Price Review
1.
asked the Minister of Agriculture, Fisheries and Food if he will advance the date of the Annual Price Review.
7.
asked the Minister of Agriculture, Fisheries and Food if he will now arrange for an interim autumn Farm Price Review, having regard to cost increases on farms since July, 1970.
No, Sir. On 6th October the Government announced in a White Paper increases in the guarantees for 1970–71 for most of the main agricultural commodities.
I congratulate my right hon. Friend on introducing an interim price review to cope with an unprecedented situation. Would he have another look at this in general terms? Would he not agree that mid or early March is rather late for most farmers to change their policy for the year in question? Would he not agree that, if the price review were earlier, he might be able to get results sooner?
I am going to consult the National Farmers' Union and other interested bodies as to whether or not we wish either to go on with the same procedure for an annual price review or have it at the same time of the year, but these are long-term considerations and I shall need a good while to undertake negotiations.
Whereas farmers everywhere, notably in Worcestershire, are singularly grateful to my right hon. Friend for the award of £54 million, would he say up to what point this award was measured in terms of increasing costs—was it to the end of July, or to the end of June or to the end of August?—because costs are still rising very fast?
It was not related to costs either incurred or likely to be incurred, but it was considered by the Government to be a boost to agriculture, taking into consideration the very high market prices, particularly in cereals, and therefore in feeding stuffs. We shall have to look at the year as a whole at the end of the year.
Is the right hon. Gentleman aware that, whereas certain sectors of the industry certainly benefited from the increases which he announced, other sectors certainly did not—for example, the poultry industry? Increasing costs will result in an increased price of poultry meat. What action is he taking to assist these sectors to keep food prices down?
When the right hon. Gentleman had my position, he deliberately put back on to the open market the whole question of eggs. I have continued with the same policy as he adopted.
Agricultural Production
2.
asked the Minister of Agriculture, Fisheries and Food what proposals he now has for increasing agricultural production; and if he will make a statement.
34.
asked the Minister of Agriculture, Fisheries and Food when he proposes to announce his plans for increasing farm production at home in order to save imports; and if he will make a statement.
The Government are committed to selective agricultural expan- sion, and the recent adjustment to guaranteed prices was an indication of our resolve.
When does my right hon. Friend intend to introduce the new system of agricultural support?
There is a Question on the Order Paper shortly dealing with that.
Will the right hon. Gentleman continue to allow Danish bacon to be imported at the present high level?
In the last year the amount of Danish bacon imported has fallen and British production has risen. I should like to see British consumers eating more British bacon.
But is the Minister not aware that, at present, if farmers depended on the market alone for their beef and lamb prices and on import control, they would be in dire trouble, and that it is only the subsidy which is maintaining the prices for the farmers?
This depends entirely on the level at which the minimum import price alone is assessed.
Agriculture (Support)
3.
asked the Minister of Agriculture, Fisheries and Food if he will now make a statement on the changes he intends to make in the present system of Government support for agriculture.
19 and 20.
asked the Minister of Agriculture, Fisheries and Food (1) if he will introduce an import levy scheme for cereals;
(2) if he will introduce an import levy scheme for dairy products.
24.
asked the Minister of Agriculture, Fisheries and Food what plans he intends to introduce to enable beef producers to obtain a profitable return from the market.
48.
asked the Minister of Agriculture, Fisheries and Food if he will make a further statement on the future of agricultural subsidies.
It is Government policy to change the present system of support. We are telling our principal overseas suppliers of our intention to introduce at an early date higher minimum import prices for cereals and new levy schemes for beef, mutton and lamb and milk products other than butter and cheese. We propose to carry out the necessary negotiations with our suppliers as quickly as possible. We shall also be consulting the domestic interests concerned.
Assuming that the Government's proposed new lack of support policy for agriculture will contain both target prices and fall-back guarantee prices, will the Minister give an assurance that the level of the fall-back guarantee prices will not be fixed at a level less than the present guaranteed prices? I am sure that he would agree that that is a very reasonable assurance to seek, since target prices will be fixed higher than the present guaranteed price levels.
