Common Agricultural Policy

Debate between Lindsay Hoyle and Roger Williams

Tuesday 18th June 2013 Commons Chamber

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Is there anybody else while we are on the record? If not, I call Roger Williams.

[Roger Williams]

Thank you, Mr Deputy Speaker. I am glad that my contribution has caused so much interest in the Chamber.

The shadow Minister was rather fierce in his criticism of the Minister. Only yesterday, a Minister from the Department for Environment, Food and Rural Affairs came to the House to make a statement on the common fisheries policy. That was always seen to be intractable, yet the outcome seemed to have the support of the whole Chamber. Indeed, we hope that the CAP negotiations will meet with the same success.

It has been said that little progress has been made in reforming the CAP—the hon. Member for Coventry South (Mr Cunningham), who is no longer in his place, said so at the beginning of the debate—but I must remind everybody that 25 years ago CAP expenditure amounted to 75% of EU funding, whereas it now amounts to just over 40%. In that time, the amount spent by the average UK family on food has decreased from 25% of disposable income to about 15%, although sadly that trend is moving in the opposite direction because of the increases in commodity prices. Back in the 1980s, the CAP depended on market support and intervention through export subsidies and import tariffs, which were really trade-distorting implements and very unfair on developing countries. Things moved on, however, and in 1993 the MacSharry proposals introduced direct payments that were not so trade distorting, and in 2003, the Fischler proposals decoupled support, which was another step forward.

Why do we still need a CAP? It was first introduced to ensure that people working in agriculture and the countryside had incomes comparable to those in more urban and industrial occupations. Sadly, it has been unsuccessful in doing that, and incomes in the countryside are still less than in towns. Many farming businesses in this country would be making no profit at all, if it were not for direct payments.