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Commons Chamber

Volume 892: debated on Thursday 22 May 1975

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House Of Commons

Thursday 22nd May 1975

The House met at half-past Two o'clock

Prayers

[Mr. SPEAKER in the Chair]

Royal Assent

I have to notify the House, in accordance with the Royal Assent Act 1967, that the Queen has signified Her Royal Assent to the following Acts:

  • 1. Evidence (Proceedings in Other Jurisdictions) Act 1975
  • 2. Farriers (Registration) Act 1975
  • 3. Air Travel Reserve Fund Act 1975
  • 4. Scrabster Harbour Order Confirmation Act 1975
  • 5. Stornoway Trust Order Confirmation Act 1975
  • 6. London Transport (Additional Powers) Act 1975
  • 7. United Dominions Trust Act 1975
  • 8. Merseyside Metropolitan Railway Act 1975
  • 9. Corn Exchange Act 1975
  • Oral Answers To Questions

    Agriculture, Fisheries And Food

    Agricultural Production

    1.

    asked the Minister of Agriculture, Fisheries and Food if he will make a statement on his estimate of the combined effects of the imposition of the capital transfer tax, the Community Land Bill, and the proposals for wealth tax and re-rating agricultural land on agricultural production in the United Kingdom.

    The Government announced in the White Paper "Food from our own Resources" (Cmnd 6020) that they were setting up a review of the effect of capital taxation on agricultural production. This interdepartmental study and the work of the Select Committee on Wealth Tax and of the Layfield Committee on local government finance are now in progress. It is not possible, therefore, to give a worthwhile estimate at this stage.

    Does the Minister not agree that if he is to achieve his home production of food targets, as set out in the White Paper, it is essential that more and not less capital is invested in agriculture? Does he not accept that the measures either already passed in this House or threatened are very likely drastically to reduce the capital invested in agriculture? Will he, therefore, make much stronger representations—the matter cannot wait for the review on the measures which are either going through this House or threatened—than he did in the case of capital transfer tax?

    I am aware that there is concern about this and its effect on investment in the industry. As I have said, there will be an examination of this and as soon as that is complete I may be able to make a further statement.

    In addition to all these potential burdens, will the Minister tell us how he thinks farmers could deal with vastly increased herds of stock if people like herdsmen and shepherds cannot live in close proximity to the animals they look after?

    The House is entitled to know how the Minister reconciles the aims of his Ministry, which were published in the White Paper, to establish a virile, indigenous domestic agricultural industry, with the proposals of other Government Departments in relation to capital transfer tax, wealth tax, the public acquisition of land and the abolition of tied cottages, and so on, which are all intent on destroying the establishment pattern and structure of British agriculture.

    I cannot accept that. That is a complete exaggeration, and the hon. Gentleman knows it. As long as I am Minister of Agriculture I shall make certain that nothing like that ever happens.

    Agricultural Land

    3.

    asked the Minister of Agriculture, Fisheries and Food if he will give advice on the continued use of agricultural land as such which is obtained by compulsory purchase by local authorities or under the proposed community land legislation before that land is taken up by the local authority for development.

    The Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food
    (Mr. Gavin Strang)

    Local authorities already acquire land under existing powers and are aware of the need to manage it effectively prior to development. My right hon. Friends the Secretaries of State for the Environment and Wales will be giving further advice as necessary to all authorities acquiring land under the community land scheme.

    Is the Minister aware that local authorities exercising their duties under the Community Land Bill will control approximately 750,000 acres at the current loss rate of 75,000 acres a year? Does he not agree that the short-term usage of land and inability to plan for land so blighted by local authority acquisition will not help the production of food from our own resources and will make nonsense of the Government's White Paper? Does he not further agree that there is a fundamental incompatability between the policy of the Minister of Agriculture, Fisheries and Food and that of the Secretary of State for the Environment on the question of land acquisition?

    No, I cannot accept the bulk of what the hon. Gentleman has said although I agree that where land is scheduled for development it is desirable and in the national interest that it should be retained in agricultural production until the last possible day.

