Examination of Witnesses (Questions 480
- 494)
WEDNESDAY 5 DECEMBER 2007
Ms Kirsten Holm Svendsen
Q480 Chairman:
They need it.
Ms Svendsen: They need support to have any agriculture
at all but that is another discussion altogether as to whether
they should have that support. (The answer continued off the record)
Q481 Chairman:
Let us be brutally frank here. Do you see any change in the traditional
approach of the southern European countries on trade liberalisation?
Ms Svendsen: (The answer was given off the record)
Q482 Lord Plumb:
Following what you have been saying on 2013 onwards, let us assume
at that stage everybody accepts what you have said, that we are
in the final stages perhaps of removing direct support on commodities.
One of the reasons for commodity support, which has not been mentioned
now and it rarely is, is that over the years where there has been
commodity support country-by-country it has been there to try
to create stability.
Ms Svendsen: Yes.
Q483 Lord Plumb:
If we lose that entirely, and are we not witnessing a situation
at the moment where grain prices are nearly three times bigger
than they were this time last year, if we are going to face that
in 2013 onwards, should there not be still some sort of safety
net at a low level which is at least going to protect not just
the farmer but the industry from those fluctuations, because the
fluctuations are not just farming fluctuations, they are consumer
fluctuations, and the retailer will say, of course, "Okay,
we are now getting the commodity very cheap but if we pass that
to the consumer we can't get the price up again" and vice
versa? Do you not see ahead a problem here? I have to say I have
lived long enough to live through a lot of changes in agriculture
policy over the years.
Ms Svendsen: I cannot answer that question in
an official capacity because I do not think we have a firm position
on that point but I see what you are getting at. I would say that
maybe my government's position at the moment would be fluctuation
is part of the market economy. That would be the liberal answer
to that. Once the consumers and the voters see what the consequence
of this policy is there might be a little bit of softening. This
is a purely personal view. I would not be able to say what my
government's position would be.
Q484 Lord Plumb:
I think I asked the question on a personal basis.
Ms Svendsen: It is impossible to answer because
the policy does not go that far. Of course there will be fluctuations
and you will see people taking out the Treaty and saying the Common
Agricultural Policy is made for having stable supplies to the
people of the European Union and maybe we could have a debate
on that because we have never seen a debate on the Common Agricultural
Policy in any way when we have talked about Treaty reforms, it
has never been an issue because it is too sensitive. Maybe there
will come a time when we can have a fundamental debate about what
the Common Agricultural Policy is all about. Maybe that would
be a good thing and also for people to understand that bacon does
not come from an animal called Danish but people are producing
it. Maybe we should welcome that.
Q485 Lord Plumb:
You will keep that commodity going through quality, there is no
doubt about that, everywhere you go in the world that is so. Since
my son learned his farming in Denmark I have to say that.
Ms Svendsen: Oh, I see.
Chairman: A nice, easy one to finish
off on the Budget Review.
Q486 Earl of Dundee:
What are Denmark's future priorities for agriculture and also
its prescription to EU policy after 2013?
Ms Svendsen: Maybe I should start by looking
back and say that normally agriculture is not a priority when
we are talking budgets, not at all, it is not a priority.
Q487 Earl of Dundee:
It may not be a priority now but how about in the future if you
were to conceive of future priorities?
Ms Svendsen: As things are at the moment it
is very hard for me to see that our governments would put agriculture
at the head of a list of priorities when they are talking about
the budget. It is difficult to say anything about that because
our government has just been re-elected and we take a maximum
of three priorities along to the negotiating table in Brussels
and I have never seen agriculture on that list and I do not think
I will see it in this government's time.
Q488 Earl of Dundee:
Do you think that direct support payments should continue?
Ms Svendsen: No.
Q489 Earl of Dundee:
You do not, but what is your comment on the other direction, which
is that farmers be rewarded for their provision of public benefits
for which there is no market?
Ms Svendsen: That is one of the lines that could
be pursued with the Common Agricultural Policy and that could
be a part of the policy formulation that is on the table right
now. As I have said before, not just the scope of producing public
benefit in the way of the environment or quality, whatever, but
also there would be a very large emphasis on research and innovation
in our policy here. We would want to spend more money on becoming
more innovative and more efficient in our production because that
is necessary for a country of our size.
Q490 Lord Cameron of Dillington:
If agriculture does not feature as a priority in your Budget Review,
what are your priorities in terms of the budget?
Ms Svendsen: The last time our main priority
was research.
Q491 Lord Cameron of Dillington:
That is general research?
Ms Svendsen: General research, yes, but that
also spills over into agricultural policy because that is basically
what makes our economy competitive in the global economy. As a
small country we have to be very innovative and spend a lot on
research otherwise they might as well make it and produce it in
China or Brazil. We have nothing to offer if we cannot do it a
bit better or a bit earlier than everybody else and that is the
thinking behind our whole attitude towards the Common Agricultural
Policy and also in the Budget Review.
Q492 Earl of Dundee:
What is the position with forestry just now in Denmark and is
there a policy on integration between farming and forestry?
Ms Svendsen: I cannot say because forestry is
not an agricultural issue, it is an environmental issue. Forestry
is not a big industry.
Q493 Earl of Dundee:
No, but even so there will be small Danish farmers who have trees.
Ms Svendsen: They do, yes, but they do not see
it as a money generator. The only industry that really does very
well is Christmas trees. We do not do timber or anything like
that.
Q494 Chairman:
Recreational forestry?
Ms Svendsen: Recreational forestry and Christmas
trees, so this is the season.
Chairman: On that festive note, thank
you very much indeed.
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