The hon. Gentleman is right that it is a long, hard business to reform the CAP. The sadness is that occasionally within negotiations some member states want to turn the clock back, and even to forgo the reforms that have already been accomplished, so I will not pretend anything other than that this is a long, hard process and the advantages and the movement forward that we gain are not always as far and as quick as we would wish them to be.
We want to see an efficient and responsive agricultural sector not just across the EU, but globally, and the CAP should be central to helping us achieve that. It is therefore
essential that the CAP continues to reform and to reduce reliance on damaging direct subsidies that do not offer good value for money or deliver the public goods we want. The UK has worked extremely hard to engage with like-minded member states throughout the ongoing negotiations to ensure that the CAP continues on the path of reform, but we know that other member states and elements in the European Parliament are determined to turn the clock back and reverse some of the hard-won reforms of MacSharry and Fischler. We simply cannot allow that to happen.
I will touch on a few of the priority areas that will be the focus of our negotiating efforts over the next week. First, market intervention remains a prime concern. As we all know, the CAP has made great progress over the years in reducing reliance on expensive and trade-distorting measures that interfere with the market and helped to create the butter mountains and wine lakes of the past. I was therefore very disappointed when in March the European Parliament voted through amendments that would move EU agriculture away from market orientation. Those proposals would increase budget pressures for old-style market support. That is not an acceptable use of taxpayers’ money. It hits consumers twice; they pay for their food once through their taxes and again at the tills.
The EU sugar regime, for example, constricts supply in the market and adds costs for British food and drink producers and ultimately for the consumer. The combined effect of EU beet quotas and high tariffs on cane imports means that the current EU regime has driven up the wholesale price of sugar by 35% and added 1% to the food bills of hard-pressed families. Members states had previously agreed to end the restrictive sugar beet production quotas by 2015, but there has been incredible pressure to unpick that agreement. In our compromise in March, we agreed a partial extension of sugar beet quotas to 2017. I am disappointed that Members of the European Parliament voted to extend the quotas further to 2020. That is unacceptable. The situation is compounded by the lack of a level playing field for sugar cane imports, something we are working to change. We need to remain fully committed to moving the CAP in the right direction towards greater market orientation. Nothing must be left to chance. Butter mountains and wine lakes must remain a thing of the past.
I know that many hon. Members have an interest in the proposed greening of the CAP. The Government believe that the CAP should reward farmers for the public goods they deliver, such as environmental benefits and protecting and enhancing wildlife. Pillar two of the CAP is the best place to fund that, which is why at the European Council in February the Prime Minister secured the additional flexibility to be able to transfer up to 15% of our direct payments budget to fund our rural development and environmental programmes.