    Does the Parliamentary Secretary realise that unless he persuades his right hon. Friend the Minister for Planning and Local Government to remove agricultural land entirely from the sphere of the Community Land Bill, it will be disastrous for agriculture?

    I cannot accept that. I am sure that the right hon. Gentleman will recognise that a substantial proportion of land which has been developed in the past has been agricultural land, and that situation will continue in the future. That problem will remain with us.

    Is my hon. Friend aware that many local authorities already possess agricultural land and have a very good record in its management?

    I am grateful to my hon. Friend. That is indeed the case. Under the Community Land Bill there will be greater scope for them to deploy these resources.

    Glasshouse Industry (Aid)

    5.

    asked the Minister of Agriculture, Fisheries and Food whether he will now make a further statement on the progress of his negotiations with the EEC over aids for the glasshouse sector of horticulture.

    I reported my latest discussions with the EEC Council of Ministers to the House on 1st May.

    Have not the Lardinois negotiations and the distress in the horticulture sector in the last five months shown absolutely clearly that the subsidy should never have been removed last December?

    As the hon. Gentleman knows full well, the subsidy was a temporary one. We acted long before our Community partners and, indeed, the rate given was much higher, too.

    Is it true that when the Minister was in Brussels a short while ago he voted to allow States within the Community to continue to pay the subsidies after the present subsidy expires? If he did that, how can he possibly refuse that subsidy to British growers when, if it is not paid to them, they will be exposed to unfair competition from other countries which he has allowed to pay that subsidy in the Community?

    The hon. Gentleman cannot get away with making wild accusations such as that. [Interruption.] I hope that hon. Members will let me answer the question. The hon. Gentleman knows that the deal which has been suggested, and which still has to be examined, is part of a package deal which involves not merely a direct subsidy of the kind about which we are talking but also modernisation of glasshouses, and so on. I shall be discussing this when I go to Luxembourg on Monday.

    Is the Minister aware that our glasshouse growers have not only had to suffer the removal of the subsidy on oil entirely but are also having to face unfair competition from countries such as Romania, from which large quantities of tomatoes are being dumped here, and Colombia which is dumping carnations? If he is not to take action on these subjects, surely he must reintroduce the oil subsidy.

    I shall watch closely the events affecting this matter. However, I cannot make any statement at this stage. We take the view that we must remember the national interest as well. There are other industries which could also be subsidised.

    Lamb, Butter And Cheese (Imports)

    6.

    asked the Minister of Agriculture, Fisheries and Food what imports levies and customs duties on imports of lamb, butter and cheese from outside the Common Market would cease to be payable if the United Kingdom withdrew from the Common Market.

    In such circumstances, the import régime for these and other agricultural commodities would be reviewed in the light of domestic agricultural policy and the negotiations for withdrawal.

    Is it not a fact that we must pay these levies and duties solely because we are a member of the Community? Does not this give the lie to the myth that these foods are as cheap in the Community as they are outside it? Could we not reduce the prices of these foodstuffs at a stroke simply by withdrawing from the Community? Is it not a fact that these quite unnecessary taxes bring no benefit to the British people, as the British Government are acting simply as tax collectors for the Community, and that this will raise prices to much higher levels by the end of the transition period?

    I hope that my hon. Friend and those who are cheering him will remember that we did not have free trade in these products before we went into the Community. [Interruption.] May I give my hon. Friend the facts? There was a tariff for all lamb, including New Zealand supplies, amounting to about 8 per cent. There was a duty of about 15 per cent. on cheese imports—except those from the Commonwealth, which were duty-free. Butter imports were duty-free but strictly controlled by import quotas. I hope that my hon. Friend will realise that there is no cheap food in the world today. [Interruption.] If my hon. Friend will only have the courage to rise and put a supplementary question, I shall be delighted to answer it.

    Will the Minister confirm that the estimates for this year of the price of a carcase of New Zealand lamb show that two-thirds of the cost will arise from transport and handling charges and only one-third will be attributable to the actual production of the lamb?

