Common Agricultural Policy

Debate between Neil Parish and Kelvin Hopkins

Thursday 8th March 2012 Westminster Hall

[Kelvin Hopkins (Luton North) (Lab)]

I apologise, Mr Sheridan, for not being here for some of the debate. I have been trying to speak in the debate in the main Chamber. Being in two places at once is rather difficult. I wanted to have a say on the common agricultural policy, on which I have commented many times in the Chamber, and to take a rather more radical position than the Select Committee on Environment, Food and Rural Affairs or the Government.

I was somewhat disappointed by the Select Committee report. It was written by well-intentioned and good people, but I am disappointed that it does not take a radical position. In some respects, I support the Government’s position more strongly than the Committee’s. The report says that the CAP no longer takes the lion’s share of the budget, but it is still 40%. What is a lion’s share? I think that 40% is pretty much a lion’s share.

The CAP is still a net cost to the UK, although not as high as it was, and food prices have been consistently higher for UK consumers ever since we joined the European Union, or the Common Market, as it was. Higher food prices are regressive, in that they bear more heavily on those who spend a higher proportion of their income on food, namely ordinary working people and the poor. In that respect, it has always been negative, certainly in terms of the people in Luton North whom I represent.

Access to cheaper food from elsewhere in the world has been restricted. Before the CAP, UK prices and national subsidies were related to lower world food prices, not to the higher prices demanded inside the CAP area. UK membership of the European Union has resulted in an excessive cumulative cost in both budget and taxpayer terms and in food prices, but it has also had a knock-on effect on economic growth. If one spends more of one’s wealth on subsidising agriculture, clearly less of one’s wealth can be used in other parts of the economy, and we have had lower growth overall as a result.

On numerous occasions, I have called for the abolition of the CAP. I keep pressing that point, because I believe that within the European Union, or whatever it might be called, national subsidies would be more appropriate. They would be better judged, because nation states know better what it is appropriate to subsidise within their own economies; their agricultural sectors are different and they would be much more likely to husband their resources carefully if it bore directly on their own taxpayers rather than coming from some great gift in the sky, namely a CAP budget contributed to disproportionately by countries such as Britain.

That would be more targeted and efficient. It would also cause countries to decide to what extent they want to keep their agriculture at the same level or increase its size for security reasons. The report makes the point well about food security for the future. If we as nation states were concerned about it, our food production would be better than it is under the CAP arrangement, which makes us casual about it all.

Britain in particular would do well to maximise its food production—not absolutely, but in order to ensure secure supplies for the future. I am possibly the only person here born during the second world war. I survived only because we managed to import food, mainly across the Atlantic. Many people died bringing that food. We learned that producing a higher proportion of our food domestically is important for reasons of long-term security. With the world’s population growing and food shortages likely, we cannot guarantee that that will not be necessary in future. Food security is important.

Britain is an efficient agricultural producer. Other countries are very inefficient. Increasing their efficiency would make their agriculture more profitable, and they would be able to sell it. In some cases, their wage costs are much lower. They could sell more to countries such as Britain as and when we decide to purchase. A national approach to agricultural subsidies is the way forward. The CAP is outdated and was never a good idea in the first place.

From time to time we have called for reform of the CAP, and some reforms have been made. I called for its abolition, but our leaders during the previous Parliament decided that they would seek serious reform. I remember that at the end of Britain’s last presidency of the European Union, Tony Blair went to the very last meeting in December, in theory to call for CAP reform. He was then beaten all around the room by President Chirac, coming back with no reform and a cut in our rebate. At the time, The Economist, hardly a magazine of the left, said that the deal was so bad that no deal would have been better. So much for reform. We must put pressure on the European Union. That is the only thing it reacts to.

[Neil Parish]

I think the mistake made by Prime Minister Tony Blair at the time was that he gave away the rebate without getting the reform. What he should have done, if he was going to give away the rebate, is get the CAP reform first. That was his mistake.