House Of Commons
Monday, 12th February, 1962
The House met at half-past Two o'clock
Prayers
[Mr. SPEAKER in the Chair]
Private Business
Largs Burgh Order Confirmation Bill
Considered; to be read the Third time Tomorrow.
Oral Answers To Questions
Pensions And National Insurance
Pensions And National Assistance
2.
asked the Minister of Pensions and National Insurance if he will state the present relation between rates of old-age pensions, National Assistance and the cost of living in terms of cash and percentages, respectively.
On the basis of the Retail Prices Index, the value of the retirement pension in real terms in December, 1961, was 15s. 8d. single and 22s. 9d. married above that current in October, 1951. Expressed as percentages this represents an improvement of 37 and 33 per cent., respectively. The corresponding figures for National Assistance scale rates are 11s. 8d. and 20s. 3d., representing an improvement of 28 and 29 per cent., respectively.
While thanking the right hon. Gentleman for the detail of his reply, may I ask whether he realises that a very complicated situation has been created by the increased cost of living, by the increased cost of transport, and by the so-called economic pause, and that that has increased the great injustice on a class of people who deserve better treatment? Will he take that into account with a view to rectifying the situation and giving them better treatment?
It was in order to eliminate any possibility of confusion on those grounds that, as the hon. and learned Gentleman will see when he studies my Answer, the figures were given in real rather than in cash terms.
Retirement Pensioners
3.
asked the Minister of Pensions and National Insurance why statistics relating to the numbers of retirement pensioners are not available for particular areas; and if he will take steps to obtain them.
Because records of our 5½ million retirement pensioners are held centrally. Great expense and delay would be involved in breaking up the figures in relation to particular areas in which pensioners reside, and in keeping them up-to-date as pensioners move. The answer to the last part of the Question is, therefore, No, Sir.
Does the right hon. Gentleman remember that in a recent Answer to me he admitted that there was a very serious gap in his information services with regard to the matter referred to in my Question? Will he look into this again with a view to seeing that the fullest possible information is available to old-age pensioners and to the other people affected by that gap?
I do not think that that Answer of mine agreed with the hon. and learned Gentleman that there was a serious gap because the figures available about the numbers of pensioners do not coincide with Parliamentary constituencies.
7.
asked the Minister of Pensions and National Insurance if he will study the experience of two clinics in London and Scotland, details of which have been sent to him, regarding the under-nourishment of many old-age pensioners; and if he will institute a national inquiry into the matter.
I have seen with interest reports on these two clinics at Twickenham and Rutherglen, which deal with the general physical and mental health of the old. There is nothing in them, however, to suggest that existing sources of information on nutrition are inadequate.
Is it not clear from the experience of these clinics that the pension of £2 17s. 6d. is so low as to cause under-nourishment and ill-health to many elderly people? Should not the basic pension be sufficient at least to provide enough to eat?
The hon. Member may know that the report made in respect of the Rutherglen clinic specifically stated that malnutrition was not a problem of any magnitude. Taken as a whole, I think that that is the inference to be drawn from both these clinics.
The right hon. Gentleman has read the script. Is it not clear that half of the 300 people regularly attending the London clinic are suffering from under-nourishment because of lack of money? Is it not clear that when they are provided with a better diet, supplementary foods and so on, their health and whole bearing alter?
The hon. Member is referring to the script of a certain broadcast to which he was good enough to draw my attention. The value of that broadcast is easily gauged when one recalls that in the course of it there was presented an old lady who was said to be an example of pride preventing an application for National Assistance but who, the National Assistance Board tells me, was much more sensible than the producer of the broadcast and had been drawing it for years.
Would not the Minister agree that food represents a much higher percentage of the total outlay of old-age pensioners than of the average member of the community? Does it not follow, therefore, that from time to time and at frequent intervals there should be a new survey to make quite certain that even the slightest change in the cost of living does not produce a serious situation for old-age pensioners? Will he look again at the need for a further inquiry?
The hon. Member will be aware of the considerable sources of information which we have. There is the fact that in the course of a year the officers of the National Assistance Board pay no fewer than 6 million visits to peoples' homes, and the fact that a very careful survey, with a special category in respect of pensioner households, is produced by my right hon. Friend the Minister of Agriculture, Fisheries and Food.
Have the right hon. Gentleman's sources of information on this question and the general circumstances of pensioners led him to the conclusion that we should be perfectly satisfied with the present rates of pension and National Assistance?
The Government will never be satisfied. As the hon. Member knows, it is part of our policy to see that pensioners share in the increasing prosperity which the sound economic measures of my right hon. and learned Friend will bring about.
Since he is never to be satisfied, does that mean that at the moment the right hon. Gentleman is dissatisfied? What will he do to remove that dissatisfaction?
You will allow me, Mr. Speaker, to put it in the form of a quotation and, therefore, I hope, be in order—
"None of your damned Scottish metaphysics".
13.
asked the Minister of Pensions and National Insurance to what extent the policy set out in Command Paper No. 1626, paragraph 7, that the increased cost of living cannot in the present circumstances be regarded as providing a sound basis for an increase of wages and salaries, will affect the basis on which increases are given to retirement pensioners.
The factors affecting the decision as to what is the appropriate level for contributions and benefits under the National Insurance Scheme were fully set out in a reply which I gave to the hon. Member for Salford East (Mr. Frank Allaun) on 14th November, 1960.
May I ask my right hon. Friend whether consideration will be given to increases in pensions after 1st April? I think my right hon. Friend will agree with me that these pensioners have been very patient. As far as I understand, they have not brought any deputations to try to get increases. They have observed the pay pause. Can my right hon. Friend give them any hope for the future?
My hon. Friend will be aware that the rate of retirement pension was raised as recently as last April to the highest level in real terms yet reached.
Is not the Minister aware that the rise in the cost of living and the increases in wages, profits and dividends since the last increase in old-age pensions justify him giving some increase to the old-age pensioners now?
I am surprised at that suggestion by the hon. Gentleman, in the face of the fact that the level reached as recently as last April was the highest in real terms yet attained and that the level today is higher than at any time previous to that.
What is more to the point is what are the Government's intentions towards retirement pensioners and other National Insurance beneficiaries in the next phase of the pay pause? Is the pension pause to come to an end when the pay pause comes to an end? What is the intermediate phase for pensioners in relation to the intermediate phase for wage and salary earners?
The Answer to which I referred my hon. Friend in my main Answer is clear as to the considerations affecting decisions on this matter.
That means, according to the Answer to which the right hon. Gentleman referred, and which I have here, that the cost of living still remains the first factor to be considered.
The cost of living is certainly one of the factors to be considered with the others enumerated in the Answer with which providentially the hon. Gentleman has armed himself.
War Disability Pensions
4.
asked the Minister of Pensions and National Insurance in how many cases in the 12 months to the latest convenient date applications for war disability pensions have been made and refused under the seven years' rule which places the onus of proof upon the applicants.
The latest available estimated figures are those for the year ending 30th June, 1961, in which some 1,250 claims made over seven years after death or discharge resulted in awards and some 1,460 were rejected.
Will the right hon. Gentleman reconsider the position in relation to this rule, in view of the fact that the Statute of Limitations was provided to be used normally as a reasonable device to prevent fraudulent claims, or claims made after so long a period that the evidence has been destroyed? In his case, the right hon. Gentleman nearly always has all the evidence, and this rule is being used to prevent applicants from maintaining a claim from chronic diseases the causes of which are unknown.
A good deal of that supplementary question relates to the next Question to be asked by the hon. Gentleman. However, it does not seem to me that the figures I have just given the hon. Gentleman, when one remembers that they relate to service which in the great majority of cases ended at least 16½ years ago, indicate that there is anything the matter.
5.
asked the Minister of Pensions and National Insurance whether, in view of the hardship caused to applicants for war disability pensions caused by the seven-year rule, he will now introduce measures for its abrogation.
As the hon. Member is, I am sure, aware, even in the case of claims outside the seven year period the claimant is entitled to succeed if on the evidence there is any reasonable doubt whether the conditions are satisfied. I do not think there is any hardship. On the contrary, this procedure compares favourably from the applicant's point of view with procedure in the civil courts or before other tribunals, and is an example of the preference deliberately, and, in my view, properly, accorded to disabled ex-Service men.
Would it not be more simple, practical and prudent for the right hon. Gentleman to obtain the necessary sanction to send a circular to pensions tribunals and appeal tribunals to say that they were under no obligation to apply this rule in cases where they considered that great hardship would result or where the operation of the rule might prevent justice being done?
I could only consider that if I were satisfied that the present rule was working unfairly and inequitably. As I have said, I do not think that it is.
I will bring a case along to the right hon. Gentleman.
Gypsies, Darenth Woods
6.
asked the Minister of Pensions and National Insurance what was the total amount of National Assistance paid to gypsies and other travellers in Darenth Woods, near Dartford, for the two weeks ended 20th January prior to eviction; and what was the comparable amount for the two weeks ended 3rd February following eviction to the grass verge of the A.2 trunk road by the Dartford Rural District Council.
£37 12s. and £288 2s., respectively.
Does not that information, for which I thank the right hon. Gentleman, show, when only six people out of 300 were on National Assistance, how unjust it was to say that they were lazy layabouts living on public funds? Does not the sharp increase in the number on National Assistance after they were evicted emphasise the callousness of the local council which, in the middle of winter, put them on the side of a trunk road, where it was particularly difficult for them to earn their living?