    Of course. The hon. and learned Gentleman is sensible and rational on this matter.

    In what quantities are these foods available in the world? Are the quantities available sufficient to meet the needs of the British people at this time, by comparison with, say, 20 years ago? Has not the quantity position become even more important than the prices position?

    I agree. That is why I believe that with the terms which we have negotiated—we have recommended to the country that it accepts what we have achieved—we shall guarantee supplies. That is very important in a world in which we see great fluctuations of world prices.

    Does my right hon. Friend accept that I am very willing to ask questions whenever Mr. Speaker cares to call me, and that it is not a question of courage? Will he explain just why the Common Market insists on maintaining the CAP if there is no food outside the Common Market which is cheaper than that within it?

    I think it is reasonable to have a market which has been guaranteed, with prices negotiated every year, in a large community. I see nothing wrong in that. [Interruption.] I hope hon. Members will listen. The basic objectives of the CAP, balancing increased production and the interests of consumers, were precisely the basic objectives of the 1947 Act.

    Dairy Herd

    7.

    asked the Minister of Agriculture, Fisheries and Food what was the reduction in the national dairy herd in 1974.

    In December 1974 the United Kingdom dairy herd was 152,000 head smaller than a year before.

    I thank the Minister for that reply. What assurance can he give to dairy farmers that they will receive an adequate price for their milk this autumn, in view of the fact that it is important that dairy farmers should be enabled to produce a higher quantity per cow and produce more cows for the milk herd?

    We certainly wish for an expansion in milk production. In order to secure that, we shall have to give producers an adequate return. I remind the hon. Gentleman that since coming into office the present Government have increased the guaranteed price for milk by 32 per cent.

    Will my hon. Friend confirm that the reduction in the dairy herd last year was in line with the previous Government's policy of persuading farmers to go out of dairy production into beef production? The previous Government had a great deal of success in achieving that aim. However, will my hon. Friend confirm that it is the present Government's policy to persuade people to remain in dairy farming? Will he, therefore, comment on the question whether the reduction in the dairy herd is definitely slowing down?

    I assure my hon. Friend that expansion of dairy production is central to our White Paper on increased food production. I agree with him that the dairy conversion scheme had an influence but, more significantly, the very severe erosion of dairy producers' returns the previous winter created a lack of confidence in the industry.

    16.

    asked the Minister of Agriculture, Fisheries and Food if, in the light of the March sample survey results of livestock numbers in Great Britain, which showed that the national dairy herd was estimated to have fallen by 126,000 cows, or by 4·4 per cent., and that the number of cows in calf has fallen by 8 per cent. compared with March 1974, he will make proposals designed to expand the national dairy herd in accordance with the recent Government White Paper "Food from our Own Resources".

    We have already raised the guaranteed price for milk to a level 32 per cent. higher than that determined by the last administration a year ago. As indicated in the White Paper, we are continuing discussions with the interests concerned to determine what measures it would be right and practicable to take in order to achieve the expansion.

    Will the Minister bear in mind that the Government's aim and the record of what has happened simply do not tally, and that if he wants extra milk production much more will have to be done? Regarding the very interesting phrase, "food from our own resources", will the hon. Gentleman bear in mind that the resources must first be given to the British farmer before he can produce the food?

    The Government accept responsibility to take action following publication of the White Paper last month, but I am sure that the hon. Gen- tleman will agree that we cannot accept responsibility for the disastrous situation that we took over from the previous Government.

    How does my hon. Friend propose to resolve the conflict between the emphasis in the White Paper on expanding dairy production and the objective of the Community stocktaking paper on the common agricultural policy, of reducing dairy production?

    My hon. Friend has raised a pertinent and fair point. We, as a nation, must accept that in or out of the Community we have a balance of payments problem. If it is in our national interest to produce more food, we should do so in or out of the Community.

    What was the cause of the miscalculation which resulted in the previous as well as the present Government's measures which have reduced the size of the dairy herd?