There is no question of any lack of support in the Government's proposals for agriculture. I think that farmers will have a good deal more confidence in our policy than they had in the policy of hon. Gentlemen opposite.
I welcome what the Minister said, but is it not absolutely essential, particularly with milk, that he gets on with this task as quickly as possible, since the dairy farmers could find a reduction in their income, particularly if there is any cut in welfare and school milk?
That, of course, is another question. However, as for negotiating a levy system for minor milk products, we will get on with that straight away.
Is my right hon. Friend aware that, despite the recent very welcome increase in the price of beef, there is still a tendency among fatteners to sell winter fodder off at the very high present level of prices and not fatten cattle at all? What will he do about that?
It is hard to please everyone. Since the announcement of the increase in prices, the market for fat cattle and store cattle has improved considerably.
Will the right hon. Gentleman answer the very important question of my hon. Friend the Mem- ber for Edinburgh, East (Mr. Strang)? He failed to give an answer to a question in which every farmer in the country is interested. Second, now that he is embarking on these very important negotiations, would he say whether, if they fail, the Government are proposing to impose the levies unilaterally?
There is no question of these negotiations failing. The Government are determined to make this change. I want to make it plain that that is Government policy. On the fall-back guarantees, we have agreed that the present system should last through a transitional period of not less than three years. During that period, we shall be consulting the whole industry to see what new system can be brought in.
Brucellosis
4.
asked the Minister of Agriculture, Fisheries and Food what proportion of herds is now free of brucellosis; and whether he will make a statement on the progress of the eradication scheme.
5·1 per cent. of British herds are already accredited and a further 5·6 per cent. are qualifying under the present voluntary schemes. I do not want to be unduly optimistic but the initial response to the new incentives scheme has been very encouraging, and 80 per cent. of accredited herd owners have opted for it. Plans are under way for next year's compulsory eradication programme, and the Milk Marketing Boards have started screening tests to assist in determining the initial choice of area.
Is my hon. Friend aware that many people consider that this disease is more prevalent now that it was five years ago? Will he take the bull by the horns and bring in immediately an area eradication scheme for brucellosis?
If we are to tackle this scheme properly, it is essential not only to take several bulls by the horns but also to plan this so that we have a sufficient reservoir of stock. To go in for mass compensation rather than a planned area scheme would not fulfil what we want to do.
Food Prices
5.
asked the Minister of Agriculture, Fisheries and Food if he will now take steps to prevent further rises in the prices of foodstuffs produced in Great Britain.
12.
asked the Minister of Agriculture, Fisheries and Food what notifications have been made to him of increases in food prices, and what action he has taken on them.
13.
asked the Minister of Agriculture, Fisheries and Food what further steps he intends to take to protect consumers from further food price increases.
23.
asked the Minister of Agriculture, Fisheries and Food what action he has taken since 18th June to hold down food prices and in respect of which commodities; and if he will make a statement.
49.
asked the Minister of Agriculture, Fisheries and Food what action he proposes to take to halt rising food prices.
53.
asked the Minister of Agriculture, Fisheries and Food what steps he has taken to control the increase in the price of food for housewives.
56.
asked the Minister of Agriculture, Fisheries and Food on how many occasions since 24th July he intervened to prevent increases in the retail price of food; and whether he will make a statement.
None, Sir.
Is the right hon. Gentleman aware of the hardship which is caused by the recent increase in food prices, especially for old people and for housewives, in great cities such as Leicester? Will he indicate when the Government propose to redeem their election pledge to hold down food prices?
I am aware that food prices have risen. I am also aware of the cause for it, and I hope that hon. Gentlemen opposite will take the blame.
Is the right hon. Gentleman aware that over 3,000 food prices have risen since 18th June, and that by abandoning the early warning system under the Prices and Incomes Act he is actually encouraging increases in prices?
There is another Question on the Order Paper about food prices which have risen in the past four months and I shall be answering that a little later on. As far as the early warning system is concerned, all I can say is that by shopping around—[HON. MEMBERS: "Oh."]—yes, and by using her good commonsense, the housewife can do much to bring down prices. I may also say that greater competition between traders and manufacturers can do more than all the outpourings of the Prices and Incomes Board.