I am responsible only for what I say and, as the hon. Member will realise, I never said anything of the sort. It is not for me to comment on the operations of a local authority.
It is pretty obvious, though.
12.
asked the Minister of Pensions and National Insurance what decision has been reached by the National Assistance Board about the need for assistance for the purchase by the owners of oats, chaff and hay in order to avoid undue suffering for the 25 horses and one mule which, because of the dangerous traffic hazards, have to be tethered for long periods by short lengths of chain on the verge of the A.2 trunk road, near Dartford, as the result of the eviction of the gypsies from Darenth Woods by the Dartford Rural District Council, on 20th January.
The Board informs me that it has so far made no payments for this purpose. Applications from the gypsies who are receiving assistance for the maintenance of their families, on the grounds that the payments made to them are insufficient to meet all their commitments, have been and will be considered in the light of all the circumstances.
I thank the right hon. Gentleman for that statement, but will he keep very much in mind that to a gypsy, whose home is on wheels, a horse is very important and must be kept in good condition? After three weeks by the side of the road some of these horses are looking half-starved, and if the position—which is revolting in Britain in 1962—continues very much longer, there will be suffering amongst some of the animals due to the callousness of the local council.
In general, of course, relief of hardship amongst animals is not one of the responsibilities of the National Assistance Board, and I therefore prefer not to add to the Answer which I gave. As the hon. Gentleman is well aware, a great deal of what he said in that supplementary question, whatever its merits or demerits, is not for me.
Benefits
8.
asked the Minister of Pensions and National Insurance what proposals he has for amending the regulations relating to persons who are off work through illness and who, due to these regulations, lose the first three days of benefit, because they are off for a period of less than 14 days.
None, Sir.
Is the right hon. Gentleman aware that pursuance of this policy appears to be "penny wise and pound foolish", inasmuch as many people who have slight illnesses stay away from work for the whole fourteen days merely in order to get the benefit of the three days' waiting time? As that is not in the national interests, would it not be wise if the Minister reconsidered his policy?
The hon. Member will know that there have been waiting days in respect of sickness benefit since National Insurance began. Indeed, before 1948 they were absolute, whatever the ultimate period of sickness. I am bound to say that nowadays, when more and more good employers make up wages for considerable periods of sickness, the case for doing away with waiting days is weaker than it ever was.
European Economic Community
10.
asked the Minister of Pensions and National Insurance whether he will publish a comparative table of old age or retirement and other pensions being paid in Great Britain and in the six countries in the European Economic Community, on the basis of information made available to him in the course of the current negotiations for British entry into the Common Market.
The social security provisions of the members of the European Economic Community are, of course, fully publicised, and no additional information has been or could have been made available in the way suggested. The remaining part of the Question does not therefore arise.
Do I understand that the Minister will not publish the comparative statement for which I have asked and is merely referring me to other authorities? Is he not aware from recent publications that the rate for Belgian old-age pensioners has been raised to a much higher comparative level than ours? Is he making no preparation to meet the needs of the Six when we join them, when we shall have to harmonise our social security schemes upwards so as to meet the highest prevailing among them?
The last part of that question goes far beyond that on the Order Paper. The hon. Member asked me to publish information on the basis of that made available to me in the course of negotiations. What I have said is that no such information has been or could have been produced in that way, because it has already been published. If the House wishes, I am quite prepared to place in the Library a statement of the social security arrangements of the Six, although I must warn the House that it will be extremely bulky as these schemes are very elaborate and detailed, and that the comparison which the hon. Member desires is extremely difficult to make because of the differences in relationship to earnings and as to cover.
National Assistance Board
11.
asked the Minister of Pensions and National Insurance whether he will alter the name of the National Assistance Board to Supplementary Pensions Board.
No, Sir.
Is the right hon. Gentleman not aware that many decent people, poor but proud, still believe, however illogically, that there is some stigma about applying for National Assistance? We all come across cases of that kind. Would it not help these deserving citizens if the name were changed as I have suggested, as it is obvious that it is impossible to live on the present basic scale of pension without some form of supplementation?
There is something in what the hon. Gentleman says, but his suggestion is not practicable when one remembers that the National Assistance Board makes about 700,000 weekly payments to people who are not receiving a pension to which this could be a supplement. I think that we have already largely met the substance of the matter by renaming the order books on which supplements are paid to retirement pensioners.
Bearing in mind that what we want to do is to induce people to go to the National Assistance Board, where that is necessary, will the right hon. Gentleman consider taking a long-term view of the reorganisation of local offices and absorbing local National Assistance Board offices into offices of the Ministry of Pensions and National Insurance, and so making them one local service?
I very much doubt whether that idea, which the right hon. Gentleman himself emphatically rejected in 1946, would help towards the end he has in mind. I would prefer to say that the very good reputation which the National Assistance Board and its officers have built up for humanity and discretion in their extremely difficult job is an asset which I should be reluctant to forfeit.
Ministry Of Power
Electricity Area Boards (Advertising)
14.
asked the Minister of Power whether he will give a general direction to the Electricity Council that area boards should not advertise in future until they are sure of being able to meet the demands of their customers.
No, Sir. I do not think that the percentage of the Board's gross turnover, spent on promotional advertising is excessive, and the aim of much of it is to make better use of installed plant during off-peak periods.
May I ask my right hon. Friend to confirm that in the last financial year more than £2 million was spent on advertising? Many people, especially those on Merseyside, consider this to be in the nature of a false prospectus. Will my right hon. Friend consider spending a proportion of that money on sending out questionnaires to householders to find out exactly what they have in the way of electrical appliances in their homes so that bad estimations may remain less bad in future?
The figure of £2 million is the total spent on advertising electricity. The sum spent on promotional advertising, which I think is what my hon. Friend has in mind, is £850,000, or about 0·1 per cent. of the whole turnover. As regards the second part of my hon. Friend's supplementary question, I will ask the Electricity Council to look into this and make a report to me.
Sub-Stations
15.
asked the Minister of Power whether he will give a general direction to the Electricity Council that area boards should speed up the erection of sub-stations in areas that have recently suffered from electricity power cuts or failures.
I am satisfied that the area boards are building these sub-stations as quickly as they can.
Will my right hon. Friend confirm that these sub-stations cost only between £6,000 and £9,000, and that much of this money could be provided from savings on advertisements? Is he aware that there is a general feeling in some areas that the area boards are rather complacent in this way?
I do not think that the area board in the area which my hon. Friend represents is complacent, and the chairman of the council recently gave an interview expressing concern about this matter, saying that they were pushing on with the building of sub-stations as quickly as they possibly could.
Electricity Supply Failures
18.
asked the Minister of Power if he will give a general direction to the Electricity Council to take out overall insurance policies to protect consumers whose machinery and appliances are damaged as a result of power failures.
No, Sir. Legislation recognises that some failures cannot be avoided, and in such cases the boards are protected against prosecutions for the statutory penalty. The Council is aware of this problem and is considering what can be done. It proposes first to approach the manufacturers' and contractors' associations to see if protective devices can be improved and more widely installed.
Is my right hon. Friend aware that several of my constituents have had domestic appliances damaged by voltage faults and failures? Is he further aware that the Chairman of the North-Western Area Electricity Board has said that consumers should take out private insurance policies to cover themselves against this? As the electricity boards are a nationalised monopoly, and some of the failures are due to human error, surely it is not out of the question to ask that the boards should at least take out overall policies to cover the failures due to human error by the people working in a nationalised industry?
I do not think that it is right for my hon. Friend to suggest that the responsibility should be placed on the Electricity Council, or indeed on the Generating Board, because they are not in direct contact with consumers. Area boards, which are in direct contact with consumers, have certain responsibilities and obligations which can be legally enforced, but I do not think that it would be possible to do as my hon. Friend suggests and place on area boards the responsibility for any failure for whatever reason it may take place.
Steel Works, Wales And Monmouthshire (Closures)
19.
asked the Minister of Power if he will make a statement giving particulars of the steel, tinplate and sheet works which have been completely or partially closed in Wales and Monmouthshire in the past twelve months, together with the number of workers displaced in each case.
The Iron and Steel Board has received official notification of the closure of five works in the last twelve months and, with permission, I will circulate details in the OFFICIAL REPORT.
Is the Minister aware that men are now being displaced from the old steel works long before they are absorbed into the new ones, and that the situation is becoming critical? Secondly, will he consult the Iron and Steel Board about the rather stupid policy, said to be adopted by some steel owners in the new works, of refusing to employ anyone over 50 years of age, and sometimes even over 40 years of age, thereby losing the valuable work and service of these men, so necessary to meet the economic needs of the country? Will he look into the matter? These two problems are causing deep concern in Wales and elsewhere.
I will certainly put the right hon. Member's second point to the Iron and Steel Board. As for the first, I do not think that any serious unemployment is resulting from these closures. In any case, as he knows, this is a matter for my right hon. Friend the Minister of Labour.
The right hon. Member says that no serious unemployment is resulting from these closures. Will he look at the Answer given to me by his right hon. Friend the Minister of Labour last week, in which he said that closures were causing very serious unemployment and short-time working?
I will certainly refer the right hon. Gentleman's question to my right hon. Friend the Minister of Labour, but I was informed that the unemployment that has so far resulted has not been serious.
Following is the information:
Closure of steel and tinplate works in Wales and Monmouthshire in the twelve months ended 31st January, 1962.