    I suspect that there are a number of answers to that important question. Certainly one factor has been the over-emphasis put on beef by the previous administration.

    Does my hon. Friend accept that we are delighted with his answer that in or out of the Market we intend to pursue our own best interests? Does that mean that we can now have a guarantee from the Front Bench that they will resist proposals to cut back on dairy production in the Market as a whole and that British interests will not be cut back because of our balance of payments problem?

    I think that my hon. Friend will accept that if we are in the Community my right hon. Friend will continue to act in the best interests of the British people.

    Will the Minister tell us where these much-needed resources will come from? Is he aware of the need to make the necessary adjustment in the milk price before the autumn?

    The hon. Gentleman will appreciate that we are having discussions with the industry. He would not, therefore, expect me to pre-empt those discussions today.

    Grains And Wheat (Import Levies)

    8.

    asked the Minister of Agriculture, Fisheries and Food what estimate he has made of the cost to the United Kingdom in 1975 of the reimposition of import levies on grains and wheat.

    Up till now any levies have usually been cancelled out by Community subsidies. The extent to which this will continue to be the case will depend on movements in world prices and exchange rates, which I am unable to forecast.

    Will my hon. Friend confirm that the imposition of these levies demonstrates beyond any refutation that world prices are currently below Community prices? Will he also confirm that in so far as tariffs existed previously on the import of food, as suggested by our right hon. Friend, those tariffs accrued to the British Exchequer and not to continental farmers?

    I think that my hon. Friend will recognise that in or out of the Community, as he has acknowledged, we must protect our own producers. He will also recognise the fact that what counts in terms of British consumers is the net effective levy. The net effective levy this day on imported wheat is negative. In fact, at present there is a subsidy of about £1 a ton on imported wheat. The position is that the compensatory amount is almost exactly equal to the overall Community levy.

    Beef Production (European Community Grants)

    11.

    asked the Minister of Agriculture, Fisheries and Food how many dairy farmers have (a) received and (b) applied for the EEC grants available for changing from milk to beef production; how much has been paid out; and whether he intends to continue with this policy.

    19.

    asked the Minister of Agriculture, Fisheries and Food how many applications were received for entry to the Dairy Herd Conversion Scheme; and if he will quantify the reduction to date, and the potential reduction by 30th June 1975 in the size of the United Kingdom dairy herd.

    When the Dairy Herd Conversion Scheme closed to applicants on 31st December 1974, 8,724 farmers had applied in respect of 324,306 dairy cows. However, 4,630 applicants have so far taken advantage of this scheme and received grants, of which 50 per cent. is recoverable from FEOGA funds. It is not possible to estimate the effect of the scheme on the national dairy herd, as many of the better milk animals are now to be found in other herds.

    I thank the Minister for his answer, each point of which I have carefully noted. In the light of the experience of the Dairy Herd Conversion Scheme and of the present consumption patterns of liquid milk by the consumer, how, and to what extent, have the consumer and the farmer benefited from this scheme?

    This scheme was introduced in October 1973. The hon. Gentleman will appreciate that it is in the interests of the industry to strike the right balance between beef production and milk production.

    How does the Minister see this helping to solve the cyclical problem of the beef producers?

    This does not help to solve the cyclical problem of the beef producers. The breakthrough achieved by my right hon. Friend in Brussels in obtaining a variable premium—which gives, in effect, a guaranteed price, which we used to have—will help.

    Will the Minister explain the way in which the EEC grants for switching from dairy farming to beef will make the beef mountain higher and higher, so that we can sell it more cheaply to the Soviet Union?

    My right hon. Friend made it clear that the Government are opposed to the sale of subsidised food to Russia.

    Milk

    12.

    asked the Minister of Agriculture, Fisheries and Food what is the level of milk production based on the latest available figures and as compared with a year previously.

    The latest estimate is that in 1974–75 the total United Kingdom sales of milk through marketing schemes were 2,891 million gallons. This compares with a figure for 1973–74 of 2·929 million gallons.

