Food Supplies
Hotel And Restaurant Meals
1.
asked the Minister of Food whether he will now announce the revocation of the Meals in Establishments Orders.
2.
asked the Minister of Food what decision he has now reached as to whether fish may be served as an extra course in hotels and restaurants.
33.
asked the Minister of Food whether he will now withdraw the order restricting the price of meals in hotels and restaurants to 5s.
As my right hon. Friend told the House on 13th March and again on 20th March, he is now reviewing these regulations, and will make an announcement as soon as possible.
Does the hon. Gentleman's right hon. Friend accept the view expressed by a caterers' association, during the week-end, that the abolition of the 5s. rule would do more than any other relaxation of control to attract foreign tourists here and to keep British holidaymakers in this country?
I would not care to say whether my right hon. Friend accepts that view or not, but this matter is under urgent consideration and everything appertaining to the subject will be taken into account.
Does not the Minister think that, especially in the case of fish, any such relaxation would not only stimulate the demand for fish, but would give large numbers of people a chance to have, in canteens and restaurants, a little more of something they want?
We have had representations from trawler owners about the difficulties they are experiencing in disposing of fish, and that also, of course, is a consideration to which full weight will be given.
Will my hon. Friend, in considering this matter, take into consultation the new British Travel Association?
We shall be happy to listen to anyone who can make a contribution to our arriving at a right decision in this matter.
As this matter has been under consideration by the Ministry for a very long time, and as we have had several promises that an early decision would be arrived at, is it not time that they made up their minds, especially as the tourist season is approaching?
There has been a change in tenancy, and we are, I think, entitled to a reasonable time to look round. There will be no delay in arriving at a decision.
As I am still not quite clear what the hon. Gentleman has in mind, will he tell me whether he agrees that the continuation of this Order is hypocritical, that it is evaded by one means or another, and that in many restaurants and hotels it does not reduce the price of food?
I could not agree that the reason for this Order was political, or that its continuation is political.
I said "hypocritical."
I do not think I can add anything to what I have said.
Retailers (Fat Allocation)
3.
asked the Minister of Food what are the conditions under which a retailer may change his allocation of fat from a wholesaler.
Changes in the amount of fat which retailers may obtain from wholesalers are authorised by the local food office on the basis of the number of registered customers. Certain dates have been agreed with the trade associations on which retailers can change the wholesalers from whom they obtain fat, provided that eight weeks' notice is given to food offices. The next two such dates are 23rd April and 3rd December.
Is the Minister aware that the Question deals with the allocation of fat and not the amount; that if we return the fat before cooking we are told it would be all right when cooked, that if we send it back after cooking we are told it has been spoilt in cooking, and that if we write to the Ministry they look into the files, and not into the fat? In the meantime, West Oldham is facing all the horrors of a chip-less spring.
Without accepting what my hon. Friend said, I would be very pleased to go into this with him in person.
Is the hon. Gentleman aware that present arrangements are unsatisfactory because a fish fryer or restaurateur cannot get more fat until he gets more customers, and he cannot get more customers until he gets more fat?
Olive Oil
4.
asked the Minister of Food why his Department, acting through the Olive Oil Association, is selling olive oil at 25s. 3d. a gallon to wholesale buyers in this country when those buyers could buy best quality olive oil at 15s. 8d. a gallon f.o.b. at Spanish ports; and whether in the circumstances he will free the importation of olive oil from control by his Department.
My Department does not now buy or sell olive oil. The first step towards the decontrol of the olive oil trade was made in 1947, when the Ministry's stocks were taken over by the Olive Oil Importers' Association. So as to make the changeover to full private trading as smooth as possible, an undertaking was given to this Association that they should be the sole importers until stocks had been substantially reduced. This arrangement will terminate not later than the autumn of this year.
Does the Minister's answer mean that until the autumn of this year home consumers of olive oil will have to pay 8s. a gallon above the world price?
It is quite true that, at the moment, oil can be bought cheaper than at the Association's price, but insurance, freight charges, and duty have to be added to the figure mentioned in the Question and, of course, the importers' profits. There is, here, a very real problem. Nobody could calculate with mathematical precision when the market would change from a seller's to a buyer's market, and I do not think it would be right to throw members of this Association to the wolves.
Does this mean that the Department themselves are very much concerned about this obvious difference in price to the purchaser of olive oil abroad and in this country? Will my hon. Friend's Department tackle seriously this obvious anomaly?
Does the hon. Gentleman's reply mean that his Department, in bulk buying, paid too high a price, that they saddled importers with the stock and that they are now protecting themselves and importers at the expense of the public?
No, I did not mean anything of the kind. We entered into an arrangement with this Association as far back as 1947. There was a very good yield of olive oil last year. That, of course, has changed the market and, in the circumstances, I cannot agree that it would be right to throw members of the Association to the wolves.
Tea
5.
asked the Minister of Food what quantity of tea he proposes to purchase from India, Pakistan and Ceylon in 1950, as compared with the 465,000,000 lb. of tea secured from those countries in 1949.
We hope to buy as much tea this year as last, but negotiations are still in progress with the Governments concerned. Last year we contracted for 454,000,000 lb.
Has my hon. Friend tried to get tea from Indonesia at a moderate price?
We hope to get a small quantity this year.
Sugar Allocations (Manufacturers)
6.
asked the Minister of Food how much sugar has been allocated in each of the past three years for the manufacture of cakes, biscuits, table jellies and jam, respectively.
As the reply contains a table of figures, I will, with permission, circulate it in the OFFICIAL REPORT.
Would it not be true to say that the allocation of sugar for manufacturing purposes has been steadily increasing
QUANTITY OF SUGAR ALLOCATED IN EACH OF THE PAST THREE YEARS TO CERTAIN INDUSTRIES, EXCLUDING EXPORTS AND SERVICES REQUIREMENTS | |||||||||
Year | Cake and flour Confectionery | Biscuits | Table jellies | Jam | |||||
Tons
| Tons
| Tons
| Tons
| ||||||
1947 | … | … | … | … | … | 111,000 | 39,000 | 12,000 | 200,000 |
1948 | … | … | … | … | … | 101,000 | 31,000 | 11,000 | 200,000 |
1949 | … | … | … | … | … | 108,000 | 46,000 | 12,000 | 200,000 |
Fish
7.
asked the Minister of Food whether he can give an estimate of the quantity of fish caught by British trawlers which has been sold for fish meal, manure or has been wasted due to catches being landed by foreign trawlers, or because there has been a release of fish from cold store by his Department.
I am afraid that it is impossible to make any estimate of this sort. There are many reasons why the whole catch of British fish does not always find a market. In the last six months, two-thirds of the white fish sent to meal factories went in November and December, when there was some bunching of heavy landings by British vessels, but when foreign landings were not exceptionally heavy. Except during the past few days my Department has not sold any frozen fish since last summer. Most of the stocks of frozen fish are held by private traders.