(i) | |
Company and Works | Number of Workers displaced
|
Richard Thomas and Baldwins Ltd. | |
Steelmaking and Billet Plant—Dyffryn | 410 |
Tinning Department—Abercarn | 87 |
Partridge, Jones and John Paton (R.T.B.) Ltd. | |
Hand sheet mill—Pontnewynnyd Steelworks and foundry—Pontymister | 327 |
Glynhir Tin Plate Co., Ltd. (Bynea Group) | |
Hand mill producing black plate | about 150 |
(i) i.e. the number of workers employed on the date of notification of the closure to the Iron and Steel Board less those still employed, mainly on residual tasks. |
Coal
Smokeless Fuels
16.
asked the Minister of Power if he will make representations to traders to reduce the price of smokeless fuels, in view of the fact that at present it is hindering the successful implementation of smoke control orders.
No, Sir. If the hon. Gentleman has any evidence that traders' margins are excessive, I will certainly consider it.
Is the Minister aware that in the cold weather many pensioners and low income families are having a hard time and going without fires because they cannot afford the fantastic prices in a smoke-controlled area, and that this is causing widespread hardship and indignation? Secondly, why should smokeless fuel cost 11s. 9d. or more a bag, and coke 10s., which is more than the price for coal, although valuable chemicals have been extracted? Coke always used to cost far less than coal.
I can only tell the hon. Gentleman that the last time this was examined, which admittedly was three or four years ago, no evidence was adduced that the margins that the merchants were charging on smokeless fuels were excessive. If the hon. Gentleman has any information and evidence that he would like me to consider, I will certainly look at it.
Prices
17.
asked the Minister of Power whether he proposes to sanction an increase in the price of coal.
Proposals for increases in the prices of certain coals used by industry were put to the Industrial Coal Consumers' Council on 27th November, 1961, and came into effect on 1st January, 1962. The National Coal Board has put proposals for certain increases to the Domestic Coal Consumers' Council and I am now awaiting the Council's observations.
As an increase in the price of industrial coal at the moment is bound to have a retarding effect on our exports, particularly shipbuilding, will the right hon. Gentleman consider this again? Does he realise that shipbuilders are now facing impending increases in the price of steel in addition to the price of coal, immensely higher valuations, and increases in the price of electricity? Does he think that this gives them a fair chance in the competitive world in which shipbuilding has to live today?
I cannot undertake to reconsider the price increase which came into effect on 1st January. As regards the other proposals for increases, I shall await the observations of the Domestic Coal Consumers' Council and then come to my decision.
On the domestic side, will the right hon. Gentleman consider particularly the case of the old folk who are paying more for coal at the present time than their meagre allowance warrants? Will he consider a preferential rate for them?
That consideration will be very much in the mind both of the Council and myself when we come to consider these matters.
Grades And Prices
20.
asked the Minister of Power when he will give effect to the recommendation of the Domestic Coal Consumers' Council that all traders should state the groups of coal they sell, irrespective of size of delivery, so as to bring abuse of grouping and price within the scope of the Merchandise Marks Acts.
I have had discussions with the National Coal Board and the coal trade about ways of achieving the objectives which the Domestic Coal Consumers' Council had in mind. Plans to do this are well advanced and I think an announcement may be made quite soon.
I appreciate the hopeful note in the Minister's reply, but will he bear in mind that the answer which is often given, namely, that the consumer has the choice of going to another merchant, is insufficient protection and does not deal with the principle of the matter? Is he further aware of the difficulties of those who purchase only small quantities of coal—2 cwt. or 3 cwt.? They have no guarantee that the coal which they purchase at the higher price is the grade of coal which they should get. The reply of the merchants is that the blame attaches to the National Coal Board, but this is quite wrong. Will the right hon. Gentleman do all that he can to defend the Board against such allegations?
I know that the hon. Member has been interested in this matter for a long time. I hope that he will be satisfied if I am able to make an announcement in the near future, and that he will also be satisfied by any scheme that I am then able to announce.
Ministry Of Aviation
Abbotsinch
21.
asked the Minister of Aviation what reconsideration he is giving to developing Abbotsinch as the replacement for Renfrew Airport.
None, Sir.
Is the hon. Member aware that development at Abbotsinch is so slow that it has not even reached the stage of crawling? Does he realise that at Abbotsinch we have 773 acres of ground as compared with 232 acres at Renfrew, and that there, if he so desires, he can develop an airport for the future—something which Britain has never yet had? Is he further aware that every airport in use today was out of date before it was completed?
The hon. Member often draws my attention to things of which I am not always totally aware, and I pay the closest attention to what he says. As to the speed of development at Abbotsinch, we expect to be able to move in there before the end of 1964. Renfrew will continue to be in operation until Abbotsinch is ready.
Is the Minister aware that on frequent occasions in recent months passengers have had to be diverted from Renfrew to Prestwick because of weather conditions? Is he further aware that the same weather problem will exist at Abbotsinch? Does not he agree that the practical solution would be to develop Prestwick?
I am sorry that my Department cannot take responsibility for difficulties of weather which are liable to occur at any airport.
All this shows the danger of giving information in Questions.
Light Aircraft (Accidents)
22.
asked the Minister of Aviation what steps he intends taking in the interests of safety to check the competence of light aircraft instructors and trainees of aircraft with an all-up weight of less than 5,000 lb., in view of the high accident rate of this category of aircraft disclosed in CAP 176 entitled "A Survey of the Accidents to Aircraft of the United Kingdom" in the year ended 31st December 1960, a copy of which has been sent to him by the hon. Member for Gillingham.
Discussions are proceeding with the Guild of Air Pilots and Air Navigators, which exercises control on my behalf over flying instructors, with the object of ensuring that a high standard of instruction is maintained. My right hon. Friend intends to make an announcement shortly.
Military Transport Aircraft
23.
asked the Minister of Aviation whether he has yet selected a close support military transport aircraft for service with the Royal Air Force.
No, Sir.
What ails my right hon. Friend? Was it not demonstrated as long ago as last May that the Handley Page Dart Herald satisfies the needs of the R.A.F. in this matter? What is he waiting for? Does not he welcome the fact that this aircraft has been developed without the aid of Government subsidies? Have the Government moved so far to the left now that they no longer view even private enterprise with favour?
This is no doubt an admirable aircraft, but it is not the only one being considered.
Is there not a very serious gap in the availability of transport aircraft for the Forces at the moment? Is it not a fact that the only short-range transport aircraft available at present either have too small a cargo cross-section or are obsolete? Is not this a matter which calls for urgent consideration?
There is a requirement for this type of aircraft, and it will undoubtedly be met.
Is it not almost a record that an aeroplane should be available for the Royal Air Force before it is obsolete?
Three types of aircraft a re available.
Ministry Of Health
Tuberculosis
25.
asked the Minister of Health what was the number of persons suffering from tuberculosis under treatment at the end of 1961; and what percentage of these were immigrants.
I will send my hon. and gallant Friend the figure for persons registered with tuberculosis clinics at December, 1961, as soon as it is available. The returns do not distinguish between immigrants and others.
I understand that in recent years there has been an increase in tuberculosis. I appreciate that my hon. Friend cannot at present differentiate between immigrants and others, but will she look into this matter carefully in the future?
No, Sir. This is a health service and we have no reason to ask for the nationalities of the people concerned.
Welfare Clinics
26.
asked the Minister of Health how many welfare clinics are operating under his Department in England and Wales; how many persons are employed by these clinics; and what is the total cost to the National Health Service.
None, Sir; this is a local authority service.
Does not my hon. Friend agree that far too many welfare clinics are operating at present? Does not she agree that in many cases these are abused, in that those who really need them do not get a look in? Surely this is one major economy the possibility of which can be looked into in the future?
I am absolutely certain from my experience of local authorities, that maternity and child welfare clinics provide an excellent service. Contrary to what my hon. and gallant Friend has stated, attendance at these clinics continues to increase.
Somerset House (Census Records)
31.
asked the Minister of Health by what criteria the Registrar-General in Somerset House grants and refuses permission for historians and genealogists to consult the census records subsequent to 1851.
Information from these records up to 1921 is supplied only with the consent of the parties concerned or their descendants.
Is my hon. Friend aware that my understanding is that up to and including 1851 these records are available to anybody and that many researchers understood that as soon as a hundred years had passed they would be open to them? The 1861 returns have not yet been revealed, which is an annoyance and an embarrassment, apparently, to many researchers.
There was no pledge of confidentiality, I understand, for censuses up to 1851, but for the succeeding decades such a pledge has been given and the records are available only for specific purposes.
Is that in perpetuity? Does that pledge last for ever?
Not necessarily. I think that perhaps at the end of a hundred years the matter might be considered, but it is a matter for the Public Record Office.
Will my hon. Friend answer a Question about it in a hundred years' time?
I should love to.
Smallpox
33.
asked the Minister of Health what was the cost of each pack of smallpox vaccine USP prepared by the National Drug Company of Philadelphia, and supplied to the National Health Service, containing ten tubes, ten capillaries of vaccine, ten scarifying needles and one rubber bulb; what was the total number imported from the United States of America during the last twelve months; and what was the total cost to the National Health Service.
100,000 packs. It is not the practice to disclose prices.
Is the Minister satisfied that this rather elaborate practice is the best way of getting this vaccine? Is he able to get supplies from British producers rather than from American?
These were a very useful reinforcement of our reserves. I can say that they were no dearer than our general supplies.
The Minister has indicated that it is not his practice to state prices. Does he not think that the House is entitled to some information about prices in respect of these huge orders of vaccines and other things necessary for the health of the people which have been ordered from abroad?