    Will the Minister go a little further than he did in answer to my hon. Friend the Member for Macclesfield (Mr. Winterton) and say exactly how he intends to increase milk production so as to make certain that there is sufficient for the production of butter and cheese?

    I confirm that those are the Government's objectives. Our White Paper was published only last month. We are at present discussing with the industry how best to achieve its objectives.

    Will my hon. Friend confirm that at the commanding heights of the European food economy we shall find not only butter and beef mountains but a dried milk mountain? Successive Governments have followed a cheap food policy whereby the farmer was subsidised and given deficiency payments. Does my hon. Friend not feel that that represents a better deal for the British consumer than the dear food policy of the Common Market?

    I agree that in or out of the Community we wish to secure a balance between supply and demand. Long before we entered the Community this and previous Governments practised support buying. We bought potatoes in the past and took them into intervention—on some occasions on a substantial scale.

    Will the Minister state his intentions regarding milk production? Cheese production will end earlier this year than for many years past. Creamery equipment will be left standing. Capital which has been invested will be useless. How will the Minister increase the total production of milk this year?

    It is a little rich that the hon. Gentleman, whose Government left the milk industry in such a sorry state, should criticise the Government for not yet having taken action on a White Paper which was published last month and which followed three increases in the price of milk.

    Food Production (White Paper)

    13.

    asked the Minister of Agriculture, Fisheries and Food what steps he will take to implement the Government's aims expressed in the White Paper "Food From Our Own Resources".

    15.

    asked the Minister of Agriculture, Fisheries and Food what proposals he is considering to facilitate the expanson of British agriculture as outlined in the Government White Paper entitled "Food From Our Own Resources": and if he will make a statement.

    The Government stated in the White Paper "Food From Our Own Resources" that they would continue discussions with the interests concerned during the coming months to determine whether there are specific measures which it would be right and practicable to take. I have already met the farmers' unions and agreed that among the areas to be further examined are the effectiveness of capital and production grants, the effect of capital taxation and the green pound and beef market prospects.

    Does not the Minister realise that in sparsely populated counties such as Dorset it is not possible to maintain livestock without the provision of tied cottages, so that those people responsible for livestock can live reasonably close to their charges?

    I have noted what the hon. Gentleman said. I am dealing specifically with the proposals in the White Paper. I agreed to meet the unions concerned. I have already met their representatives and we shall have continuing discussions. I have met representatives of the farmers' unions not only of England and Wales, but of Scotland and Ulster also.

    The Minister will be welcome in my constituency next week, when he comes as a guest of the Bath and West Show, for making that statement on the White Paper. Does he realise that he will be 100 times more welcome if he tells my constituents that he has been able to carry the Government with him in suggesting that by giving the farmers a decent return—not by interfering with their capital and trad- ing by means of ridiculous taxes—they will be enabled to produce the results we all desire?

    I accept that. I believe that the farmers' unions are right to stress their agreement with the principles of the White Paper. This White Paper, which is a very good document, has been accepted. In the end it will be the way in which we apply our resources which will be important. I am grateful for what the hon. Gentleman said about his constituents. I hope we have a pleasant day.

    Will my right hon. Friend, after his consultations with the industry to turn the hopes of the White Paper into food for the consumers, bear in mind the urgent need to give extra assistance for the development of agricultural co-operation? Will he also strengthen the rôle of the Agricultural Development and Advisory Service?

    I am grateful for what my hon. Friend said. He knows that I introduced the central council in my 1967 Act. I believe strongly in agricultural co-operation. The record in this regard has been exceptionally good and all parties have subscribed to it.

    Is the Minister aware that the Opposition welcome the target set out in this important White Paper? Is he further aware that the White Paper has met with a deal of cynicism from the industry, partly because we have seen from previous Labour Governments in 1965 and 1968 similar documents which were not backed by cash and which did not therefore enable the targets to be reached? Is he aware that we all hope that the cash will be produced this time. To show that the Minister has the determination to achieve these targets, will he give us an undertaking that there will be adjustments before the autumn so that we can achieve them?