The Minister must be aware that Members of Parliament are being inundated with complaints from constituents about rising food prices, but is he aware that there is evidence before his Ministry that in the new towns in Scotland, the new town of Livingston in particular, in my constituency, the increases of food prices are even worse than they are elsewhere?
I cannot answer for the hon. Gentleman's constituency—
I have written about it.
—but when we come to a later Question on the Order Paper he will find that some of the facts he has been uttering are not true.
In view of the fact that the Minister and the Government have completely abdicated all responsibility for these rising prices, will the Minister now appeal to his right hon. Friend the Prime Minister to take away from his Ministry the whole responsibility for food, because he cannot serve two masters at the same time?
Perhaps the hon. Gentleman had better try to understand one fact, and that is that average earnings are up this year by 12 per cent. and production is up by under 1 per cent., and that is a recipe for price increases and disaster if ever I knew one.
Would the Minister not agree that his reply to this Question was very unfavourable compared to his answer on Question 3, when he said that farmers have much more faith in this Government than the last? This is understandable. Would he not now agree that, having gained the housewives' votes, his policy has sold them down the river?
Any increase in prices which has so far taken place has nothing to do with the introduction of minimum import prices or a levy scheme.
Is the Minister aware that his answers are really not good enough? Is he really telling the House that after the whole of 13 weeks of recess he has not taken a single step to implement the pledges solemnly made by his party's leader to the electorate in the last General Election, and is he saying that he has no greater concern than this for the people on limited incomes and with low incomes when Conservative leaders have constantly been protesting concern for them up and down the country?
We shall welcome every assistance from all parts of the House to make the British nation understand that if they go on paying themselves a lot more for the work they are doing then prices are bound to go up.
Does the Minister realise that he is giving a series of totally unsatisfactory replies? Is he saying that he has completely forgotten the promise made by himself and his right hon. Friends during the election that they would hold down the prices of food? Does he realise that the people have completely lost faith in the Government, that he has let the housewives down? He and his party won the election on a false prospectus. Will he now return to a system of scrutinising increases in food prices and, where necessary, referring those increases to the Prices and Incomes Board, which was the policy that was successful over a long period of time for investigation?
If the right hon. Gentleman really believes that his party's policy was successful I am surprised that they lost the election. In fact, prices of food and the cost of living index have been going up more rapidly in the last six years than at any time since 1951. Quite apart from that, in the last year alone the increase has been 7·1 per cent. and the right hon. Gentleman knows who was responsible for that.
6.
asked the Minister of Agriculture, Fisheries and Food whether he will make a statement on changes in food prices over the past three months.
17.
asked the Minister of Agriculture, Fisheries and Food by how much food prices have risen since 1st July, 1970.
18.
asked the Minister of Agriculture, Fisheries and Food to what extent food prices have increased since 18th June last.
46.
asked the Minister of Agriculture, Fisheries and Food if he will make a statement on changes in food prices since 19th June, 1970.
The Food Index fell from 141·6 on 16th June to 140·6 on 22nd September, the latest figure available.
Would my right hon. Friend make it abundantly clear that there cannot be any end to the increase in retail prices generally till the Government strike at the root of inflation, which is excessive public expenditure? Would he not agree that a switch to import levies will make a dynamic contribution to a reduction in public expenditure?
Yes, Sir.
While having already achieved the blackest results in the shortest possible time by any Minister of Agriculture there has ever been, does the Minister really think that he and his Government can persuade the housewives by his "phoney" answers today that food prices have gone down?
I am sorry that the hon. Gentleman has failed to do his homework. He should not try to get out of it by statements like that.
Does not the right hon. Gentleman really think his party has deceived the public, not only by his feeble idea of getting the housewives to shop around, but by his policy which is aimed at putting food prices up?