Yes, certainly, and I have answered Questions on the cost of supplies generally. But it is obviously undesirable to give the prices for particular consignments where competition between the suppliers is desirable.
36.
asked the Minister of Health when he proposes to institute a general campaign for vaccination against smallpox in Cardiff and South Wales.
This is not the intention. My policy is to encourage the routine vaccination of all infants and of adults whose work may bring them into contact with infected persons or material.
Is the Minister aware that I thoroughly disagree with him? Will he please reconsider this decision and step up the propaganda and publicity so that if there is another outbreak of smallpox we shall not experience once again long queues of worried, anxious people waiting to be vaccinated, when sometimes there are insufficient supplies of vaccine? Why not take time by the forelock in this matter?
The important thing is that, if possible, 100 per cent. of infants should be vaccinated as a routine, as part of the general immunity which children aught to be acquiring. I am glad to say that in Cardiff the acceptance rate for infant vaccination has been increasing in the last few years and is well above the level for England and Wales and for Wales. I hope that Cardiff will go on with this good work, because it is the right approach.
What is the Minister doing to ensure a higher rate of infant vaccination? Even if he is reluctant to go as far as my hon. Friend the Member for Cardiff, South-East (Mr. Callaghan) suggests, will he not at any rate see whether he can do something through the schools medical service to get children vaccinated who are amongst the 60 per cent. who were not vaccinated as infants?
Yes. There is a continuous campaign to press immunisation. I believe that each campaign for any kind of immunisation helps with the whole package. In the last few years the increase in immunisation against poliomyelitis has undoubtedly improved the figures for immunity against smallpox. This is something which has to go forward as a whole, and it is being pressed through and on local health authorities.
39.
asked the Minister of Health what machinery exists in his Department to receive, distribute and act upon information distributed by the World Health Authority regarding smallpox epidemics.
This information goes to port health authorities direct.
Is the Minister aware that the various medical officers, including the medical officers in Birmingham, are receiving the World Epidemiological Report weekly, which shows that as early as November and December there were about 300 cases a week in Karachi, with 30 deaths a week, but that they received no guidance at all from the Ministry? As late as only a fortnight ago, when an aeroplane was diverted unexpectedly to Elmdon, the medical officer of health had no guidance at all as to how he should deal with the matter, and in Birmingham he took the law into his own hands, particularly in respect of a Chinese gentleman who had travelled across the world. Is not this a ridiculous state of affairs?
There is no question of his taking the law into his own hands. The responsibility and the powers are his. This is the duty of the port health authorities, who receive regularly the information which is necessary for them to discharge it. It was only in the third week of December that the figures disseminated by the World Health Organisation showed an abnormal situation in Karachi.
46.
asked the Minister of Health which European countries are now demanding international certificates of vaccination against smallpox from British visitors to their countries; and whether he will insist on reciprocal arrangements being enforced against their nationals.
According to my information, all except Austria, Denmark, the Republic of Ireland, Norway and Switzerland. The answer to the second part of the question is "No, Sir".
Is it not a fact that there are at present serious outbreaks of smallpox in the Congo and in Liberia, and that Europeans in contact with these countries could carry smallpox when coming to Great Britain? Therefore, will not the right hon. Gentleman protect the British people against the danger of smallpox from Europeans and other travellers, instead of pretending that the only danger comes from Commonwealth immigrants?
As our experience has shown, the requirement of international certificates is in itself not a protection against the importation of smallpox. But there is in Europe hardly any smallpox at all, and, although these countries are fully within their rights under the international agreement in requiring these certificates, I do not believe that our protection would be increased by doing so.
If the international certificate of vaccination is no protection, why are France, West Germany and other countries demanding the production of such certificates from British travellers? Clearly the right hon. Gentleman is contradicting himself. Have not the British people the same right to protection from European carriers as Europeans have from British carriers?
Yes, we have the right to do this, but there is no question of reprisals in this matter. As there have been cases of smallpox in this country, these countries were entitled under the international agreement to make this requirement.
Rickets
34.
asked the Minister of Health why the figures of the number of cases of rickets in the years 1938, 1939, 1958, and 1959 are not available.
Because rickets is not a notifiable disease.
Is the hon. Lady aware of the very large decrease in the incidence of rickets in the years mentioned in the Question and the fact that one of the reasons for it, apart from the rising standards of living, has been the orange juice and vitamin resources of local welfare clinics? In view of the fact that the use of these has dropped by 70 per cent. throughout the country, will the Minister reconsider the question of the charges on vitamin foods, cod liver oil and orange juice?
I do not think that that arises out of the Question. I agree that gross deforming rickets have been disappearing, and I am very happy to note it, but when we consider the causes of rickets we find that there are a number, of which dietary deficiency is only one. There has been a survey of cases of rickets caused by dietary deficiency, and I understand that figures are being obtained for 1960 and the first half of 1961, so that some information should be available in the future.
Chemists (Accounts)
44.
asked the Minister of Health what delay there has been in the repayment by his Department of chemists' accounts in recent months; and if he will make a statement.
So far as I know, twelve executive councils in the last three months have been unable to pay the full amount due by the normal date. I understand that the delay nowhere exceeded four weeks. In all these cases substantial payments on account were authorised by my Department.
My right hon. Friend will recognise that this has come just at a time when the cut in remuneration is taking effect, which is unfortunate from the point of view of public relations? Could my right hon. Friend make it clear that any individual case where a pharmacist is embarrassed can be met by the executive council, in an individual case and not in relation to the whole of the community, making a payment on account?
My Department is always ready to authorise payments on account when executive councils apply for them. My hon. Friend will, I know, recognise that the problem here—and it arises particularly in these months—is the abnormal sickness and staff losses in the pricing offices.
Whitley Councils (Pay Claims)
47.
asked the Minister of Health on how many occasions during the last six months he has sought deferment of the consideration of pay claims by Whitley Councils, or otherwise intervened in the normal processes of negotiation.
I have on two occasions asked management sides to seek deferment pending further guidance to my representatives. I do not accept that this is intervention in the normal processes.
How does the Minister reconcile these actions with the assurance that he gave in the communication that he sent last August to Whitley Councils in which he said that normal negotiations should proceed subject only to a reservation about the date of implementation? Does he think this sort of action is going to encourage confidence in the Whitley system?
It is a normal feature of these negotiations that the management side and my representatives on the management side should wish to take my guidance, and there may be circumstances in which that necessitates my asking for a deferment.
It is a different matter if the management side asks for the right hon. Gentleman's guidance, rather than the right hon. Gentleman himself initiating this kind of delay.
It depends on the management side. I can only request them to make a deferment and they have to consider whether it is reasonable to do so.
Hospitals
Nurses
30.
asked the Minister of Health what is the present shortage of nurses in hospitals; and what plans he has to recruit sufficient nurses to meet the requirements of his new hospital plan.
No precise estimate of shortage can be given; but I understand that just under 20,000 vacancies for hospital nurses of all grades were current at Ministry of Labour offices in England and Wales at 31st December, last. The Hospital Plan will not increase the nursing staff required.
Can the Minister say to what extent the educational requirement for entry into the nursing profession is affecting, or will affect, recruitment? Can he also say whether the number of pupil-enrolled nurses coming along is anywhere up to expectations?
As the hon. Member knows, the question of the educational qualification is not a matter for me. Recruitment figures in respect of students of all types show an upward trend.
Will the Minister confirm or deny the suggestion made very recently to me in a letter that it is possible for the domestic staff, the unskilled staff if I may put it in that way, in hospitals to earn far more than the professional nursing staff? If this is a fact, would it not be one of the major causes of the lack of recruitment of professional staff in nursing?
It is not possible to institute a comparison merely by looking at weekly pay between one grade and another. As I have said, the strength of the whole nursing force is at its highest ever at the moment and the figures for student intake are on the uptrend.
Nurses, Physiotherapists And Radiologists
35.
asked the Minister of Health if he is aware of the concern of hospital management committees at their failure to attract people of suitable educational attainment as nurses, physiotherapists and radiologists and what steps he will take towards an increase in wages for such staff to avoid a breakdown in the health service.
I have no evidence of any such failure generally. Pay is a matter for the appropriate Whitley Council in the first instance.
Does the Minister honestly believe that we can expect educated men and women of the calibre we require to fulfil the functions outlined in the Question at the rates of pay prescribed by the Council and confirmed by himself? If we can have an intervention in the Wages Council to stop wages from going up, why cannot we have one the other way round, when every hospital in the country is suffering as a result of rates of this kind?
Whatever the hon. Member expects, the fact is that young men and women are entering all these professions as students at an increasing rate—a rate which has been sharply increasing in the last two or three years.
Surely the Minister cannot be as complacent as he sounds about the intake, for example, of physiotherapists and radiologists and a number of other categories? Is he not aware that he has a responsibility to the Service, apart from the fact that the Whitley Council fixes the rates? What is the present position about the nurses' claim which came before the Whitley Council as long ago as August?
The last is a separate question. As for recruitment, obviously we should always like to recruit faster, whatever the rate were, but I have placed on record the fact that the increase in the number of students, for example in physiotherapy, in the last two or three years has been extremely sharp.
Is the Minister aware that the British Medical Association is also concerned about the position of the various groups of medical auxiliaries and supports them in their request for upgrading of status and conditions of service?
Yes, but I think that these matters of pay are best dealt with by this machinery.
Hospital Plan
48.
asked the Minister of Health if he will state the estimated aggregate cost of the capital development proposals submitted to him last year by regional boards and boards of governors for inclusion in the Hospital Plan.
