June 22, 2005: The death of the sugar industry
in the UK
Agriculture Commissioner
Fischer Boel today unveiled plans to drastically cut the price
of sugar beet by 42%. Robert Sturdy MEP denounced this move as
signalling the death of the British sugar industry.
Mr. Sturdy said: "the price cut will affect
Britain more than other EU member states due to factors such as
quotas and the size of our sugar industry. The worst case scenario
for the UK would be a cut closer to 52%. Coupled with the Government's
refusal to give compensation to sugar producers directly, the overall
effect will be devastating".
"Obviously sugar needs reforming,
but it could be done through reducing quotas as well as price in
a way that would support production in ACP as well as EU countries.
We have to cut the amount of sugar produced in the EU but why couldn't
the reform focus on the largest sugar producers rather than hitting
the smallest hardest?
The price cut will also destroy African, Caribbean
and Pacific (ACP) sugar producers who will not be able to compete
at the new price levels. At a time when politicians and pop stars
are urging world leaders to Make Poverty History the EU is giving
with one hand and taking away with the other. Poor farmers in Least
Developed Countries will lose out; the only winners will be large
multi-nationals who will be able to buy cheaper sugar. Hopefully
consumers will see a slight drop in prices but wouldn't this money
be better spent helping some of the world's poorest farmers?
Compensation
of 40 million Euros has been promised to these ACP producers but
no one knows where the money will come from. On the day that Tony
Blair has performed yet another U-turn by admitting he is willing
to give up the rebate in exchange for agricultural reform, might
it be our rebate that will pay for this badly planned sugar reform?"
