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Mr. A. J. Beith (Berwick-upon-Tweed): Has my right hon. Friend noted today's press release about chicken imports from Thailand? It says that EU inspectors approved a number of chicken factories there without
visiting them, and that the potential use of antibiotics in Thailand is not regulated, known about or exposed to our consumers.
Mr. Kennedy: I am grateful to my right hon. Friend for that. I read those reports this morning. Given that this party supports the Government when they are positively engaged in Europe, we should use that positive engagement to insist that such ludicrous states of affairs are not allowed to be maintained. I could not agree with my right hon. Friend more.
This is a short debate and I am anxious that as many hon. Members as possible from all parties can contribute. I wish to deal with two other issues. The first is that of genetically modified products, which is capturing people's imagination and triggering anxiety--and rightly so.
The Government have inherited a series of contractual relationships and decisions from the previous Administration. That is understood. However, they must recognise that the GM issue goes much wider than the rights and wrongs of the issue itself. Scientific input is essential for any Administration. It would be highly irresponsible to suggest otherwise. Clearly, however, the Government are not carrying consumer confidence with them. It would therefore be best to opt for a five-year ban on the commercial exploitation of GM foods. The Government should recognise the extent of public opinion and the fact that they are not carrying public opinion with them on this issue. Ultimately, that will do more damage to the general credibility of agriculture and the food chain, which will benefit nobody, least of all farmers.
The second much broader issue is that of the single currency. I am glad that Britain in Europe campaign was launched last week and that it has a healthy degree of cross-party support, which is important. The Government must recognise, however, that there has been a significant change in grass-roots farming opinion on this matter. My view is based on discussions that I have had in the past couple of years. Because of the strength of the pound over the past period, the increasing perception among the agricultural community in this country is that a commitment on the part of this country to a single currency would be in the long-term interest of UK agriculture.
Mr. Christopher Gill (Ludlow):
Will the right hon. Gentleman give way on that point?
Mr. Kennedy:
I can hardly not give way to the hon. Gentleman on that issue, but may I finish this point first?
I appreciate that the Minister is constrained by the policy of the Chancellor, the Foreign Secretary and the Prime Minister, who from time to time seem to have the same policy on this issue. None the less, I hope that he will acknowledge that there will be real long-term benefits to British agriculture if we are coherently and sensibly part of a single trading currency zone within Europe.
Mr. Gill:
Does the right hon. Gentleman accept that many people, himself included, who should know better and probably do, know that the rate at which the United Kingdom would be permitted to join the single currency would be as laid down by the treaties? It would not be a figure plucked out of the air that would suit the British
Mr. Kennedy:
No one who has considered the issue sensibly would argue that the single currency is the panacea for all ills in the agricultural sector or elsewhere. Of course it is not. It is a technical as well as a political and a constitutional judgment. On balance, it brings merits and benefits and that is why I am in favour of it for agriculture, as for other things.
I would gently point out to the hon. Gentleman, as I do not necessarily concur with him but respect his views and the consistency with which they are argued, that equally if one is trying to take a balanced view of the problems afflicting agriculture, one must agree that they did not all begin on the stroke of midnight of 2 May 1997. Many of the endemic difficulties affecting countryside and rural issues predate the advent of this Administration by some considerable way and I am afraid to say that some of the guilty people are now sitting on the Opposition Front Bench and used to sit on the Government Front Bench. That is an important political point of which we must never lose sight.
On behalf of my right hon. and hon. Friends, I conclude by saying that, first, it is important that Parliament is seen today, here and now, to draw attention to the extent of the crisis. Secondly, it is important that all of us in all parties and all parts of the country reflect what we have heard from our constituents during the summer recess about the depth of the depression and the extent of the doom and gloom out there in the agricultural community.
The Minister of Agriculture, Fisheries and Food (Mr. Nick Brown):
I beg to move, To leave out from "House" to the end of the Question, and to add instead thereof:
These are important issues and it is right that we should debate them today. We are not quarrelling, I hope, about the facts. Certainly I have no quarrel about the key fact, which is that farm incomes have fallen dramatically in the past three years and now stand at one of the lowest levels for the past 25 years. The Government see helping farmers through the deep and enduring depression in farm incomes that they are experiencing as one of their priorities. There is no doubt that the whole industry, and the livestock sector in particular, is facing severe difficulties. We are still feeling the effects of the unavoidable implications of the BSE crisis. That runs not only through the beef sector, but throughout livestock.
Mr. Norman Baker (Lewes):
Will the right hon. Gentleman give way?
Mr. Brown:
I will first list the difficulties. I promise to give way to the hon. Gentleman when I come to the response to them.
The recession in the far east and the collapse of the Russian economy have increased pressures. While the strength of the pound, particularly in relation to the euro, to which the right hon. Member for Ross, Skye and Inverness, West referred, is a reflection of the strength of the wider UK economy, it makes agricultural exports more difficult, draws in imports and reduces the real value of support payments to farmers under the common agricultural policy.
Mr. Baker:
I welcome the right hon. Gentleman to the House this afternoon and thank him for the statement that he recently made about giving more money to the farmers. That has been very welcome to the farmers in my constituency. May I remind him that there are still major concerns among farmers and that they see the money as a sticking plaster rather than a long-term solution. He may be aware that I have written to his office to ask him to come to my constituency office to meet my farmers. Can he give me an assurance this afternoon that he can fit that into his diary?
"recognises the difficulties faced by agriculture and the wider rural economy as a result of the depressed level of farm incomes; approves of the special measures the Government has taken to assist the industry through three aid packages plus EU agri-monetary compensation worth in total £742 million; endorses the establishment of industry-led working groups to examine urgently the regulatory burdens on agriculture; supports the Government's promotion of collaborative working throughout the food chain to add value and generate the price premium that high-quality United Kingdom produce deserves, while noting that the Competition Commission's investigation of supermarket pricing includes an examination of trading practices throughout the supply chain; welcomes the Government's achievement of significant reform of the Common Agricultural Policy in the interests of producers, consumers and taxpayers; and fully supports the Government's commitment to the future of United Kingdom agriculture as a competitive, flexible and diverse industry, and the use of options available under Agenda 2000 to help secure this.".
20 Oct 1999 : Column 451
First, I offer my congratulations to the right hon. Member for Ross, Skye and Inverness, West (Mr. Kennedy) on his election to the leadership of his party. I also congratulate him on having selected a debate on food and farming for his debut in the House as leader of his party. I also pay tribute to him for the interest that he has taken in this subject in his time as the Liberal Democrat spokesman and for his constructive approach in what are difficult times for the sector. For completeness, I also welcome the hon. Member for South-East Cornwall (Mr. Breed) to his new Front-Bench responsibilities.
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