For the period to 1970–71, about 60 per cent. above that of the proposals included in the Plan.
Does not this indicate that the proposals included in the Plan represent a very substantial cut in what hospital boards and boards of governors thought was desirable for a ten-year hospital programme? Is this not the reason why may of them are very disappointed with the outcome?
No, Sir. I do not believe that many of them were disappointed with the outcome. All the evidence and indications are the reverse. It was clearly right, in asking hospital authorities to put forward a programme, not to seek to limit them unduly in the financial assumptions they should make. It was much better that they should put forward a programme which might have to be extended over a somewhat longer period. This is what happened here. But it was the right way to go about this operation.
Employment
Young Persons
51.
asked the Minister of Labour what consideration he has given to the setting up of emergency training centres for young people out of work.
In general, the demand for young workers exceeds the supply. My Ministry does, however, regularly provide training courses for disabled unemployed young persons at commercial and technical colleges, at residential training centres, and at Government training centres.
Is the right hon. Gentleman aware that there are very few openings for apprenticeship training in the North-East? Does he not think that if schemes of this kind were introduced, they would be a means of alleviating the position, taking the young people off the streets and enabling them to receive a form of training which would make them ready when such apprenticeship openings arose?
I think the hon. Gentleman is aware that compared with 1960 we had something like 30 per cent. more school leavers last Christmas, and that there are, taking the nation as a whole, something like two vacancies for every young person at present unemployed. My own youth employment officers are doing all they can to see that these people get jobs.
School Leavers, Billingham And Stockton
52.
asked the Minister of Labour how many boys and girls, respectively, who left school at Christmas in the Billingham and Stockton areas have found employment; and how many are currently registered as unemployed.
Two hundred and thirty-two boys and 255 girls are known to have left school in these areas at Christmas, 1961; 35 boys and 29 girls were still unemployed on 9th February.
Is the right hon. Gentleman aware that the situation is becoming very serious indeed and that parents, along with the education authorities, are very concerned? Does he not think that some more positive action ought to be taken, even if it means consultation between his Department and the Board of Trade, which I have advocated in this House on many occasions? Does the right hon. Gentleman not think that the time has come when he ought to consult with the Board of Trade to see what can be done?
The hon. Gentleman knows that I am in very close touch with the President of the Board of Trade on the matter that he has in mind. I think he will also agree that training opportunities in this area in which he has a particular interest are, if anything, rather better than in the rest of the country because of the preponderance of heavy industry there. I do not want the hon. Gentleman to feel that I am not concerned with what he says, but I think he will find that we shall be able to find employment for these young people whose interests he has so much at heart.
South Africa (Supply Of Tear Gas)
53.
asked the Lord Privy Seal whether he will prohibit the export of tear gas from this country to South Africa.
No, Sir.
Is it not a fact that Britain is the major supplier of tear gas for South Africa which does not manufacture any of its own supplies, and that the exports of these supplies are controlled by the British Government? Is it not, therefore, intolerable that we should continue to supply this dictatorship with an instrument for quelling political demonstrations against apartheid when nominally this Government is said to deplore that horrible philosophy?
I have no information as to the other sources of supply which South Africa may have, or what the proportions are. As to the latter part of the hon. Lady's question, I am not aware that this is an illegitimate means of dealing with civil disturbance. In fact, many people would consider that it was better than many other means.
Since the right hon. Gentleman can have no doubt against whom this tear gas is going to be used in South Africa, will he not look at this matter again in relation not only to the export of tear gas but also the proposal which has received much publicity recently that I.C.I. should build a factory in South Africa for making tear gas?
I will consider the point.
Agriculture, Fisheries And Food
Meat
54.
asked the Minister of Agriculture, Fisheries and Food whether. in reconsidering Government policy with regard to meat production in this country and in order to reduce its dependence on subsidies, he will urgently review the possibility of establishing machinery which will result in a more rational pattern of modern slaughterhouses and factories which will ensure the application of the most modern methods for the treatment and inspection of meat, as well as its efficient distribution, and the better use of by-products.
This Question covers a wide field and I would ask my hon. Friend to await a statement which I shall be making in the debate on the Supplementary Estimate later today.
Disarmament Conference (Soviet Note)
(by Private Notice) asked the Lord Privy Seal whether he will make a statement about the reply received from the Soviet Government to the proposal made last Wednesday for Foreign Ministers to open the disarmament talks.
A joint reply by Mr. Khrushchev to their letter of 7th February has been given to the President and my right hon. Friend the Prime Minister in identical terms. Mr. Khrushchev suggests a different procedure from the one that we have envisaged and he has also communicated this to the other Governments represented at the Eighteen Nation Disarmament Conference.
Mr. Khrushchev's reply is being considered in consultation with our allies.The right hon. Gentleman is aware that we on this side of the House, as I am sure does the Minister, welcome the fact that Mr. Khrushchev recognises the need for high-level talks before, perhaps, final and very grave decisions are taken on the question of disarmament. While it is obviously necessary to consider this proposal as against the Foreign Minis- tern' meeting, and while they are connected, the two are not necessarily incompatible. Would the right hon. Gentleman give a clear assurance to the House—as we asked him last week—that there will be no resumption of tests, either by Britain or by the United States of America, until a real effort has been made at Geneva to agree on a multilateral tests ban agreement?
I agree with the right hon. Gentleman that it is to be welcomed that Mr. Khrushchev should have responded to the initiative of the President and the Prime Minister, and I accept, as the right hon. Gentleman says, that there should be a beginning at a high level. We are, of course, giving close consideration to the particular proposal that Mr. Khrushchev has made.
The last part of the right hon. Gentleman's supplementary question is a different matter and, in any case, there is a Question down about that to my right lion. Friend the Prime Minister tomorrow.Would not Mr. Khrushchev's reply imply that he is not as worried about the tests as is the Opposition, and that, therefore, it is important that Her Majesty's Government should leave their hands free on this matter? Furthermore, does not this show the likelihood of being able to get conversations started at the Eighteen Nation Disarmament Conference, which is a welcome reply to the Prime Minister's initiative last week?
Yes, Sir. I have already said that we welcome this reply to that initiative.
Will the right hon. Gentleman say exactly what is meant by the phrase "the West"? Is it now condensed to mean Britain and America? What is the rôle of Britain in relation to America when decisions are taken?
I do not see the point of the hon. Gentleman's supplementary question. I am not discussing the West.
Business Of The House (Supply)
Ordered,
That this day Business other than the Business of Supply may be taken before Ten o'clock.—[Mr. Iain Macleod.]
Orders Of The Day
Supply
[6TH ALLOTTED DAY]
Considered in Committee.
[Sir WILLIAM ANSTRUTHER-GRAY in the Chair]
Civil Estimates, Supplementary Estimate, 1961–62
Motion made, and Question proposed,
That a Supplementary sum, not exceeding £78,162,500, be granted to Her Majesty, to complete the sum necessary to defray the charge which will come in course of payment during the year ending on the 31st day of March, 1962, for expenditure in respect of the Services included in the following Civil Estimates, viz.:
CIVIL ESTIMATES, SUPPLEMENTARY ESTIMATE, 1961–62 | |
£ | |
Class VIII, Vote 2 (Agricultural and Food Grants and Subsidies) | 65,209,000 |
Class VIII, Vote 11 (Department of Agriculture and Fisheries for Scotland) | 12,953,500 |
Total | £78,162,500 |
Agriculture
3.34 p.m.
We are asking the Committee to vote an extra sum towards the support of our agriculture Vote for this year. For the United Kingdom as a whole this comes to a total of just over £78 million. Hon. Members will have seen the report of the Select Committee on Estimates which examined this Supplementary Estimate and I know that they will be grateful, as I am, to the Committee for the detailed Report and investigation which it made, and for the lucid analysis of the reasons which underlie these Votes.
