HC Deb 12 January 1995 vol 252 cc206-7W
Mr. Austin Mitchell

To ask the Minister of Agriculture, Fisheries and Food if further steps were taken to facilitate continuing access to the United Kingdom market for New Zealand(a) butter and (b) cheese after renegotiation of the conditions of United Kingdom entry into the EEC; what was (1) United Kingdom output of butter and the tonnage of imports and exports from and to (2) New Zealand, (3) the EEC Six, (4) Denmark, (5) the Irish Republic and (6) other countries and what was (i) the corresponding information for the EEC Six, (ii) the tonnage of EEC cheese dumped on world markets, (iii) the difference between the common agricultural policy price and the New Zealand export price to third markets and (iv) the cost of cheese support of all kinds to the taxpayer or consumer in (w) 1968, (x) 1979, (y) 1989, and (z) 1994 to date.

Mr. Jack

The United Kingdom's treaty of accession provided for the import of declining quantities of butter and cheese from New Zealand at reduced rates of import levy for the years 1973 to 1977 with the possibility, for butter but not for cheese, of continuation beyond that date. The arrangements for butter have been prolonged up to the present, by successive unanimous Community decisions relating to quantity and rate of levy. The imports of cheese were terminated at the end of 1977 in accordance with the treaty but new arrangements were made with effect from 1 January 1980 for the import of certain quantities on special terms.

As a result of the GATT Uruguay round agreement, both arrangements are to be put on a permanent basis from 1 July 1995. The annual quantity of butter from New Zealand will be raised from its present level to 76,667 tonnes at a tariff of 86.88 ecu/100 kg, and the annual quantity of cheese will be maintained at 9,500 tonnes at tariff of 17.06 ecu/100 kg.

Information concerning United Kingdom production of butter for years 1979 and 1989 is available from "Agriculture in the United Kingdom". Data for 1968 are not available on the same basis and estimates for 1994 are not yet available. Detailed information on imports to the United Kingdom and exports to particular countries for the years requested can be provided only at disproportionate cost. Trade information is published in the annual statement of trade of the United Kingdom 1968, Customs and Excise; DTI "Business Monitor" "Overseas Trade Statistics of the United Kingdom" 1979; CSO Business Monitor, "MA20 1989; and CSO Business Monitors", MM20 and MQ20 June 1994.

Information on the production of butter in EU member states for 1979,1989 and 1992—latest— is published in "The Agricultural Situation in the Community"— Commission of the European Communities— and for 1968 can be found in the FAO production yearbook for 1970. Imports and exports of butter by EU member states are published by Eurostat. The publications contain total volumes of cheese exported to third countries. A small quantity of cheese which does not receive an export refund will be included.

There is no common agricultural policy price for cheese in the EU and information on New Zealand export prices of cheese to third countries is not readily available.

Cheese is supported under the Community dairy regime through export refunds private storage aid for certain long keeping cheese and, until 1 August 1994, public intervention in Italy for two types of cheese. It is not possible to estimate the costs of cheese support to consumers and taxpayers without making a large number of hypothetical assumptions about alternative policies which would have obtained in the absence of the CAP, and the effects of those policies. However, EU budgetary expenditure under the CAP in respect of cheese is as follows:

Year Mecu
1968 n/a
1979 17
1989 596
1993 800

The applicable conversion rates into sterling are 1979: 0 64924, 1989: 0.65475, 1993: 0.78627.

Source:

FEOGA.