I am well aware that food prices have fallen in the last four months. This is usual at this time of year for seasonal reasons. But, of course, the country has in the next few months got to face up to the very severe cost inflation of the last few months and last two years, and we have a very serious problem ahead of us. I do not underestimate this problem at all. On the question of my policy for agriculture, all I can say is that we shall be reducing Government expenditure, we shall be affording additional help to those who need it, and the rest can look forward to tax reductions in due course.
The Minister may be convinced but he has certainly not convinced my wife, or, I am sure, thousands of other people, that prices have come down. Will he say how he proposes to deal with what to many of us is one of the biggest rackets, and that is the hidden increases in food prices through short weight in cereals and biscuits, and so on? If he is not prepared to take any action about direct food prices will he do something about those hidden food prices?
No. There is absolutely no difference here from allowing the market to work. Cereal prices throughout the world are running at a much increased level compared with a year or two ago, and we have to put up with it.
Why does the right hon. Gentleman try to keep up the pretence that he is concerned about keeping food prices down when in the House he has asserted that the people of this country have been molleycoddled too long with cheap food and that prices should rise? It is precisely his own policy which is happening.
I do not wish to continue with a policy of subsidising food.
Oh!
Fishmeal
8.
asked the Minister of Agriculture, Fisheries and Food if he will now make a statement concerning the increase in home-produced fishmeal.
Home production of fishmeal has remained fairly stable over the last five years, at about 85,000 tons per annum.
Will my hon. Friend reconsider the arrangement whereby only 10 per cent. of small fish are now allowed to be landed under the present arrangements, and would he agree that a great number of small fish have wastefully to be returned to the sea, and that if more were allowed to be landed it would help with the supplies of fishmeal?
I think that this is largely a question of balance, because if industrial fishing were extended along the lines my hon. Friend suggests I think we should require to locate extra sources of suitable species to provide raw materials all the year round. It seems to me a mistake to do this if it would cause us to import more fish.
Egg Authority
9.
asked the Minister of Agriculture, Fisheries and Food when he will announce the names of the chairman and other members of the Egg Authority.
It was announced on 20th October that Mr. A. R. Collingwood, T.D., and Mr. J. F. Phillips, O.B.E., had been invited to be Chairman and Deputy Chairman respectively, and my right hon. Friends and I are grateful to them for agreeing to serve. The names of the other members will be announced as soon as possible.
Horticultural Produce (Marketing)
10.
asked the Minister of Agriculture, Fisheries and Food what further proposals he has for improving the marketing of horticultural produce.
Marketing is primarily a matter for those commercially involved. We should only be ready to consider new proposals for Government action if it could be shown that there was no alternative.
Does the Parliamentary Secretary agree that improved marketing provides scope for improving the return to growers and that this will be particularly important if we go into the Common Market? Are not the Government studying further methods of encouragement?
Considerable encouragement has been given for some time, with a concentration on improving marketing. We would do well to reflect that less than 10 per cent. of horticultural goods are marketed in a co-operative way and that, therefore, continuity of supplies is very difficult. I would be ready to think along these lines.
Lettuce And Tomatoes (Import Tariffs)
11.
asked the Minister of Agriculture, Fisheries and Food if he is satisfied with the present level of tariffs on imports of lettuce and tomatoes; and if he will make a statement.
The existing tariffs provide a measure of protection for home growers. It remains open to them to apply to my right hon. Friend the Secretary of State for Trade and Industry for changes in the rates of duty. But the policy of the present Government, like that of their predecessors since the statement made by Mr. Christopher Soames on 27th November, 1963, is to reduce the horticultural industry's dependence on the tariff.—[Vol. 685, c. 276–81.]
Does the Parliamentary Secretary agree that most of the specific tariffs on these goods were set as long ago as 1953 and that their effectiveness has been severely eroded by inflation? If an application were made to the Minister, would he invite his right hon. Friend to regard it sympathetically?
This is obviously a matter which could very properly be put to my right hon. Friend, and I would strongly advise my hon. Friend to put it.
Are the Government aware of the anxiety felt by the glasshouse industry in the Clyde Valley about the possible dumping by Rumania and Bulgaria of cucumbers and tomatoes, and what will be done about it?
