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Horticulturists (Energy Costs)

Volume 25: debated on Thursday 10 June 1982

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19.

asked the Minister of Agriculture, Fisheries and Food if he is satisfied that the solution reached to the problem of Dutch horticultural gas prices will provide fully equivalent energy costs to horticulturalists in all European Economic Community States.

I am satisfied that the agreement between the European Commission and the Dutch Government will achieve its aim of removing the distortion of competition in the glasshouse sector caused by the Dutch growers' preferential gas tariff.

Can the Minister say when full harmonisation will be achieved, so that our glasshouse growers know when they are supposed to be on the same basis as Dutch growers? Will she give an undertaking here and now to keep the position under careful review so that in future no steps are taken on the other side of the Channel to restore in some other form the advantages against which our growers have had to contend for so long?

As the hon. Gentleman knows, we shall certainly be doing that. Under the existing Commission guidelines, the aid that we currently pay to our growers ceases on 31 December this year. The Commission has agreed to give early consideration to extending the guidelines so that aid may continue until April 1983, when the Dutch advantage will be eliminated.

I congratulate my hon. Friend on the progress made on this subject, after a long period when no progress at all was made. Will she continue to ensure, however, that close attention is paid to this, as the Dutch have got away with a great deal over the past few years?

I can assure my hon. Friend that we are determined to have a viable and successful British glasshouse industry.

Will the hon. Lady also ensure that capital grant-aid to glasshouse producers is equivalent to that which is provided by the Dutch Government to their producers, in order to ensure that fair competition exists within the Community?

I can assure the hon. Gentleman that we keep that matter under constant review.

Is my hon. Friend aware that the British glasshouse industry will be watching the progress of talks between now and the end of December with considerable anxiety? Continuity of assistance between the end of December and April, when the new arrangements come into effect, is important. Will my hon. Friend also undertake to have long-term discussions within the Community to ensure that the energy costs do not get out of kilter in the future?

I can reiterate to my hon. Friend that the Commission has agreed to give early consideration to the matter of assistance from the end of 1982 until April 1983, when the advantage will be eliminated. We certainly keep the matter under constant review.