Overseas Food Corporation
8.
asked the Minister of Food how much of the £33,450,000 advanced to the Overseas Food Corporation has been used for the Groundnut Scheme in Tanganyika: and how much for the sorghum and pig project in Queensland.
over the past three years? Would my hon. Friend make it his first concern to maintain the domestic sugar ration even, if necessary, by a cut in the manufacturing allocation?
That is our hope and intention. The overall figures for manufacturers in 1950 were reduced by 35,000 tons as compared with 1949.
Why not take it off the ration altogether?
Following is the statement:
The sum of £32,458,680 has been allocated for expenditure in East Africa and the balance to projects undertaken by the Queensland-British Food Corporation. Of the first sum, £1,745,328 is recoverable from the East African Railways and Harbour Administration.
May the House be told whether the Minister of Food has yet had the opportunity of discussing expenditure with the Chairman of the Overseas Food Corporation, so that we do not accumulate any more white elephants in Tanganyika?
I do not know what conversations the Minister may or may not have had with the Chairman of the Overseas Food Corporation. This project is being given very careful examination.
Rations
9.
asked the Minister of Food whether he will give an assurance that he will pay special attention to the needs of the individual ration-book holder when granting any ration increases in the near future.
That people living alone sometimes have special difficulties over rations is fully recognised, but to attempt to give such persons differential rations would prove, I am afraid, an impossible task.
Could the hon. Gentleman give us the proportions allocated to private rations and to catering establishments?
No, Sir, not without notice.
12.
asked the Minister of Food whether he will consider giving smallholders the right to claim the additional rations now granted to agricultural workers.
No, Sir. The special cheese ration for agricultural workers is meant to provide for packed lunches to be eaten away from home, while working on their employer's farm. Smallholders are free to return home for meals.
Will the hon. Member consult with the Minister of Agriculture to ascertain whether equal shares of food can be given for equal work?
Points Goods (Rural Areas)
10.
asked the Minister of Food if he will arrange to have supplies of points goods available at shops in the rural areas suitable for farm workers at the busy seasons on the farms.
Many of the foods covered by the points scheme are now fairly plentiful in all parts of the country. I regret I cannot promise that rural areas will be given a preferential share of any particular food. The Ministry's regional and local food officers will, however, be very willing to assist in overcoming any individual difficulties which may arise.
Does my hon. Friend realise that it is necessary to have points goods suitable for farm workers in villages at certain seasons in the year? Will he look into this matter again, because it is rather important to the countryside?
I will look into the matter, but I would point out that all grocers are able to carry stocks which have regard to the consideration my hon. Friend has raised.
When does the Minister hope to make a statement on the possible ending of the points rationing scheme?
Is the hon. Gentleman aware there is a real difficulty about the annual shortage of extra points goods, and that it would be greatly appreciated if he could do better this year than has been done in the past?
Will the Minister give the same preference to the agricultural areas as is given to the mining areas?
Could the Parliamentary Secretary say whether there is any truth in the rumour that the Minister intends to end points rationing?
It would be quite wrong for me to anticipate any ministerial statement.
Are we to take it, then, that reports this morning of speeches by the Minister have no foundation in fact?
Where are we?
Oranges, Accrington
11.
asked the Minister of Food if he is aware that Accrington has not had any recent allocation of oranges; and whether this situation will be remedied.
Arrivals of oranges are rather few and far between at the moment because we are coming to the end of the winter season. But over the past 12 months, I would assure my hon. Friend that Accrington has done at least as well as any other part of the country.
Is the Minister aware that I am not asking about the last 12 months and that according to my information Accrington has had no oranges for the last five weeks?
We have to allocate to different parts of the country at different times. We never get sufficient at one time to cover the whole of the country.
Fruit And Vegetables (Imports)
16.
asked the Minister of Food whether he is satisfied that the issue of a general licence to permit the import of new potatoes from European France between 21st March and 31st May next will not cause financial loss to Cornish growers, in view of the fact that the Cornish crop is expected to come on to the market during the last two weeks of May.
There is seldom any large quantity of new potatoes from Cornwall ready in May, and it is not anticipated, therefore, that difficulty will arise.
Would the Minister agree that if West Cornish potatoes start coming on the market at the end of May, at the same time as French and Jersey potatoes, there may be an accumulation which would carry over into the first week in June and cause a glut when the bulk lifting of Cornish potatoes takes place?
My information is that there is seldom any large quantity of Cornish new potatoes ready in May. This question ties up with the attempts which we are making to liberalise European trade.
Will the Parliamentary Secretary reconsider the date of expiry of the general import licence if he is assured that sufficient quantities of Cornish new potatoes are available early in May?
I am going to look into that.
24.
asked the Minister of Food which of the following fruits and vegetables are to be received in this country under the Trade and Financial Agreement between the United Kingdom and Czechoslovakia of 28th September, 1949, for which we agreed to pay the sum of £1,900,000 in the first year; and whether there are any others not here listed: onions, bilberries, horseradish, fresh cherries, fresh plums, apricots, fresh pears and apples.
Under the Trade and Financial Agreement with Czechoslovakia, the trade has imported very small quantities of onions, bilberries and pears; no other fresh fruits or vegetables have been received or are expected in the first year of the Agreement. The figure of £1,900,000 to which the hon. Member refers relates almost entirely to imports of foodstuffs on private account, and will only be reached if traders think the demand in this country warrants it.
Can the Minister give an assurance that no British farmers will suffer on account of this Agreement?
I cannot give a guarantee to that extent. It is in the interests of this country to expand world trade as much as possible, and that can only be done if we are prepared to deal with other countries as we expect them to deal with us.
Will the Parliamentary Secretary have regard to the requirements of the consumer at the same time as he is considering the interests of the producer in this matter?
Yes, Sir.
27.
asked the Minister of Food how many tons of apples were imported by his Department during 1949; what were the respective amounts of foreign currencies used to buy those apples; what was the sterling equivalent of the total sum; what total sum of money was received by his Department from the sale of the apples in the United Kingdom; and what percentage of the apples so imported were wasted.
Approximately 88,000 tons of apples, valued in sterling at about £3 ¾ million c.i.f., were imported by my Department in 1949. The only non-sterling currency included in this figure was approximately 700,000 dollars for Canadian apples. The amount realised on sale, after meeting distribution costs in this country, was about £5¼ million. The wastage was about 3 per cent.
Could the hon. Gentleman say what amount of dollars was represented by that wastage?
No, Sir; not without notice.
Is the hon. Gentleman aware of the very large sums of money invested in scientific apple culture in this country in the last few years, the large amount of employment given and the value of the trade? Will he have regard to those facts in any future negotiations for the purchase of foreign apples?
We always have full regard for the interests of home producers.
Is the Minister aware that a good many Kentish growers of apples last year did not sell all they grew? Is it not very unfortunate that we should be importing apples when we have very good apples of our own which we are not able to sell?