I should like to deal with the main point made in the Report of the Committee, which met under the able chairmanship of my hon. Friend the Member for Aylesbury (Sir S. Summers), relating to the nature of our support system, whereby it is the duty of the Government, under an Act of Parliament, to make up the difference in terms of cash—whatever that may be—between the guaranteed prices for the various guaranteed commodities and the market prices which have been obtained by farmers, on average, during the year over the whole level of production of those commodities—whatever that may be. Inherent in this system there are, of course, many and considerable difficulties in connection with estimating. First, there is the question of timing. All the Votes have to be in and settled by the end of January. This imposes an obligation upon the Minister to do his best to decide what is to be the level of market prices in a free market for a period of up to fifteen months ahead. In other words, the Estimate of which this is a supplementary was settled in January, 1961, for a period extending from April, 1961, until April, 1962. We have to try to estimate the average market price for the different commodities over that period. Secondly, as the Estimate has to be in by the end of January, it has to be made before a determination is decided by the Government following the Annual Price Review in February, which ends usually in early March. So we do not know, at the time when we put in the Estimate, what difference there will be in the price determination for different commodities made in the Annual Price Review, and the effect which that will have on the levels of production, or even, perhaps, on the pattern of marketing. Last, but by no means least, do not let us forget the very considerable effects which—despite all the technical progress made in post-war years in relation to agriculture—the weather that we may enjoy, or "disenjoy", can have on the level of agricultural output. I think that it would be best if I discussed one by one the commodities which have contributed largely to this Supplementary Estimate. Meat is the biggest. Let me take beef first, where we have been proved wrong to the tune of £35·3 million. Of this sum, £13·3 million is accounted for by the extra 10s. a cwt. which was added in the Price Review to the guaranteed price for beef, together with the number of cattle which have in fact come forward. The larger part of this figure of £35 million, that is, £22 million, has been the direct result of lower market prices for beef. The Committee might well ask why the Government decided last year to put on the extra 10s. per cwt. on beef. Beef production is a long-term enterprise, and the numbers of calves retained on farms to be matured into beef had declined considerably. In view of that fact, and taking with it the level of milk production, which is an alternative to beef production on many farms, and if we note how the figures of milk production had been increasing, we were led to the conclusion that we should give some impetus to the production of beef, because of the declining numbers of calves being retained on the farms. That was the reason for the extra 10s. per cwt. What was the measure of the falseness of the Estimate? We had assumed an average market price for beef during the year of 142s. per cwt., which was decided in January last year. There is a nicety to be taken into account here, because this was decided in January, before even the previous financial year was over, because it ends in April. So in January, 1961, we were estimating a market price for 1960–61 of 144s., and our estimate of what the market price would be from April, 1961, to April, 1962, was 142s. per cwt. What happened? There was a very considerable drop in the market in the summer months, and the price went down to as low as 98s. 6d. per cwt. In the Supplementary Estimate which we are now debating, we revised our estimate of what the average market price for beef throughout the year would be from 142s. to 122s. 3d. per cwt. What caused this very considerable fall in price? There were a number of factors. First, and I think that there is something in this, though not very much, farmers had it firmly fixed in their minds before the last Price Review that there was to be an increase in the price of beef at the Review. I dare say that there was a tendency to hold beef off the market until the extra price to be paid came in at the end of March. In fact, the extra marketings in April and May were not all that much higher than they had been in the previous year. They were up by about 11 per cent. It was in June and July that we got the really heavy marketings of home cattle—up to 50 per cent. more than had been marketed in the same period of the previous year. What brought this about? It was, principally, the spring flush of grass coming a full month earlier than is customary in normal weather conditions, with the result that the animals were finished much earlier and came much more in a bunch, as against being spread over the year, than is normal. There was this very considerable flow of extra numbers of animals on to the market in June and July but we still expected then that the beef market would recover in the later summer. But the situation on the beef market was then aggravated—and I will come to this in more detail later—by large quantities of lamb coming on to the market, and, even later, by large imports of pig meat from the Continent. It was not until unusually late in the year that the market price for beef began to recover. It is considerably better now, up to 152s.-odd per cwt., compared with the 98s. 6d. to which it fell earlier in the summer, but the improvement came too late, alas, to be able to save this very considerable Supplementary Estimate. Now for the lamb figures. We had estimated that the market price of lamb in this year would be 2s. 5d. per lb. In fact, we now reckon it may work out at 2s. per lb. What brought this about? Here, there is no doubt that nature intervened, and, from the point of view of lambs, we have had a year to end all years. There was a record crop, a higher percentage of lambs than ever before. I see that one hon. Member opposite is smiling, but when we are working out the Estimates, and we have the responsibility of trying to get them right, although I know that we sometimes go wrong, what can we take? We have a certain size of ewe flock, and we estimate how many lambs we are likely to get from that ewe flock. But we got a higher percentage of lambs out of the ewe flock, living and marketed, than has ever happened before, following the good weather in February and March. The result has been that 700,000 more lambs grew to maturity on our farms than could have been estimated that there would be, on the basis of normal conditions. These came on to the market at a time when beef prices were low. Now for pigs. Here, the Supplementary Estimate is for £17·9 million, of which £1·9 million is directly due to the increased awards at the last Price Review. Again, the vast bulk of this Supplementary Estimate is due to the fall in market prices. The numbers of pigs reaching maturity on our farms have worked out at about what we expected them to be—slightly more, but not very much more. We included £1 million in the Supplementary Estimates for the increased numbers of pigs. We wanted to see a gradual and gentle increase in the size of the pig herd in the country, because it had dropped considerably in recent years, and the Price Review decision was designed with this in view. What happened about the bacon market was that in the earlier months of the year Denmark found alternative markets in Europe for quite a large proportion of her bacon. This was followed by a strike on the farms in Denmark, and very little bacon was exported while it was on. It lasted some weeks, and the bacon was kept in store. The amount of bacon coming on the market from abroad, particularly from Denmark, during the autumn months was much more than we could possibly have thought likely to be forthcoming when we had made the Estimate in January, and it came on to a meat market which was already weakened, both through the beef and lamb stories. If we consider the meat situation as a whole, beef, lamb and pigs, what pattern do we see? There has been an increase in the home production of all meat, and I am including chicken meat in this, of 12 per cent. over last year. There have been fewer imports than last year, and the net result is that the total amount of meat available on the market during the year was 4½ per cent. higher than it was in the previous year. The really worrying feature here is that such a comparatively small increase in the amount of meat coming on the market could bring about such a considerable fall in the market prices. I will return later to fatstock, but while I am dealing with the figures of the Estimates I will say a word about other commodities. The Supplementary Estimate for cereals is £7·8 million. There was a fall in the market price of both wheat and oats, though this was counteracted to some extent by a higher market price for barley than we had expected. At the last Review we cut the guaranteed price of barley and during the summer months we took measures in regard to the importation of barley and the level of price at which it would be imported. Therefore, the barley price was somewhat better on the market than we had expected. The wheat yields were somewhat up on what we had allowed for and the prices were somewhat lower, but the net difference over the whole range of cereals is an excess of £7·8 million. For milk, the figure is £3·4 million. This arises in the main from the increase we gave to the industry at the last Review coupled with the increase in distributive costs the greater proportion of which was caused by an increase in wages within the industry during the year. The 8d. per pint for milk to the consumer throughout the whole year was not sufficient to pay for these extra costs. Once we have settled the retail price of milk for a year ahead we do not like interfering with it, and, accordingly, the £3·4 million has been carried by the Exchequer. We shall, of course, take this increase into consideration when we determine the retail price of milk for the subsequent year. For potatoes, the bill is £3·86 million. This was entirely for the 1960 crop, not the 1961 crop. When we made our Estimates in January, 1961, we had had a very bad winter with a lot of rain, and a large proportion of the potato crop was still in the ground. It looked as though a great deal would be ruined. We made an estimate of the quantities which we thought likely to be lifted and capable of sale on the market. In fact, the weather turned much better and larger quantities of potatoes were lifted. There was a surplus of potatoes that year. We thought that the Potato Marketing Board would have to buy 400,000 tons of potatoes to keep the market at about the right level, but, in fact, it had to buy a net 550,000 tons. This was a good investment from the point of view of the Exchequer. It was money well spent, for the total subsidy bill would undoubtedly have been very considerable had all those potatoes gone on to the market. The drop in the market price would have been very much greater. But even with this considerable support buying programme, the fact remains that the market price was about 6s. lower in the event than we had estimated it would be. The Select Committee showed its anxiety and consciousness of the difficulties which any Minister of Agriculture has in trying to hold a balance of interest as between agriculture, the consumer and the Exchequer in this matter of support buying of potatoes. It is a nicely balanced point. Support buying, of course, takes place only in years when the acreage planted for potatoes, which would, in a normal year, produce roughly the amount of potatoes consumed by the public as a whole, gives an exceedingly high yield and one has to deal with very much larger quantities. Support buying takes a proportion of those quantities off the market to hold it at a reasonable level. One has to look at it over the years, and I think that, on the whole, this has been to our national advantage. The doubtful element in it, of course, is the consumer, and whether it has been to her advantage.And the taxpayer?
No. There is no doubt that it is an advantage to the taxpayer. Where the consumer is concerned, the Consumers' Committee which was set up under the Agricultural Marketing Act, and which examined this very problem of support buying of potatoes last year, gave it as its opinion that this was right and that the consumer did not suffer in the long run.