    The hon. Gentleman speaks of cynicism. There is always cynicism in certain quarters. I hope that the hon. Gentleman will look at the history of agriculture in the post-war period. I remember the 1947 Act and the target set in the White Paper which was issued by the late Tom Williams. That was accepted by the industry. The proposals on agriculture were accepted in the national plan produced by the second Labour Government, of which I was a Minister. I agree that the results will depend on what we put into the industry and the state of the market.

    Farm Safety

    14.

    asked the Minister of Agriculture, Fisheries and Food what representations have been made to him regarding safety on farms.

    From time to time my right hon. Friend has received representations from interested organisations on various aspects of farm safety.

    Does my hon. Friend accept that in principle I agree that the Health and Safety Commission should take over the safety rôle of the agriculture safety inspectorate? Does he further accept that the Society of Civil Servants has expressed grave doubts about the recent proposal for the reorganisation of die Factory Inspectorate by the Health and Safety Commission? Will he assure the House that, before the transfer of the agricultural safety office is made, discussions will be entered into so that the reorganisation can be done in conjunction with the agriculture safety inspectorate and not above its head?

    I am grateful to my hon. Friend for his remarks. I can give him the assurance that he seeks. I am sure that agricultural workers will benefit from the deep interest that he continues to take in the work of the Health and Safety Commission.

    Does the Minister appreciate that no one is keener than the farmer on having safety on farms? Does he also appreciate that the regulations regarding tractors produce certain difficulties, particularly in respect of the noise element, because British tractors, especially in horticulture, do not seem to comply with the regulations? Will he look at this matter with a view to ensuring that British manufacturers comply with the regulations?

    I assure the hon. Gentleman that the Government are seized of that point. We shall be making an announcement very shortly indeed.

    Eggs

    20.

    asked the Minister of Agriculture, Fisheries and Food what representations he has made to the French Government in an attempt to stop the under-cutting of the British egg market by imports of French eggs.

    17.

    asked the Minister of Agriculture, Fisheries and Food what proposals he has to deal with the difficulties facing British egg producers and whether he will make a statement.

    18.

    asked the Minister of Agriculture, Fisheries and Food what action he intends to take to safeguard the future of the United Kingdom egg producers.

    Prices paid by packing stations for eggs rose in April to profitable levels, but have since fallen. Feedstuff prices have also fallen. Packing station throughput is again increasing. Imports are now at a lower level and eggs are being exported. We are continuing to watch the situation carefully.

    In the meantime, the French Government have completed the procedures necessary to open up their market to imports from this country. For the longer term we have begun discussions with industry representatives about their ideas on how the present arrangements for supporting egg production within the Community might be improved, and these discussions will continue.

    Does the right hon. Gentleman accept that I am delighted that he has succeeded in persuading the French and the Community to take these measures to assist our poultry farmers? Does he further accept that the British egg producer is infinitely more efficient than the French producer, and managed to produce 100,000 tons more eggs than the French from two-thirds as many poultry? If any situation should arise which threatens bankruptcy to our egg producers in the near future, will the Minister take further instant action in the matter to stop them going bankrupt?

    I am glad that the hon. Lady has praised the British egg industry. That is why I am not afraid of competition. Indeed, as I have said, exports are increasing. For example, in March we sent over 37,000 boxes of eggs to West Germany, over 23,000 boxes of eggs to the Netherlands, and 42,000 boxes of eggs to Ireland. I am glad to encourage this business.

    Does my right hon. Friend agree that it would have been foolish to have taken hasty action which could have threatened that export market? Will he confirm that, whilst it may be regrettable to import the substantial number of French eggs which were brought into this country this year, over the past 12 months our exports of eggs have been greater than our importation?

    I have given the figures. I hope that hon. Members will appreciate that some of our egg producers experienced difficulties, of which I am aware. All I am asking is that we continue to play our part as well in the export sphere.

    Is the right hon. Gentleman aware of indications that the price of eggs may fall drastically within the next week or so? If that happens, will he hold himself ready to take immediate steps to hold up the price of eggs to the British producer?