Bring the price down.
Foreigners often pack and market apples more attractively than we do.
If my hon. Friend knows of any of these good apples which Kentish farmers are unable to sell will he send them to Bermondsey? We have none there.
Is the hon. Gentleman aware that the Government refused to allow home growers to have the packings for which they asked?
In view of the serious charge which he has just made will the hon. Gentleman remember that his colleague, the Minister of Agriculture, has said on more than one occasion that the best apple packing in this country is better than that of anywhere else in the world? Will he withdraw his statement, which was a serious reflection on the industry?
I do not want to be offensive to anybody, but I say that foreigners often grade and pack their commodities rather more attractively than some of our people do at home.
Is it not the case that, in spite of great developments in home growing during the last few years, it is still almost impossible to buy decent eating apples in many places in this country?
28.
asked the Minister of Food how many tons of pears were imported by his Department during 1949; what were the respective amounts of foreign currencies used to buy those pears; what was the sterling equivalent of the total sum; what total sum of money was received by his Department from the sale of the pears in the United Kingdom; and what percentage of the pears so imported were wasted.
My Department did not import any pears in 1949. The remaining parts of the Question do not, therefore, arise.
Potatoes (Transport)
34.
asked the Minister of Food whether he is aware that under his existing Order dated 10th March, potatoes in certain areas can only be transported by a "C" licence lorry which imposes an unnecessary restriction on the disposal of the potatoes; and what steps he will take to remedy this position.
Restrictions on the movement of potatoes from certain counties were quite deliberately imposed by an Order dated 17th February to reserve the better keeping potatoes for consumption at the end of the season. They will be removed when it becomes desirable to draw on those supplies. To avoid interference with local trade movement in "C" licence vehicles is allowed.
Will the hon. Gentleman bear in mind the loss to British transport services and to British Railways by an absurd order of this kind?
Yes, Sir.
Cream
13.
asked the Minister of Food when he will allow Devonshire farmers to sell clotted cream.
20.
asked the Minister of Food whether in view of increased milk production, he is prepared to authorise the sale of clotted cream.
There are serious difficulties about this and I can add nothing at present to the answer already given by my right hon. Friend.
Is the hon. Gentleman aware that his reply will cause great disappointment to people living in Devonshire, who believe that Devonshire cream would be a great inducement to tourists and would compensate them to some extent for their dull rations?
Will the hon. Gentleman remember that this proposal would be very helpful to many farms in the County of Devon? Will he also remember that, as my hon. Friend has said, the numerous visitors we get to the county are very partial to a modicum of Devonshire cream? It is one of the many important amenities of Devon.
Is my hon. Friend aware that Cornish cream is equally as good as Devonshire cream?
Will my hon. Friend see that permission to produce whipped cream will not be given unless and until everybody has a full milk ration?
Flour
14.
asked the Minister of Food what is the degree of extraction of flour from wheat in use today for the making of normal bread; the degree of extraction in 1938; and what are the contents in each case, of protein, fat, iron, calcium, phosphorus and vitamins, including carotene.
The extraction rate of flour used in 1938 varied, but 70 per cent. was the most usual; the present extraction rate is 85 per cent. With permission, I will circulate in the OFFICIAL REPORT the average composition of flour of 70 per cent. and 85 per cent. extraction rate.
Is my hon. Friend aware that Members of Parliament have recently received urgent recommendations from some of the parties interested in bread making, asking us to press for a return to the old extraction rate? Will my hon. Friend tell us whether his Department is satisfied that the present grade is healthier and better than the pre-war grade?
All I can say is that we get representations from both sides—some for and some against. We have to arrive at what we think is the best conclusion having regard to the whole situation.
Does not the Minister agree that in 1945 Government experts stated that an 80 per cent. extraction rate supplied all the vitamins that were necessary?
Following is the information:
The average composition of flour of 70 per cent. and 85 per cent. extraction rates is as follows:
— | 70 per cent. extraction | 85 per cent. extraction |
per oz. | per oz. | |
Protein | 3·1 g | 3·3 g |
Fat | 0·3 g | 0·5 g |
Iron | 0·28 mg | 0·6 mg |
Calcium | 4·5 mg | 46 mg* |
Phosphorus | 26 mg | 54 mg |
vitamin B1 (aneurin) | 0·021 mg | 0·082 mg |
Riboflavin | 0·017 mg | 0·37 mg |
Nicotinic acid | 0·23 mg | 0·57 mg |
*Includes calcium added as creta preparata. |
Flour contains a negligible quantity of vitamin A (or carotene) and no vitamins C or D.
25.
asked the Minister of Food how much of the flour used for human consumption is bleached by means of nitrogen trichloride or other agents.
Over 90 per cent. is treated with nitrogen trichloride; of the remainder, some is untreated and the balance is treated with any of several lesser known flour improvers.
Is my hon. Friend aware that for some considerable time we have known that animals are very seriously affected when they eat flour treated in this way, and that this treatment is illegal in many countries, including America? Will he give an assurance that his Department will consider making representations with a view to stopping this practice altogether?
The information I have is that there is nothing detrimental at all to human health in the present method of treating flour. So far as any harm to animals is concerned, as that has been raised I will go into the matter.
Will my hon. Friend ask his experts to reconsider the matter, in view of recent evidence and publications?
If my hon. Friend has any evidence I shall be very happy to consider it.
31.
asked the Minister of Food by how much the agene process has been increased per sack of flour since 1939; and to what extent the agene process is to be continued.
I regret that the information asked for in the first part of the Question is not available. As to the second part, a change in technique which affects over 90 per cent. of the flour used in this country is being introduced, but this will take some time to effect, especially as the necessary plant, and supplies of the new improver (chlorine dioxide) have to be secured from the United States. However, the millers in co-operation with the Ministry are doing all they can to speed the change. I am sending the hon. Member a copy of an announcement made by the Ministry of Health and my Department on 27th January, which explains the position.
The hon. Gentleman mentioned "improver." Can he say what improvement is being sought?
Possibly in palatability, for one thing.
Dried Egg
15.
asked the Minister of Food whether, in connection with the dried egg which has been, or is about to be purchased from the United States of America, he will give the approximate date of the manufacture of this dried egg and an assurance that no part of the quantities purchased have been manufactured for more than three years.
It was all made in 1949.
May we be quite sure that the Government will not lend themselves to the purchase of dried egg which is over two years old, in view of the large quantities which exist in many parts of the world? May I have that assurance?
The hon. Gentleman may have that assurance. We have the word of the U.S. Department of Agriculture that this sale is from 1949 production.
Sausage Casings
17.
asked the Minister of Food if he will now cease to trade in sheep and hog casings and allow the export of sheep casings, without licence, and the import of hog casings from the United States of America and Canada, under licence, by private traders.