I return now to the fatstock story and the whole picture of the Supplementary Estimates. There is no doubt that what has happened this year is that several circumstances, all of which can lead to bad estimating, have combined together to bring about a very considerable Supplementary Estimate. This is not unusual. Many of these factors arise not infrequently though they do not, of course, always combine in the way that they have this year. I do not say that the target is never hit. Looking back over the last six years since 1955, there was in 1957 a Supplementary Estimate to cover an excess of 25 per cent. on the Vote as a whole. In 1955 and 1958, there was what proved to be quite considerable overestimating. In other years the Estimates, taking them together, turned out about right, but not without considerable over- and under-estimating in certain commodities. In one year, for instance, there was £36 million over-estimated in respect of one commodity, but this was counter-balanced by Estimates being proved wrong the other way, the total Vote in the end coming out about right. This system with all its inherent faults has been supported over the years by both sides of the Committee. It is, of course, designed to ensure a fair return to the farmer for his produce and, at the same time, to ensure that the consumer has the advantages of food cheaper than would be the case under a different system of control of imports, either fiscal or quantitative. To what extent has it been successful this year? I take, first, the farmers' point of view. The increased figure for support of fatstock—fatstock, of course, is by far the biggest element in it—is £78 million this year over last year. I am not talking about the difference between the original Estimate and the Supplementary Estimate, which just happens to be the same figure, but I am speaking now about the amount of subsidy paid out on all fatstock this year as compared with last year. Every penny of that £78 million has been paid to the farmers, but a large part of it has not led to any increase in the gross takings of the farming community. The reason is that, because the market price fell, the sums had to be larger to take account of the difference between the market price and the guaranteed price. But within that figure of £78 million, £31 million has been paid by virtue of increases in the guaranteed prices for beef and for pigs which were made at the last Review and for the extra numbers of cattle, sheep and pigs which have come off our farms this year. I now turn to the matter as it concerns the consumer. It has been a popular cry that the consumer has gained nothing from the fall in prices. Let us look at what has happened. I will take, if I may, the last published figures of the cost-of-living index for December. The index shows that the increase in the cost of living as a whole was 4½ per cent. over December, 1960, and that the increase in the non-food items during that period was 5½ per cent. The figures show that the increase in the food items was 2 per cent, and that the item of food which contributed most to this small rise was meat, for the meat figure was 6 per cent. less in December, 1961, than it was in December, 1960. Perhaps we can consider this from another angle. When we put in this Supplementary Estimate we had knowledge of what the movement in the retail prices of meat would be like on the figures produced by the Ministry of Labour up to December. We had, then, to estimate the price up to the following April. In doing that, we had to arrive at a figure covering April, 1961, to April, 1962. I do not think that the estimate we made will be all that far out. I believe that the cost-of-living index figure for meat over the whole period—from April, 1961, to April, 1962—will be 4 per cent. down compared with the previous year. What does that represent? The value of meat at the retail point throughout the country—and this is for all meat produced including that which is imported—is about £1,300 million a year. A 4 per cent. reduction on that total is about £50 million. A reduction of £50 million spread over every family represents about £1 a head a year, or about 6d. per week per head and this might not be thought to reflect very much on individual families. It is, therefore, understandable why individuals may not have felt that there has been this fall in the price of meat. Nevertheless, looking at it from the other side of the coin, £50 million as a reduction in the context of our discussion today—a Supplementary Estimate for fatstock of £67 million—is quite a considerable figure.The Minister is now giving average figures concerning retail prices and their effect on consumers. Why, when he put this Supplementary Estimate to the House, did he say that any estimate of what the consumer received could only be speculative? How does the Minister arrive at this figure, since his Department has no accurate figures on this subject? Is not the figure he has given representative of a very small sample and, therefore, only speculative?
It is speculative for two reasons, one of which I have given, namely, that we have had to cast our minds forward to market prices at the end of next April because this Supplementary Estimate is from April, 1961, to April, 1962. That is one inevitable element of speculation. The second is that this is not based on individual purchases in individual shops, but by taking an average—which has been accepted by both sides of the Committee—of the movement of prices as reflected in the cost-of-living index. As I have said, this figure of £50 million in the context of what we are now discussing is a very considerable figure.
But what of the distributive trades? What sort of a year has it been for them? Let it be said, first, that they have had a good year, for things have gone forward. The quantity has been right, the market price has been low and the demand has been strong. Thus, this has been a good year for them, certainly compared with the previous year, when the situation from their point of view was not so satisfactory. It is very difficult to estimate what the extra figure is for all the distributive trades. There are 40,000 butchers' shops apart from 200,000 other units which handle meat at some point during the distributive chain—importers, slaughterers, grocers, supermarkets, and the rest. When I presented this Supply Estimate, in December, I made what I think, in retrospect, was a bad calculation, because I took a bad base point. I took as the base the figure of £78 million which was the increased amount of subsidy we expected to be paid out. I took the figures of £31 million for the farmer and £35 million as the benefit that the consumer had received from home-produced meat on the prices that had had to be paid. I added those together and subtracted the total from £78 million. I arrived at the figure which I said I would call about £10 million. As I say, that was all done on a false base and the more I have looked at this the more impossible I think it is to reach a conclusion as to how much, throughout all this complicated chain of the many units at different levels, one can estimate the many links in the chain and the level of increases in profits. Certain figures have been made available to us. One well-known retail chain of shops has published its figures. These show that the profit made on meat by that chain in the period which we are discussing was under 1½d. per lb. This firm is in both the retail and wholesale links of the chain. The only comment I would make on this figure is that even were it very considerably reduced it still would not have made any great impact on what the consumer would have paid for meat. Undoubtedly, some firms—the multiples particularly—have reflected the movement of wholesale prices in their retail prices very much more closely than have other firms. Indeed, the knowledge that we have of the movement in prices in some businesses over the course of the year, together with what we take to be the average movement of meat prices from the retail prices index shows that there must have been some firms which moved them considerably less than did other firms. It is also revealed—and we know this without any doubt—that the movement in prices at the retail point of different cuts of meat has varied enormously. Some figures I have in my mind from a well-known organisation show price cuts varying from a 4 per cent. reduction on steak to, I think. a 20 per cent. or more reduction on the poorer cuts of Iamb. What I think has been shown beyond peradventure, and what has been highlighted this year from the point of view of the consumer, is that there have been opportunities to get very considerable reductions in the cost of meat compared with the previous year, but to obtain full advantage, purchasers have to be very "choosey" both as to the cuts of meat they wish to buy and the shops they wish to patronise. Of course, there are some who always go to the same butcher's shop and who are always inclined to ask for the same cut of meat, but there is no doubt that discrimination both as to the type of meat that was bought and the shop in which it was purchased have given the consumer this year the opportunity to get very much above that average of the reduction in cost of meat at retail point.The calculation made by the right hon. Gentleman is, I believe, on a false foundation. The Supplementary Estimate seeks to give a bonus or an award to quality produced cattle, but that has a bearing on the other side of the matter, cast cows. That is one of the biggest selling features of beef in any market at present. The price of cast cows fell from approximately £50 or £40 per cow to £30 or £20. The right hon. Gentleman is basing his calculation on the butchers' meat sold in a shop.
This debate is about all the animals which go through the certification centres and are certified as achieving a certain standard so as to be able to qualify for the subsidy. I quite agree that the more low quality meat there is on the market the more it tends to drag down the whole tone of the market. That undoubtedly is so, but deficiency payments are paid only for animals which reach a certain quality when inspected in the certification centres.
The retail end of the business is only a comparatively small part of the total meat industry. What is most disturbing, and what has brought about this Supplementary Estimate for fatstock more than for anything else, is the change both in the pattern of marketing and the source of marketing and the fact that, following this considerable increase in home supplies, but not a very large increase in total supplies, the market has fallen to such an extent. Some of the factors are, I hope, transient, but others, I hope even more strongly, are those which will be with us for some time to come, notably a high level of production of meat from our own farms. If this is to be so, it is most disturbing that the market seemed so incapable this year of adapting itself to these changed conditions. [HON. MEMBERS: "Hear, hear."] I am talking about the whole pattern of meat marketing from the market itself down to the butcher's slab. There have been a number of inquiries in the 1900s into meat marketing. There was the Linlithgow inquiry after the First World War, and the Reorganisation Commission for Fatstock in 1934, the recommendations of which had not been put into operation when the last war intervened. Then there was the Lucas Committee, which examined this matter with other matters during the post-war period. The proposals of that Committee for fatstock marketing, also, were not implemented. The situation we are facing today, however, is entirely different from what it was when any of those Committees examined the problem. I cannot break these figures down for beef, but, taking cattle as a whole, there are 55 per cent. more in this country than there were just before the war. There is 40 per cent. more lamb killed off our farms than just before the war and 85 per cent. more pigs. The situation is fundamentally different. I am convinced that what we need is a thorough re-appraisal of our whole system of meat marketing.A committee?
Yes, a committee. I can assure the hon. Member that I am not the slightest bit ashamed of setting up a committee. With the agreement of my right hon. Friend the Secretary of State for Scotland and my right hon. Friend the Home Secretary, we propose to set up a committee of inquiry whose terms of reference will be:
From the producer point of view there is a strong feeling among many farmers that a producers' marketing board for meat would have alleviated our problems to some extent this year."to investigate the organisation of the marketing and distribution of fat stock and carcase meat in the United Kingdom, and the existing facilities and present methods employed; to consider whether changes are desirable: and to make recommendations."
My right hon. Friend has told us that a committee is to be set up to look into the whole question of marketing meat. Could we have a promise from the Government that nothing will be done to disturb the present support of agriculture before that committee has reported?
I think that my hon. Friend misunderstood the purpose of the committee. Its purpose is not to look into the system of agricultural support, but into the whole structure and system of meat marketing within the industry. I am coming later in my speech to the question of the change in the system.
A substantial body of producers would like to see a producer marketing board for meat. The leaders of the National Farmers' Union have said that they certainly do not dismiss this thought from their mind—indeed, they intend to examine it. Nevertheless, there are weighty arguments on both sides about the setting up of a producer marketing board and I have had discussions on this with the President of the N.F.U. We are in agreement that before taking this point further, it is necessary for us to look into both the pros and the cons in some detail. The feature which, obviously, needs looking into most of all is what degree of control a meat marketing board must have to have an effective impression upon the market and the corollary of that, namely, whether the level of control which is necessary to have an effective impact upon the market would be such as to be acceptable within the national interest as a whole. This will fall within the terms of reference of the committee.Will slaughterhouses and slaughterhouse policy, and, perhaps, recommendations for factory abattoirs be included in the terms of reference?
I would not go so far as to talk about recommendations, but the whole system of meat marketing, which includes both markets and slaughterhouses, will be included.
The other point concerning the Estimates is the question of the importation of meat. We are, of course, limited within our international obligations in ways which hon. Members know well. It does not do any good either to the exporting Government or to this country if the levels of importation of any commodity are such as to lower the price to an unacceptable level. I have drawn the attention of every major meat exporting country to the situation on our market and have asked them in the ensuing year, because the level of supplies of meat in the coming year will, I expect, be at least as high in total as it was during the past year—although, I hope, the pattern will be spread more evenly—to take the fullest possible account of the situation in our market when they plan their exports to us.Will the Minister be more explicit? What does he mean by that? He says that he has consulted exporters overseas. Does he mean that he wants them to limit their exports to this country?