If there is any question of dumping, and if the industry will produce a reasoned and factual case, I would strongly urge it to go to my right hon. Friend with it.
White Fish Authority
16.
asked the Minister of Agriculture, Fisheries and Food if he will now make a further statement on the future of the White Fish Authority.
40.
asked the Minister of Agriculture, Fisheries and Food what meeting he has now had with the Chairman of the White Fish Authority; and what decision he has made about the future organisation and finances of the authority.
I have already undertaken to make a statement about the White Fish Authority before the end of the year. I met the Chairman on 13th August, when we had a preliminary discussion of this and other aspects of policy.
I am grateful for the Minister's undertaking to make this statement by the end of the year. May we hope that as a result of the conversations and tours he has been making in the recess he has improved his earlier impressions of the White Fish Authority and that we shall see it strengthened and expanded?
I know that the hon. Gentleman takes a keen interest in this matter. I have seen the work done by the White Fish Authority in Hull during the recess. I do not want to be drawn into giving any more information about the authority at this stage.
If the White Fish Authority is to continue, may I ask the right hon. Gentleman whether he has discussed the possibility of a successor to Sir Charles Hardie? The industry thinks that he is an able administrator, but he has many, many directorships, including one with B.O.A.C. We feel that there should be another man in the post. Also, in view of the Government's policy about moving offices out of London, may I ask the right hon. Gentleman whether he has considered shifting the premises of the White Fish Authority to the capital of the fishing industry—Hull?
Without being drawn into a discussion about what is the fishing capital, may I say that all the points which the hon. Gentleman has mentioned are under consideration. I do not wish to be drawn into further discussion at the moment.
Has my right hon. Friend considered the amalgamation of the White Fish Authority with the Herring Industry Board?
That is another aspect which is being discussed.
Hill Sheep
21.
asked the Minister of Agriculture, Fisheries and Food what steps he is taking following his study of the position of the livestock industry to improve the conditions of hill sheep farmers.
My right hon. Friend announced on 6th October that the Hill Sheep Subsidy is to be increased by 7s. 6d. per head for the 1970 Scheme year to provide direct help for hill sheep farmers. He also announced that 1½d. per lb. was to be added to the guaranteed price for fat sheep for 1970–71. This will benefit the sheep sector as a whole.
Is the hon. Gentleman aware that many hill farmers in my constituency sold a great many sheep before the increase in prices and that the benefit of the increase went to lowland farmers, who were a good deal better off? Would the hon. Gentleman consider this problem of the hill farmers and do rather better?
I take the hon. Gentleman's point, which has not escaped our attention. However, the hill sheep subsidy has been increased by 30 per cent., which is not a bad balance. To have driven the flocks back to the hills has been no policy at all; the prosperity of the low ground sheep sector is essential for the prosperity of the hills. This is what we have tried to do.
Beers (Gravity)
22.
asked the Minister of Agriculture, Fisheries and Food if he will take steps to compel brewers to disclose the gravity of their beers; and if he will make a statement.
No, Sir.
Is not the Minister aware that the brewers claim that their products sell on flavour and not on strength and, therefore, there is no reason why this information cannot be disclosed? Even bearing in mind the close relations which the Government clearly have with the brewing industry, could the hon. Gentleman say how much longer beer drinkers have to put up with drinking products the contents of which they are unaware of?
I do not think that this is a matter for legislation; it is a matter for contractual arrangements. There has been very little change in gravity in the last several years. I think that most people would associate gravity with alcoholic strength, but it has nothing to do with it.
Does my hon. Friend realise that gravity has no direct relationship either to the cost of production or, as he has said, to the alcoholic content?
Yes, Sir.
Fertiliser Prices
29.
asked the Minister of Agriculture, Fisheries and Food what consultations he has had with fertiliser manufacturers in relation to price increases made after assurances given to the contrary by the manufacturers.
The assurances which the principal manufacturers gave in March related to list prices and I am satisfied, from the consultations which our officials have had, that they have been honoured.