The Ministry of Food does not trade in sheep and hog casings. While the present shortage of sausage casings continues we cannot allow sheep casings to be exported, except where they will earn dollars or other hard currency. Some hog casings are already imported under licence from the U.S.A. and Canada and paid for with dollars earned by the export of sheep casings to those countries, but I regret that we cannot afford any more dollars for further imports.
Does that affect the price of haggis?
Coffee
19.
asked the Minister of Food what alteration in the price of coffee is contemplated.
Because of the big rise in the world price of coffee there will have to be some increase in retail prices in this country. I cannot yet say when or how much this will be.
Slaughtering Facilities, Newbury
23.
asked the Minister of Food if he is aware that slaughtering facilities at Newbury are inadequate to deal with the additional bacon pigs now being offered for slaughter there owing to foot and mouth disease regulations; and if he will arrange for an additional slaughterhouse to be opened so that local farmers and smallholders can dispose of pigs before they become wastefully fat.
I know that the prolonged foot and mouth disease restrictions in the Newbury district have prevented the slaughter of pigs at the usual places outside the restricted area and have resulted in increased numbers having to be killed at Newbury slaughterhouse and at the Abingdon bacon factory. I am having inquiries made locally to see if there is any other slaughterhouse that could be brought into use immediately to handle pigs.
Will not the Minister act promptly? These slaughterhouses are not being used, yet over the week-end I had no fewer than six telephone calls from farmers and smallholders who cannot get their pigs killed?
If the hon. Member will give me the addresses of the slaughterhouses I will go into it immediately.
Shrimps
26.
asked the Minister of Food if he will allocate more butter or margarine for the preserving and potting of an increased quantity of Morecambe shrimps.
We will willingly consider any individual application on its merits.
Is the hon. Gentleman aware that this delicious food is full of protein and, since it will make a contribution to the variety of our food, will he be generous to the producers in this matter?
It is because we know that fact that we are quite willing to consider any application.
In his willingness to consider these applications will my hon. Friend also bear in mind the necessity of not granting too much margarine and butter to manufacturers while we have such short supplies of butter at home?
Bread
30.
asked the Minister of Food what is the drop in the consumption of bread in the last three months; what is the percentage of dollar wheat in flour in 1949; and what is the proposed percentage in 1950.
There has been very little change in the consumption of bread during the last three months, except for a small seasonal drop in January. The dollar wheat content of the flour distributed in 1949 was about 58 per cent., but it is too early to forecast what the corresponding percentage may be in 1950.
If the hon. Gentleman cannot tell me the proportion for 1950, can he tell me the proportion for the first three months of this year?
Not without notice.
Vodka (Trade Description)
18.
asked the Minister of Food from what countries the alcoholic liquor known as vodka, or vodka, is allowed to be imported and sold in the United Kingdom as vodka without some such qualification as French vodka; whether he is aware that most vodka for export has at all times been manufactured outside Russia in such countries as Latvia and Poland; that much of the manufacture in Western Europe is now being carried on by the original producers whose business in Latvia was confiscated; and whether he will modify the Labelling of Food Order, 1946, so as to permit all vodka to be sold as such.
Under the Labelling of Food Order, if the name used for a drink suggests that it comes from a particular country or area when, in fact, it comes from some other place, then the label must say so. The question how the Order applies to any particular drink is, of course, ultimately for the courts to decide; but subject to that my view is that vodka from a Western European country would have to be described on the label by an adjective indicating the country of origin. I do not think this requirement is unreasonable or that the Order need be amended.
Does not the Parliamentary Secretary realise that the policy he is pursuing means that only vodka coming from a Communist origin can be so described and does he not agree that when exactly the same beverage can be manufactured in non-Communist countries it might be allowed to be sold as such?
Is this vodka capable of penetrating an Iron Curtain?
Could my hon. Friend give an assurance that he will deal with all supplies of this liquor in the same way, whether they are described as "vodka" or as "wodka"?
Does not the hon. Gentleman realise that in any case vodka made in France would have a label saying "Produce of France," and is that not sufficient descriptive differentiation? Is he not further aware that vodka is vodka, wherever it is made?
I would point out that this cuts two ways. It might be said that whisky is whisky, whatever its source of origin, but Scotch whisky producers would be very sorry if anybody could use the word "Scotch."
Would not the hon. Gentleman avoid all these difficulties about the label if he were to say honestly, on all the bottles, that they were poison?
Transport
Air Station, Culham (Coach Service)
35.
asked the Minister of Transport why Messrs. Abingdon Coaches have been ordered to discontinue the private motor-coach service provided by them for naval personnel stationed at Royal Naval Air Station, Culham, proceeding on week-end leave to London; and whether he will make a statement.
43.
asked the Minister of Transport on what grounds men of the Royal Naval Air Station, Culham, Berkshire, were prevented from travelling on week-end leave by motor-coach by his withdrawal of their coach, and so obliged to travel by train.
Acting under his general instructions to secure all reasonable economy in the consumption of motor fuel, especially where empty running is involved, the Regional Transport Commissioner arranged with the coach company not to use their fuel ration for the service in question. It is in the public interest that the best use should be made of the limited amount of fuel available to operators and that it should not be spent unnecessarily on journeys for which, as in this instance, there are reasonable alternative facilities.
Is the right hon. Gentleman aware that not only the firm mentioned in the Question, but also four other firms were advised by his Department that unless they stopped this service their allocation of petrol would be cut off completely? Does he and his Department approve of this sort of blackmail?
I should like to look into the question of whether there was an instruction or not. This is a common practice with regional transport commissioners and operators throughout the country. It is to avoid empty running. I am not aware that in this case there was an instruction. My information is that it was a case of the usual practice of co-operation between operators and the regional transport commissioner.
Has the right hon. Gentleman consulted the Admiralty in this matter? If so, what are their reactions?
No, Sir. It is not a matter for the Minister. There are general instructions to regional transport commissioners, as I have indicated, to save fuel. At this stage it is a matter for the commissioner and not for overriding decision by the Minister.
Is my right hon. Friend aware that this sort of thing is happening in other parts of the country, and that it causes difficulty, especially for men going home on week-end leave who have no train facilities available? It cuts down their leave. It hits them very hard.
I quite appreciate the need for every consideration to be given to such circumstances. On the other hand, it is essential, in furtherance of general national policy, that these journeys should not be unduly expensive in fuel consumption. In this case additional facilities were provided which largely met the circumstances.
The right hon. Gentleman says that these are matters for regional decision. Will he not agree that the final responsibility is his and, therefore, Parliament's? Will he look at this again to see, if he does not agree with the regional authorities, what other steps he can take?
Yes; but while I do not dispute for a moment that the final decision rests with the Minister, in this case it would mean withdrawing the general instruction about the need to save fuel, which, of course, is a Government one.
Can the right hon. Gentleman really say that this decision was taken to save fuel? Is he sure it was not to drive traffic somewhere else?