    I hope that the hon. Gentleman will not be gloomy about the matter at this stage. After all, markets are often affected by talk of confidence or lack of confidence. There may be fluctuations. That has always been so, I am glad to pay tribute to the fact that we can be as competitive as the French.

    Is my right hon. Friend aware that, despite the hasty decision by the leadership of the National Farmers' Union regarding the Common Market, egg producers have been attempting to blockade the ports to which French eggs are sent at dump prices? Will he consider using the much-vaunted veto in Brussels to protect the egg producer until the Common Market has been kicked into some sense over the egg régime in Europe?

    I hope that my hon. Friend will agree that I object to people adopting violent or illegal methods of protest. I think the whole House agrees with that. However, I pay tribute to the National Farmers' Union because its President, Sir Henry Plumb, has taken the initiative in Europe—

    My hon. Friend should listen. Sir Henry took the initiative. I was talking about his initiative in relation to COPA.

    Deep-Water Fish

    21.

    asked the Minister of Agriculture, Fisheries and Food if he will make a statement on the results of the latest research into the commercial prospects for deep-water fish from the Irish Channel and other coastal waters.

    Research and development work on non-traditional species is conducted on a continuing basis with the emphasis currently being placed upon the prospects for blue whiting. The results obtained suggest that these stocks offer the better prospects for commercial exploitation.

    When can the British housewife expect to see blue whiting on the market as a commercial fish?

    I cannot say when. It is the most promising of all the species to be fished. There are large stocks, and a lot of research is being done. Blue whiting produces a good fillet. It is rather small, but of good quality.

    Does not the Minister consider that some further investment should be put into fish farming, which is undertaken in many parts of the country, particularly on the West coast of Scotland, where the usual types of fish, such as sole, are being produced easily? Could not fish production be substantially expanded by this method?

    I agree, but it must be a commercial proposition, and it will basically have to be undertaken by private enterprise. A tremendous amount of research is being done. In the constituency of the right hon. Member for Lowestoft (Mr. Prior) there is a fine research centre which he has encouraged. It does considerable research on fish farming.

    Has not the White Fish Authority estimated that there are 12 million blue whiting between North-West Ireland and the Orkneys? Is it not a fact that there is no difficulty in catching them but that the filleting is difficult because the fish are so small?

    I know that my hon. Friend, who represents the fishing industry and is chairman of the all-party committee, is interested in this subject. He is right in quoting the assessment of the White Fish Authority. The problem arises from the size of the fish and the difficulty of processing.

    Is not the Minister aware that if other countries unilaterally extend their limits the pressures on British home waters will increase? What progress is being made in the Community about the proposals for protecting our home waters?

    I have stated my position. I made a major statement when I last visited the Community. When I put our proposals to the Community I said many Times—and I repeated it yesterday in the Standing Committee, where it was appreciated even by Opposition Members—that I shall defend the British fishing industry because it is the largest in Europe and we have the largest coastline. Any decision on limits must be taken by collective agreement.

    Common Fishing Policy

    23.

    asked the Minister of Agriculture, Fisheries and Food if he is in a position to announce the proposals which he will advance to the European Economic Commission on the new common fishing policy at present under discussion.

    No. I made a full report of the statement I made to the EEC Council of Ministers on fisheries matters on 15th April and to add to that at this stage would be premature.

    We much appreciate the visits which the Minister and the Minister of State have made to fisheries in various constituencies, but is the right hon. Gentleman aware that our greatest concern is to achieve proper conservation provisions to protect our coastal and other waters?

    I agree. Conservation is important. I recognise that there has been a threat to the herring industry because of too much industrial fishing. Only yesterday the North-East Atlantic Fisheries Commission commenced work in London, and this matter will be discussed at that conference. We have to get agreement on this, and I have already had talks in the Community about it with individual Ministers.

    What progress is my right hon. Friend making with the continuation of the subsidy to the fishing industry? Numerous vessels are laid up and, although the fish may be there, we may not have the vessels to catch them.

