local authority flood and sea defence work is being increased over the same period by £8.8 million, increasing the Government funded programme by 1991–92 to £11 million.

Updated guidance to drainage authorities on their environmental responsibilities was issued and regulations were made to implement the EC environmental assessment directive regarding flood defence improvement work.

During 1988, the Government secured improvements in the EC fish conservation, marketing and control regimes, including improved measures to protect juvenile mackerel and plaice and provision for carry-over premium for herring and mackerel. We also secured a satisfactory settlement of the 1989 catch quota including the right to take some of our western mackerel quota east of 4 west and a 1989 North sea haddock quota which took account of our special claims under The Hague preference. We have announced new national measures to improve the conservation of bass stocks.

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