I can give the assurance that this decision was not taken for the purpose of driving traffic to any other form of transport. [HON. MEMBERS: "Oh."] Had there been a scheduled bus service in this case the same decision would have applied. It is in line with the decisions being operated all over the country, to avoid empty running. In this case it would have meant empty running on both the outward and return journeys.
Is the Minister aware that in the case of one city, which is on the main line, and where there is a barracks within a quarter of a mile of the station, a similar order has been introduced? Surely, that cannot save very much petrol.
I beg to give notice that in view of the gravity of the matter and the unsatisfactory nature of the reply I shall raise the question again at the earliest possible moment.
Charges
37.
asked the Minister of Transport whether he proposes to accept or reject the advice now tendered to him by the permanent members of the Transport Tribunal acting as an advisory committee under Section 82 of the Transport Act, 1947.
This matter is still under consideration.
How long does the right hon. Gentleman propose to delay this important decision? Is he aware—are the Cabinet aware—of the very great hardships and difficulties which are being imposed on private enterprise by the fact that people are incapable of fixing their prices until they know what the costs of transport are to be?
I was under the impression that in a recent Debate the hon. Member himself was urging the importance of the effects of such a decision. [HON. MEMBERS: "Hear, hear."] At the moment, I have nothing to add to the statement I have made.
Will the right hon. Gentleman be able to make a statement before we adjourn for Easter?
I do not know that I shall be in a position to do so; I cannot say definitely at the moment.
Will the right hon. Gentleman explain how the inter-Departmental inquiry discussing transport rates in Scotland can discuss the subject intelligently when they do not know on what to base their costs?
Answer.
I can only repeat that I am not able to make any further statement now.
Consultative Committees
39.
asked the Minister of Transport when he proposes to set up area users consultative committees throughout the country.
The Central Transport Consultative Committee has been in existence since December, 1948. Committees for Scotland and Wales are operating, and I recently set up the Area Transport Users Consultative Committee for London. My view is that until the British Transport Commission has had a reasonable time in which to make progress in the consolidation of their undertakings, it is not desirable to set up the local committees provided for in the Act. I had also hoped that I could take into consideration the needs of area road passenger schemes in deciding the areas of these consultative committees, but progress in this direction has not been as rapid as I would have wished and, consequently, I propose to reconsider the establishment of these area transport users consultative committees.
Is my right hon. Friend aware that if those bodies were set up the relationships between Transport Commission and the users of transport would be very much better than they are at present?
As I have already said, I am proposing to consider that matter now.
Does not the right hon. Gentleman's answer show that this method of safeguarding consumers is now a demonstrable farce? He says he has set up the London area one, but is he not aware that he set it up only four weeks ago, that no recommendations have come from it, and that despite that the Transport Commission are now trying to screw another £3½ million out of the travelling public in London?
Is my right hon. Friend aware that there are many rural areas, very inadequately served by buses and trains, whose problems can only be solved in consultation with the people on the spot, the people who live there; and does his answer today mean that he is not going to set up consultative committees to cover such areas as Essex and East Anglia?
No, certainly not. If my hon. Friend will read my reply he will see that it is the intention now to review this situation and to proceed.
Is it a fact that the consultative committee for Wales has met on only one occasion since it was set up?
I am not aware of that.
The Minister based his explanation on the delay in the setting up of an area scheme. Is he taking any action to speed up the progress of the area scheme?
It would certainly have been an advantage if one could have taken that problem into consideration. As I have pointed out, I cannot wait any longer.
In view of the fact that the restrictions placed on Members of the House were related to the existence of these advisory committees, if the advisory committees are not to be appointed will the right hon. Gentleman consult with his colleague the Lord President to revise the rights of Members in asking questions about transport problems.
The right hon. and learned Gentleman cannot properly have digested my reply. I have not indicated that it is not the intention. I have explained the reason why they have not been appointed, and have said that it is the intention to review this matter.
On a point of Order. Is not the question of the right of Members to ask questions a matter to be determined by you, Mr. Speaker, and not by the Minister?
It is a matter of the custom of the House, which I have to interpret.
Is it not a fact that not one recommendation affecting fares in London has come to the right hon. Gentleman from the whole of this machinery to date? Does not that mean, as my right hon. and learned Friend says, that the whole machinery for looking after the consumer has completely broken down in this connection?
I entirely disagree with that view. As I explained during one of our Debates, the procedure is for these bodies to make their representations to the Minister. It does not follow that they will not, but I am not able to say whether they will or not; they have the opportunity.
Maritime Consultative Organisation
38.
asked the Minister of Transport which Governments have now ratified the March, 1948, Convention on the Inter-Governmental Maritime Consultative Organisation; and what progress is now being made with this organisation.
So far, the United Kingdom, Canada and the Netherlands have accepted the Convention to which my hon. Friend refers. It does not, however, come into operation until it has been accepted by 21 countries, including seven with not less than one million gross tons of shipping. Preparations for the setting up of the organisation have been carried as far as possible in these circumstances.
Can the Minister not give us any further information as to the prospects of this organisation being established, and as to when these other ratifications are likely to come about? In the meantime, what is happening about discriminatory practices, which are the main reason for setting up this organisation?
All I can say is that the Foreign Office are doing all they possibly can to influence other countries to sign this Convention.
Trams, South London
40.
asked the Minister of Transport whether any date has yet been fixed for the abandonment of the South London trams and their substitution by buses; whether this is to take place gradually; and whether he will publish the proposed time-table in the OFFICIAL REPORT.
It is expected that the conversion of the South London trams to bus operations will start in the autumn of this year, and that the programme will be completed in 1952.
Pedestrian Crossings
41.
asked the Minister of Transport on what grounds he has now decided that a pedestrian has the right to cross the road at a controlled crossing when the lights are green to the motorist, which is contrary to his previous decision.
I am sorry if there appears to have been any inconsistency in my statements on this matter, but it is by no means a simple one. The existing regulations give priority to the pedestrian who has started to cross on a controlled crossing before traffic has been permitted by a signal to proceed over the crossing. This would be straightforward if it was not necessary to take into account turning traffic and traffic at complex junctions. I had hoped by revising the existing regulations to define precisely the respective rights and obligations of pedestrians and motorists at controlled crossings in all circumstances in clear and simple language, but this has not proved practicable. For this reason, as I explained to my hon. Friend the Member for Leicester. North-West (Mr. Janner), on 27th March, I may have to deal with the problem by giving guidance on the subject in the Highway Code.
Will the Minister do his best to expedite these regulations, because the public do not know where they stand? Is he aware that on 15th November, 1948, in reply to Vice-Admiral Taylor, he said:
It now appears that only the other day the Minister said exactly the opposite. Could he, therefore, issue the regulations as soon as possible?"No, Sir, the pedestrian has not that right when the lights are against him."—[OFFICIAL REPORT, 15th November, 1948; Vol. 458, c. 3.]
I have already explained that so far my legal advisers and the police cannot agree on simple and clear language that would make the position plain to the public. That is why it is probable that this will have to be dealt with in the Highway Code.