No. Exporting countries are well aware of this. Many of them depend on these exports for their livelihood. If the volume of any commodity on our markets is such as to break the market, as it did in beef last summer, nothing will be gained by the exporting country any more than by us. That is what I said.
Will the terms of reference of the proposed committee include the question of imports? The Minister may recall that the Lucas Committee complained that it was not able to produce a more valuable Report because its terms of reference did not include the question of imports. Can the Minister assure us that the same mistake will not occur this time?
I am not at all sure that it is a mistake. We are not looking to the new committee to advise the Government what its trading arrangements should be. It will, however, take into account what trading arrangements exist when it makes its report.
rose——
I really must get on.
The Estimates Committee said, in its Report, thatThe present system of support has served the country well and has had the support of both sides of the House of Commons over a long period. Of course, the situation in which we find ourselves today, from the viewpoint of supplies of food throughout the world, is very different from what it was when the system of support was introduced. If we are to maintain, as we on this side are determined to maintain, the possibilities for the agriculture industry to remain buoyant and virile and to make its contribution to the national life, we must be prepared to adapt the systems of support that we use to the circumstances as they present themselves. We have our pledge to the agricultural industry that the 1957 Act will remain operative during the lifetime of this Parliament, and this pledge, of course, remains. We have also to think of the fact that negotiations have begun with the Common Market to see whether it is possible to make arrangements which are suitable from the viewpoint of preserving the vital interests both of the Commonwealth and of our own nation, to enable the country to join the Common Market. Of course, no changes can, or should, be brought about until the outcome of those negotiations is decided. Changes will inevitably be necessary to a considerable extent if we join the Common Market; of that there is no doubt. Quite considerable changes in our system of support to suit the existing circumstances may well be necessary, in any case. Meanwhile, however, we continue with our present system of support, with its advantages and also with the risks of bad estimating or bad out-turn as against the Estimates which are inherent in it. At the same time, the Government will continue to do their best within the scope of what is open to them to ensure that the out-turn is as near as we can manage to bring it to the Estimates."In your Committee's opinion, this Supplementary Estimate is fundamentally due to the policy embodied in the Agriculture Acts rather than to avoidable miscalculations in the original Estimates."
4.28 p.m.
We have had an amazing speech from the Minister, At first, I thought that he would explain in detail the effects of Government policy on the price support position. Throughout my speech, I should like to challenge some of the Minister's main assumptions. I am astonished at his cursory announcement of the new committee on marketing. I will deal with that, because we on this side feel that over a long period of years the Government have failed to respond to our prodding on marketing policy.
I believe this to be one of the most critical debates for agriculture that we have had in the House of Commons. Hon. Members, on both sides, are disturbed about the results of the Government's policy. The Government cannot escape responsibility for their miscalculations. I see the hon. Member for Kidderminster (Mr. Nabarro) opposite me. I can imagine his reactions if a Labour Minister had been making the same speech——Hear, hear.
or if the Chairman of the National Coal Board had made so many miscalculations.
The Government face a critical debate. There is, of course, as the Minister quite rightly said, the shadow of the February Price Review negotiations, and he has mentioned now the Common Market negotiations, and there is also, and above all, the general financial and economic policy of the Government—the Chancellor's policy. We cannot separate increased payments and increased farm incomes from the Government's financial policy as announced recently in the White Paper. So, today, we must inevitably consider the system in relation to that general background. Today, the Minister has been slightly more forthcoming than he was when the increased Estimates were announced on 14th December last year. I was astonished that the Minister did not, when he announced the increase, make a statement to the House. That was an example of how the right hon. Gentleman tried to evade his responsibilities for giving the House full information. The reputation of the Secretary of State for Scotland on this has been rather that of a political clam. We are, after all, discussing not only Estimates which affect England and Wales, but also nearly £13 million for Scotland, and, so far, we have had no major statement on these Estimates from the Secretary of State. On 14th December we cross-examined the Minister, although I am sure that he arranged for an ordinary Question to be addressed to him so that he could evade making a major statement; but we have had no statement as yet from the Secretary of State. I know that that will be remedied, and I hope that some of my Scottish colleagues will chase the Secretary of State, who has so far failed to make a major statement. Fortunately, we had the benefit of the Report of the Estimates Committee, and I, too, would like to congratulate the Chairman of the Commitee, which is comprised of hon. Members from both sides of the House. The Committee extracted from the Minister information which he could have given to the House in December. I should also like to congratulate the Minister's Permanent Secretary on the evidence which he gave and on the memorandum which he submitted. Indeed, the speech of the Minister today is only a rehash of his own Permanent Secretary's memorandum to the Estimates Committee. The Minister described the total cost of agricultural support as now running at £344·7 million and how he is now seeking to justify the increase of £78 million. The figures now are known. We need not go into them in much detail—£35·3 million for cattle, £13·6 million for sheep, and £17·9 million for pigs. Then there are the Estimates which have been mentioned for cereals and for potatoes. The Minister talked about a combination of several factors, howand from the Minister today we have had really what is virtually a hard luck story—a very hard luck story—about how everything has gone wrong, how the weather has not responded, how the Price Review determinations have had the effect of an increase in beef production, how, in pig production, the determinations of the Price Review last year have led to a larger flow on to the market, then the flow of imports from outside, from Denmark—which the Minister today did not mention, but which was mentioned in the memorandum submitted by the Ministry to the Estimates Committee—the extra Irish store cattle, and extra wheat from France, and so on: all this, he said, has led to a depression of the market. Our main case today is that though we accept that there may be certain factors in agriculture which cannot be estimated——"wholesale prices for each of these commodities have fallen greatly below expectation over the course of the year."—[OFFICIAL REPORT, 14th December, 1961; Vol. 651, c. 604.]
May be? Are bound to be.
There are bound to be, but when the Labour Government were in power, in 1947, when our flocks of sheep were affected by the bad weather, we were attacked unmercifully by hon. Members opposite. Here we have a combination of factors, and a combination of factors effected by deliberate Government policy.
Indeed, over the last two years the Government have encouraged increased beef production and the remarkable fact is that farmers have produced more. Because of the circumstances, because of what is termed a free market, because the Government have not sought to create an organised market linked with a deficiency payment system, inevitably such a crisis has occurred. So what we are really debating today is the fact that the system has broken down. However much one looks at the figures which were mentioned by the Minister, however one examines the miscalculations which are now admitted—and, my goodness, does not the Minister admit gross miscalculations?—he cannot escape his Department's responsibility in this. Here, we are seeing a breakdown of the system, and the hon. Member for Kidderminster and others who are very vigilant on Estimates know that that is really the issue behind the debate today on these Estimates.Let the hon. Member speak for himself, not me.
The hon. Member can have an opportunity to make his contribution. I thought, judging by where he was sitting, that he was a P.P.S. today.
I want to know what the Minister will do. We heard him talk about the interim committee on marketing. He made a significant statement on 14th December in reply to a question from one of his hon. Friends, when he said thatI want to know from the Secretary of State whether the Minister really does intend to take action in relation to the Price Review. I want to know what is the Government's policy towards marketing. I do not intend to be fobbed off by the announcement of this new committee. As hon. Members on the other side know, this is only window-dressing; it is only a last-minute sop by the Minister. He does not even know who the chairman of this committee is to be, or who are to be its members. I want to know, as I shall demonstrate later, from the Minister what really is his policy on marketing. As I have said, the Minister must accept responsibility for gross miscalculation. We have had the benefit of the work of the Estimates Committee, and I have paid a tribute to that, but we want to know now where the money has gone. I think that he said that 5 per cent. went to the consumer during the period. Now he has changed his mind. I quote what he said:"we will do everything possible, including any action which it may be right to take at the Price Review, and we will also improve marketing arrangements where this can be done."—[OFFICIAL REPORT, 14th December, 1961: Vol. 651, c. 605.]
My hon. Friend the Member for Sheffield, Hillsborough (Mr. Darling) asked where the other £45 million had gone. The Minister, in reply, said that there had been"In round figures, about £31 million…will have gone to the farmers for the increased number of cattle coming forward and because of the higher prices…"
The right hon. Gentleman has argued all along that the consumer has benefited by £35 million, and in reply to a question by my hon. Friend said then that the other £10 million went to the distributive trades. I assert again, as I did in an intervention in the Minister's speech today, that the Minister's figures are only speculative. Indeed, he said this when he announced these figures. I should like to know how the Minister has arrived at these figures. I hope that we shall have an answer from the Secretary of State. His own Department does not collect retail prices. The Ministry of Labour, of course, does, but even that Ministry takes only a small sample. How can we really have direct comparisons for retail meat? I have here the figures which have been given to me by certain butchers' organisations—no doubt, organisations similar to those which the Minister has mentioned. I have figures given to me by the Meat Trades Federation. I shall not argue who is right, or who has benefited, whether the farmers, the butchers or the distributive trade. Individuals have taken advantage of the system which has been created and that is where, I hope, my hon. Friends will focus their attack. As yet, we are unable to get exact figures. Even when we considered retail prices, the Minister said, "The consumer could benefit if she would be a bit more choosey. How can ordinary families, old-age pensioners and people on small incomes be choosey in relation to the buying of steak and other high quality cuts? They cannot possibly buy these."a 5½ per cent. reduction in retail prices…"—[OFFICIAL REPORT, 14th December, 1961; Vol. 651, c. 605–6.]