Skip to main content

Sugar

Volume 892: debated on Tuesday 13 May 1975

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Minister of Agriculture, Fisheries and Food if he will make a statement about the future level of United Kingdom sugar prices.

Since last November the three United Kingdom sugar refining companies have voluntarily operated a price equalisation scheme in such a way that the price of raw sugar imported from the Commonwealth, which forms the greater part of our total supplies, is offset by the lower prices of our own beet sugar and of sugar imported from the world market under the EEC subsidy arrangements.Commonwealth sugar is now being supplied under the agreement between the ACP countries and the Community., which forms part of the Lomé Convention. The Community has guaranteed a basic price for this sugar. But, as I told the House in a statement on 21st November—[Vol. 881, c. 1537.]—the EEC Council of Ministers accepted that a higher price would initially have to be paid; and agreed that, if necessary, State guarantees could be given to the buyers. I announced on 3rd February—[Vol. 885, c. 940.]—that the Government had accordingly guaranteed a price of £260 per ton for ACP sugar shipped to the United Kingdom in 1975, and this has been taken into account in setting the level of the equalised price.Sugar from other sources is available to the United Kingdom market at prices below the present equalised price for forward delivery, particularly from October onwards when supplies from this year's beet crops will become available.

Recognising that many buyers of sugar need to contract for their supplies well in advance and that the United Kingdom refiners must be in a position to sell their sugar competitively with other suppliers to the United Kingdom market, the Government have decided to introduce a system of forward quotations of the equalised price, which will initially relate to deliveries of United Kingdom refined sugar in October, November and December. Consideration is also being given to the most effective means of maintaining the competitiveness of this sugar in the period up to October.

Sales at prices which will have entailed a loss for the buyers of Commonwealth sugar shipped in 1975 will mean that the guarantee to which I have referred will have to be implemented by Exchequer payments. These payments will rest on the authority of the Estimates and the confirming Appropriation Act. A Supplementary Estimate will be presented in due course, and meanwhile recourse will be had to the Contingencies Fund. The advances to the Sugar Board in respect of the export of sugar-containing goods, which I announced in the House on 18th April—[Vol. 890, c. 188–9.]—will now be included as payments under these arrangements.