Does that imply that when it is dealt with in the Highway Code the language will be neither sensible, simple, nor clear?
It is quite possible to give general guidance without a legal definition. After all, the Highway Code is taken into consideration by the courts, and yet they are not bound by definite legal language.
When the Minister reviews the present arrangements about pedestrian crossings where there are lights, will he also try to make clear what is the position where there are pedestrian crossing and no lights, as there is still a great deal of confusion?
In that case the position is plain: the pedestrian has the right.
Level Crossings
44.
asked the Minister of Transport whether he has yet received the report which, in February, 1949, he asked the Transport Commission to submit on the question of occupational level crossings; what steps he proposes to take to bring the legal position of people using such crossings into line with modern practice; and whether he will make a statement.
No, Sir, but I am informed that considerable progress has been made in the study of the legal and practical problems involved, and that the British Transport Commission expect to be able to send to me in the course of the next few weeks the report which the Railway Executive are preparing.
Is the right hon. Gentleman aware that the answer which he has just given is only a slight elaboration of the answer he gave over a year ago; and will he say whether it is the policy of the Commission to allow their decisions to mature as long as possible in the hope that they will improve?
Government Trading Operations
45.
asked the Prime Minister whether in view of the international friction caused by inter-Government trading, as exemplified by the recent dealings with the Argentine over meat, he will consider the present policy of Government trading in food and raw materials.
No, Sir.
Is the right hon. Gentleman aware that one of his colleagues recently described the trading behaviour of a country with whom we are in friendly relations as "blackmail"? Does he realise that language such as that, whether justified or not, is bound to produce bad blood and international friction, which would be avoided if these transactions were left to private traders—who, incidentally, would do the job very much bettor?
When my right hon Friend is considering this matter, will he also bear in mind the importance of avoiding any friction with the Commonwealth, and that almost the first act of the new Commonwealth Government of Australia was to ask that bulk purchase agreements should be increased from five years to 15 years?
Does the Prime Minister realise that the case of the Argentine is by no means the only one in which Government trading operations have resulted in ill-feeling in disproportion to a new contract, and that this is one of the most valid reasons for giving up State trading?
No there are a number of very good reasons to the contrary, and a number of incidents, far more numerous than the hon. Gentleman his recited, in which there are most excellent relations with other Governments just because of bulk trading which benefits both sides.
It the right hon. Gentleman will not answer the supplementary question put to him by my hon. and learned Friend the Member for Wirral (Mr. Selwyn Lloyd), will he answer this question: Can he tell the House whether either he or the Foreign Secretary were consulted before the Minister of Food used this language?
Perhaps the hon. Gentleman will put down that question it does not arise on the Question asked.
When will the Prime Minister and the Government realise that bulk purchase inevitably means bulk selling, and that it is the main cause of high prices and shortages? When will he allow business to revert to people who know their business, instead of being undertaken by a lot of bureaucrats?
Commonwealth Sugar Supplies
29.
asked the Minister of Food if he has any statement to make about the progress of the Commonwealth sugar negotiation.
I will, with permission, make a statement at the end of Questions.
I think the hon. Gentleman said he would, with permission, make a statement at the end of Questions. I have had no request for permission for the statement to be made. No Question can be answered at the end of Questions unless it is with my permission.
I apologise most profusely. Sir. My information was that that permission had been applied for and conceded.
To whom?
I think the hon. Gentleman should get on to his Department and tell them to be a little more accurate.
Again I apologise, Mr. Speaker. I will most certainly do that.
May we take it. Mr. Speaker, that you will give the permission now?
Probably it is a long statement, and we had better take it afterwards. I have made my protest, and I hope that the hon. Gentleman and his Department will take notice of it.
At the end of Questions—
On 16th January, 1950, my Department issued a full statement dealing with the offer which the Government had made to Commonwealth sugar producers and I will arrange for a copy of this statement to be circulated in the OFFICIAL REPORT. Briefly, it said that we should continue to find a market for all Commonwealth sugar available for export up to and including 1952. We had asked Commonwealth producers for the time being not to plan to increase their exports during the five years beginning in 1953 beyond the figure of 2,350,000 tons of which the share of the Colonies was 1,550,000 tons. We had offered to buy 1,100,000 tons of Colonial sugar a year during the five years in question at reasonably remunerative prices to be negotiated annually.
Provisional agreement has been reached on these proposals with all Commonwealth sugar-exporting countries except the West Indies. Our offer to the West Indies was to buy 640,000 tons each year at the negotiated prices, out of total exports planned provisionally at not more than 900,000 tons. A conference of repre sentatives of West Indian legislatures and of producers and workers in the sugar industry met in Grenada in February, 1950, and requested His Majesty's Government to receive a delegation of members of legislatures and representatives of labour to press for an increase of the figure of 640,000 tons to 725,000 tons. His Majesty's Government have considered this request most carefully. They appreciate the importance of the sugar industry in the economy of the British West Indies, but the offer already made, after prolonged discussions, took account of this and of the many other considerations which bear on this subject and is final. If after consideration of this statement it is still desired that a delegation should come to the United Kingdom His Majesty's Government will be willing to receive it, but they regret that they can hold out no prospect whatever of amending their offer. His Majesty's Government have given further consideration to the position of British Honduras as a potential exporter of sugar. Great importance attaches to the development of British Honduras not only in the interests of the people of that colony, but in the hope that it will provide some outlet for surplus populations in the island Colonies of the British West Indies. The Evans Commission laid great emphasis on the value for this purpose of establishing a sugar industry in British Honduras. His Majesty's Government therefore agree that the aggregate amount of Commonwealth sugar exports planned for the five years beginning in 1953 shall be increased to 2,375,000 tons, and that British Honduras shall be entitled to export 25,000 tons of sugar annually, of which His Majesty's Government will undertake to buy 18,000 tons a year at reasonably remunerative prices to be negotiated annually.While thanking my hon. Friend for this very important statement, may I ask how the figures of 640,000 tons and 900,000 tons to which he referred compare with the pre-war and present exports from the West Indies to the United Kingdom, and what are the total exports from the West Indies?
The total exports before the war were 549,000 tons, of which 247,000 tons came to the United Kingdom. The total exports for 1949 were 690,000 tons of which 363,000 tons came to the United Kingdom.
Whatever the final decision of the Government may be on this subject, would it not have been wiser and more courteous, in view of the very representative character of the delegation who wished to come here, to have allowed them to come and discuss it, rather than to have said, "You can only come on the condition that the Government's mind is already made up"; and is not the natural feeling which they would have about that likely to be increased by the statement which the hon. Gentleman has just made about British Honduras, which appears to show that there is some pool of non-Commonwealth sugar from which additional allocations can still be made?