Is my hon. Friend aware that the feeling persists that by cutting rebates and discounts manufacturers have put up their prices to quite a marked degree to the detriment of the customer?
There is a distinct difference, which is not always realised, between a rebate and a discount. Rebates have been maintained as well as the list prices. Discounts have not been maintained because of the different circumstances prevailing last year as opposed to the previous year. But, if it is any consolation to my hon. Friend, I should like to point out that prices are not up nearly as much as they were originally thought to be.
Agricultural Expansion (Credit)
30.
asked the Minister of Agriculture, Fisheries and Food whether he will take steps to ensure that sufficient credit facilities are made available to finance agricultural expansion.
Agriculture is already among the industries that have priority for bank lending for productive investment, and the Agricultural Mortgage Corporation has funds available to meet longer-term needs.
While I am sure that will console my farming constituents, will my right hon. Friend bear in mind that many farmers will have real difficulty in financing next year's crop, let alone agricultural expansion?
If I may give my own experience on this matter, my own credit facilities are a great deal better at this moment than they were, in my view entirely due to the change of Government.
Is that due to the Minister's new salary or to his farming propensities?
It is certainly not due to the first suggestion.
Would my right hon. Friend not agree that the best way the Government can help farmers and other industries is by restoring the economy and confidence in the £ and bringing down interest rates?
Yes, Sir.
Agricultural Incomes And Wages
31.
asked the Minister of Agriculture, Fisheries and Food if he will take steps to enable both the income of farmers and the wages of agricultural workers to reach a level sufficient to prevent the movement from agricultural to other occupations.
The Government are committed to selective agricultural expansion. The industry's continuing rise in productivity should enable it to achieve this notwithstanding some further decline in the labour force.
Will the Minister bear in mind the fact that in Dorset, which is a wholly agricultural constituency, with 4,700 farms and holdings and with only 4,300 agricultural workers, of whom 498 are youths aged under 19, the drift from the land because of the greatly increased industrial wages elsewhere makes it increasingly hard to carry out tasks like fencing and ditching?
I realise that there are problems, but it is a great credit to the agricultural industry that it has been able to increase its productivity rate as much as it has.
"Strategic Plan For The South East"
35.
asked the Minister of Agriculture, Fisheries and Food what consideration he has given to the references to agriculture in paragraphs 4.17 to 4.19 and figures 16 and 35 in the Government report, "Strategic Plan for the South East", published by Her Majesty's Stationery Office; and if he will make a statement.
This report has been published to allow an opportunity for consultation and discussion with interested parties, and I would ask my hon. Friend to await the statement of the Government's collective views which will be made in due course by my right hon. Friend the Secretary of State for the Environment.
Has the hon. Gentleman noticed that protection against encroachment on agricultural land apparently is to be given only to areas of special quality? In these circumstances has he noticed that there appears to be no such land in the county of Sussex?
In my view there should be the greatest economy in land utilisation, and where land is earmarked for future development its farming should be prejudiced as little as possible. I will take note of the point my hon. Friend has raised.
Agricultural Marketing Boards
36.
asked the Minister of Agriculture, Fisheries and Food if he will encourage the present system of agricultural marketing boards.
Where boards are in the public interest: Yes, Sir.
I welcome that reply. Would the Minister agree that this is inconsistent with his previously declared intention of non-interference with the market forces in agriculture?
One must balance the advantages of the boards. They provide producers with stability, they enable production to be increased, and thereby help the balance of payments.
Would the hon. Gentleman give the House a categoric assurance that the operation of these boards will in no way be inhibited in the event of our entering E.E.C. on the present provisions of the Treaty of Rome?
This is an important matter for negotiation. I can certainly say that many of our boards have the admiration of members of the Community.
Agricultural Production And Distribution
37.
asked the Minister of Agriculture, Fisheries and Food if it is his policy that competition should be encouraged throughout agricultural production and distribution.
Yes, wherever appropriate.
When one has in mind the answer to the previous Question, is it not true to say that Government policy is to give the highest possible income to farmers while at the same time imposing the maximum cost on the consumer?
No, Sir.