APPENDIX 9
Memorandum submitted by the East of England
Development Agency
The sugar beet growing and processing industry
is important to the economy of the UK. It is estimated that some
23,000 people are employed in the industry and many of these jobs
tend to be located in the more remote rural areas. The economies
of these areas are already under pressure as a result of the crisis
in farming, and a range of other factors well set out in the recent
Rural White Paper.
It is also estimated that some 9,000 farm holdings
include sugar beet as part of their crop rotation. Despite the
fact that sugar beet prices have fallen by about 30 per cent over
the past three years, mainly as a result of the relative strength
of sterling against the euro, it is the sugar beet crop that is
keeping many small and medium sized farms viable. The importance
of the sugar beet crop to the agricultural industry in some parts
of the country therefore must not be underestimated.
The six counties of the East of England contain
60 per cent of the UK sugar beet crop area and over 50 per cent
of the UK beet growers. Local haulage contractors, and many of
the seed, fertiliser, agrochemical and machinery support industries
for the whole UK beet industry together with four major beet processing
factories, a retail packaging unit and three R&D centres of
excellence are all to be found in the region. The sugar beet industry
and supply chain businesses are therefore of significant importance
to the economy, and particularly the rural economy, of the East
of England.
The proposal to allow tariff and duty free access
to the UK market by the 48 least developed countries (the EBA
initiative) could result in a sugar quota reduction of up to 40
per cent. A reduction of this magnitude could seriously undermine
the economics of sugar beet production and processing in the UK
with the consequent threat to many of the jobs in this sector.
The proposal could also impact adversely on those African, Caribbean
and Pacific countries that currently export sugar to the EU. The
EBA initiative together with the review of the EU sugar regime
will have significant implications for the whole of the sugar
industry. In view of the concentration of the sugar industry activities,
the impact in the East of England is likely to be particularly
severe.
These are complex and inter-related issues and
it is therefore important that the committees should consider
the whole range of issues together. It is also important that
adequate time is allowed for detailed consultation to enable all
the issues to be thoroughly investigated and understood. The potential
impact of the proposals should also be carefully assessed. These
points are important in order to minimise the risk of irreversible
damage to a vulnerable industry. When decisions are made, an adequate
timescale for implementation should be allowed to enable the whole
industry to adjust to the changes. Individual businesses, too,
will need help and support during the period of change and the
contribution the England Rural Development Programme can play
to facilitate this process should be explored.
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