If the suggestion of the right hon. Gentleman is that the West Indies are now faced with a fait accompli, that would be quite wrong. There have been prolonged negotiations on this matter. Of course, other Commonwealth sugar producers are concerned to the extent of very large tonnages. For example, Australia, 600,000 tons; South Africa, 200,000 tons; Mauritius, 475,000 tons; Fiji, 150,000 tons. If this tonnage is not agreed and if concessions are made to the West Indies, these other Commonwealth exporters will demand consideration on the same scale, and therefore—
Why not take all the sugar?
—we feel that on the whole this is a very fair agreement, and that it is as far as we can go.
Since the hon. Member has found it possible to make an extra allocation of sugar in the case of British Honduras without, presumably, having any ill effects on the other Colonies, why is it not possible to have an adequate allocation for the British West Indies?
This, of course, does raise very large issues, as the right hon. Gentleman will understand. Britain cannot be a high price consumer and a low cost producer. Therefore, this question has to be viewed in relation to our need to be able to export at competitive prices. There has been a good deal of research and development in the field of sugar production over the last few years, and we are, it is true, keeping a reserve pool, so to speak, to the end that our friends may be induced to make use of all that wealth of research and knowledge that the march or science has made available. In other words, if we are to take the surplus it must bear some relation to world prices.
Will my hon. Friend bear in mind that the resettlement of British Honduras envisaged by the Evans Commission is of only a relatively small number of people from the islands over a period of 10 years? Will he also bear in mind that although it may not be desirable ultimately that a country like Jamaica should be based on a one-crop economy, none the less it is a fact that Jamaica is much more exclusively dependent on sugar exports than a great Dominion such as Australia?
I beg to assure my hon. Friend that we accept that, and that it has been taken fully into consideration in arriving at this figure.
Why should we still be tied to Cuba as a source of supply of sugar, when our own Colonies are restricted in their production and devaluation of the £ sterling has imposed very great hardship on some of our West Indian countries owing to the fact that they have to deal with dollar areas? Will the hon. Gentleman allow these facts to be taken into consideration, and ask this delegation to come to this country and consider the whole problem concerning the West Indies?
We should be very happy indeed to take very much more sugar than we are at present getting from Commonwealth suppliers. I do not want to appear discourteous to our West Indian friends. If they feel, in the light of all that has been said, that they still want to come, then, if they come, we shall be happy to receive them, but I hope they will not come at any rate, until the end of April.
May I ask either the Leader of the House or the Prime Minister—as I do not think any of us feel very happy about the proposition that representatives of the West Indies may come here but find that all has been settled before they arrive—whether, in view of the immense importance of this question to their economy and the admitted increased difficulties they have had to face since devaluation, the Government will not reconsider this question, invite them to come and reserve a final decision until after discussions have taken place with the West Indian representatives?
This matter was very carefully considered. We had to make a balance between the various Commonwealth countries with the greatest care. Obviously, we did not wish to deny the right of our friends in Jamaica to come and talk with us if they wished, but it would really be wrong to suspend the negotiations for the purposes of that delegation; otherwise we shall prejudice the balance with other Commonwealth countries, and the rights of these countries to argue their case. That was the difficulty we were in. On the other hand, when we finally had to consider whether, if they sent representatives, we should talk to them or not, we felt we had to say to them that we could not hold out hope that they would get additional orders.
Is it not a fact that there is a very considerable pool not allocated to Commonwealth countries that could be allocated without interfering with anyone's share. Can the right hon. Gentleman assure the House that there is no secret undertaking given to Cuba as to the amount of sugar we are to purchase from her, which prevents an extra allocation within the Commonwealth?
I do not know anything about a secret undertaking to Cuba. There is a margin, it is true, but it is quite a limited margin. I venture to say that it is desirable, in the interests of the consumer, that there shall be some free play in the markets in order that we can check up on bulk purchase agreements. I would remind Members opposite that at the election they denounced the whole of this bulk purchasing business, but that they are now complaining there is not enough of it.
Does not my hon. Friend think it is somewhat unfair to compare the position of the West Indies today under the proposed agreement with the pre-war position, since under the prewar position the West Indies were suffer ing from an acute depression, and that therefore the comparison from their point of view is not a fair one, although it may be fair from the point of view of Dominions such as Australia? In the second case, if we are to judge the wisdom of this decision to reject proposals made at the West Indian conference, will my hon. Friend tell us what expansion in sugar production in the West Indies is envisaged under this proposal, so that we may judge whether, under the guaranteed arrangement to be provided by these proposals, there shall be a full opportunity for the expansion of the sugar industry in the islands?
As I recall it, the expansion as compared with pre-war, taking from 1935 to 1938 and averaging it, is very substantial. It is certainly in the neighbourhood of 350,000 tons to 400,000 tons. We have taken very carefully into account all that my hon. Friend has said before arriving at this figure. We have done a good deal for the West Indies. Before the war, the only protection they had was £5 a ton preference, whereas today they are being guaranteed a market for 71 per cent. of their production.
Has the hon. Member taken the trouble to find out how strong have been the expressions of public opinion in the West Indies of the negotiations up to now? Does he realise what a very bad effect it will have on Imperial relations if the elected delegation of this Colony comes over to this country and the Government refuse to do anything except entertain them?
Yes, Sir.
Will my hon. Friend say, in view of our urgent need for more sugar, how it comes about that he has put a ceiling of 640,000 tons on the West Indian production, whereas in 1948 we were importing no less than 790,000 tons? What is the reason for this considerable reduction in the amount permitted under this agreement from the West Indies?
I must point out that we shall not be getting from the Commonwealth, including the West Indies, the tonnage of sugar we should be very happy to take, not even at the end of 1952.
Why not take the lot?
In view of the fact that we export quite a considerable amount of sugar from this country in the year, will the hon. Gentleman say whether the result of this new proposal will be that we shall be exporting or re-exporting more sugar than we were before, or shall we give more sugar to the consumers who really want it?
We shall certainly hope to export as much. It is very important that we should maintain our export market, but it has to be pointed out that included in this tonnage allowance is 300,000 tons for Canada. We guarantee it, but Canada does not guarantee us that she will take it. There is an element of risk even in the figures which are complained of.
At the end of it all are the people of this country going to have their sugar ration increased? Is it going to remain the same or is it going to be decreased?
That is a different question.
Is the hon. Gentleman aware of the very serious political consequences which might follow from the announcement he has made, and that in the eyes of many people in the West Indies, rightly or wrongly, the good faith of the Government is involved in view of the statement made by the Minister at the end of the negotiations last summer? What action does he propose to take to make sure that our good faith is re-established in the eyes of the population of the West Indies?
All fair-minded persons who have any knowledge of this subject are bound to recognise that the Government's proposals are eminently fair.
Will the hon. Gentleman tell the House what the Government are doing to persuade the sugar importing Dominions—he mentioned one, Canada—to give an undertaking to give priority to Empire sugar to stop overproduction in the period ahead?
As well as ourselves, Canada gives a very substantial preference.
Is not the truth of the whole matter that the Government are deliberately limiting the sugar ration, because an increase in it would involve an extra food subsidy and the Chancellor of the Exchequer will not allow it.
No, that is not true.
Following is the statement:
The Ministry of Food issued the following statement today following the close of consultations with Commonwealth countries on the future sugar policy of His Majesty's Government in the United Kingdom. The United Kingdom Government was represented at these discussions by officials of the Ministry of Food, Commonwealth Relations Office, the Colonial Office, the Board of Trade and the Treasury:
During the war by 'arrangement with the Canadian, New Zealand and Ceylon Governments and with the Governments of Malaya and other sugar-importing Colonies, the Ministry of Food made itself responsible for procuring the whole of the imported sugar supplies of these countries in addition to providing for the United Kingdom's own needs.
On the 22nd September, 1948, in order to encourage sugar production in Commonwealth countries and help to remedy the sugar shortage in the United Kingdom and in the countries for whose supplies the Ministry of Food was still responsible, the Parliamentary Secretary to the Ministry of Food announced in the House of Commons that the United Kingdom Government guaranteed to find an outlet either in the United Kingdom or in the Commonwealth for the whole exportable surplus of Commonwealth sugar producers until the end of 1952.
Shortly afterwards representatives of the West Indian sugar producers pressed for an extension of this guarantee beyond the end of 1952 and in the summer of last year the United Kingdom Government undertook to enter into discussions with Commonwealth producers in the autumn with a view to making long-term arrangements which would assure them a market beyond 1952 for agreed tonnages of sugar at reasonably remunerative prices to be negotiated with the producers. The United Kingdom Government stated that it was its declared policy to maintain and improve the economy of the Colonial territories and that where, as in the British West Indies, sugar production is the main and indispensable basis of a healthy economy, this would be given special consideration in fixing the quantities of sugar to be covered by these arrangements. Discussions with this end in view have been in progress in London since the 21st November.
The United Kingdom's arrangement with the Canadian Government terminated at the end of 1949 and the Canadian sugar refiners are now free to buy their raw sugar where they can get it most cheaply. Similarly New Zealand, Ceylon and the sugar importing Colonies may when supplies of sugar become plentiful, wish to purchase their sugar for themselves in their own way and no longer expect the United Kingdom to procure it for them. The only market, therefore, for which the United Kingdom is able to give a guarantee to Commonwealth producers from 1953 onwards is the United Kingdom market.
Accordingly the United Kingdom has offered to Commonwealth producers a five-year contract from 1953, making, with the unexpired portion of the present guarantee, eight years in all. Until 1952 the United Kingdom will continue under the existing guarantee, to find a market for the whole exportable surplus of Commonwealth producers. From 1953 onwards to 1957 the United Kingdom has offered to guarantee a market in the United Kingdom at reasonably remunerative prices fixed annually for a total of 1,550,000 tons, 1,100,000 tons from the Colonies, 300,000 tons from Australia and 150,000 tons from South Africa.
In the light of information as to increased costs submitted by the producers, a price per ton 12 per cent. above the 1949 price has been offered for the 1950 crop, and any reasonable further increases of cost, together with all other relevant factors, will be taken into account in fixing the prices to be paid in future years. The precise basis for fixing these prices is still the subject of negotiation between expert representatives of the producers and the Ministry of Food.
The existing undertaking encourages expansion of Commonwealth sugar production for export without setting a limit, but since the preferential market for Commonwealth sugar is limited, the United Kingdom Government has suggested to Commonwealth producers that, as part of the proposed agreement, they should undertake for the time being not to plan to expand their exportable surpluses beyond a figure of 2,350,000 tons. The Colonies' share of this total is 1,550,000 tons, which compares with their pre-war present, and prospective export figures as follows:
Tons.
| |
Pre-war average (1935–38) | 960,000 |
1949 | 1,200,000 |
1952 | 1,400,000 |
Hence, under the arrangements proposed by the United Kingdom, the Colonies could lay their plans up till 1957 on the footing that they had an annual export of 1,550,000 tons, or 350,000 tons more than their exports today and 150,000 tons more than their expected exports for 1952. Of this total, 1,100,000 tons would consist of guaranteed sales in the United Kingdom. For the balance above the amount covered by the guarantee, they should find a market either in the United Kingdom or in Canada, since in both these markets the preferential rate of duty gives a considerable advantage to Commonwealth sugar over foreign sugar.
If these arrangements were agreed to and carried out, and assuming that the United Kingdom by 1953 will be able to purchase all the sugar it needs, annual imports from the Colonies into the United Kingdom market would from 1953 onwards be about 100 per cent. more than they were on the average of the years 1935 and 1938. Imports from foreign countries would fall to less than 10 per cent. of the United Kingdom's total requirements of sugar, or no more than one-third of the pre-war quantity.
The United Kingdom is under an obligation to the United Nations to enter into negotiations when the time is ripe for the framing of a new International Sugar Agreement. Pending such negotiations the United Kingdom Government feels bound to reserve some part of the United Kingdom market uncommitted.
His Majesty's Government realises that its offer does not completely fulfil the desires of some of the producers concerned. There are numerous conflicting interests which it has been impossible to reconcile to the satisfaction of all parties, but the facts stated above show that there is no foundation for the view advanced in some quarters that the offer involves the restriction of Colonial sugar production in order that the United Kingdom may buy a greater proportion of foreign sugar. The figures given in this statement show that exactly the reverse is the case. All that the United Kingdom is doing in the way of limitation is first to place certain limits on the amount of sugar which they are prepared to guarantee to take at a fixed price negotiated each year, and secondly to ask Commonwealth producers for the time being to place certain limits on their expansion programme after 1952.
It would be unreasonable to expect the United Kingdom to undertake for eight years ahead to purchase unlimited quantities of any commodity on the basis of a guaranteed price. The quantities covered can be revised upwards if circumstances permit, but there is no question of revising them downwards during the period of the eight-year agreement. The offer made represents a greater degree of security than the Colonial producers have had at any previous time. Before the war the total exports of the Colonies amounted to 960,000 tons, the whole of which was without guarantee and had to compete in world markets apart from the protection afforded by Commonwealth preference. The Colonies' export today is 1,200,000 tons. By 1952, on present expansion plans, it will be 1,400,000 tons.
If they accept the present offer, the Colonies will be entitled in 1953 and for four years after that to export 1,550,000 tons. Of this total, 1,100,000 tons, representing no less than 71 per cent., will be shipped to the United Kingdom with a price guarantee giving them ample protection against any risk of a collapse in world prices. The balance they will be free to sell to their best advantage in the market and in so doing they will enjoy the full benefit of the Commonwealth preferential rates of duty. In these circumstances, His Majesty's Government feels that by this offer it has fully implemented the pledges given in the communique of 10th August.
Australia and South Africa have accepted the offer subject to some reservations which remain to be settled. Replies are awaited from the Colonies.