    This matter was raised yesterday. I wish that my hon. Friend could have attended the Standing Committee. I have introduced a scheme which gives £6¼ million to the trawler fishing industry.

    I am grateful to the Minister for the trouble he has taken in talking to our Common Market colleagues about this matter, but will it be possible for him to arrange regular meetings with the industry so that it can be informed about the progress of the negotiations, as it is worried about timing?

    I am grateful to the right hon. Gentleman for what he said. I should welcome meetings with the fishing industry. Representatives of the British Trawler Owners' Federation come to see me frequently but, in addition, it would be useful if in this country, as in Scotland, there were a special inshore section. I should welcome an official organisation to which I could talk.

    Referendum

    Q1.

    asked the Prime Minister what engagements he has undertaken as part of the referendum campaign.

    I have already made a number of speeches in the country commending support for the Government's recommendation to continue Britain's membership of the European Community and I shall be undertaking further speeches of this kind before 5th June.

    Will the Prime Minister consider cancelling those future engagements so that he will be in a more neutral position to carry out the wishes of the British people when they vote to come out of the Common Market?

    I am grateful to my hon. Friend for his consideration, but the Government made a very clear recommendation in the House, and I am doing the same in the country.

    As a contribution to the referendum campaign, will the Prime Minister consider republishing and circulating widely his "Won't take 'No' for an answer" speech?

    I should be happy to do so, Sir. I used that phrase in 1967 when General de Gaulle announced his veto on negotiations, to make clear that we would not take "No" for an answer but would press until we obtained negotiations. Negotiations were ultimately agreed to and carried out by the Conservatives when in government. We have renegotiated the terms, and what I said in 1967 has been abundantly justified by what has happened since.

    They tell me that Nelson was against the Common Market as well. When my right hon. Friend makes speeches explaining why we should stay in the Common Market, will he please refrain from using the truth-bending remarks that have been made by some of his colleagues? It has been said that one reason for Britain to stay in is to control multinationals. How farcical is such a remark, taken in the context of the multinationals pouring thousands of pounds into the "Keep Britain in Europe" campaign.

    I sympathise with my hon. Friend on his affliction and express the hope that on this issue he will now see more clearly through one eye than he sometimes does through two. [An HON. MEMBER: "In the country of the blind the one-eyed man is king."] I am trying to be sympathetic to my hon. Friend.

    My hon. Friend used the emotive phrase "truth-bending remarks". I find that all those who feel strongly on one side of the Common Market case, whichever it is, regard a statement made by the other side as truth-bending. The country will decide when it has heard the full arguments.

    Does the Prime Minister recollect that when I asked him on Tuesday about the assertion of the Secretary of State for Industry that 500,000 jobs had been lost through the European link he rejected the figure? Will he now reject the underlying contention that the link has led to any loss of jobs, bearing in mind that most companies take the contrary view?

    This is a matter which is much argued. I do not agree with what my right hon. Friend said. As I made clear, no one can say that no jobs have been lost. Some have been lost. Equally, jobs have been gained as a result of a change in the movement of trade—[Interruption.] I am treating the right hon. Lady's question as serious, unlike some hon. Members sitting behind her. Inevitably, when a market is opened more freely to imports—by the removal of tariffs, or in other ways—there will be more goods coming in, which may throw British people out of work. Equally, because those markets are open to us there will be more jobs at home in Britain. I have no reason to think that the net result has been an increase in unemployment.

    Cbi And Tuc

    Q2.

    asked the Prime Minister when he next expects to meet leaders of the TUC and the CBI.

    I regularly meet leaders of both the TUC and CBI at the NEDC and on other occasions and, as I have told the House, I shall be chairing the next meeting of the NEDC on 17th June.

    When the Prime Minister told the CBI last Tuesday that the Government would not nationalise Chrysler if it were bankrupted by industrial militancy, did he really expect to be believed?

    I do not know what the hon. Gentleman thinks he is getting at with that rather silly question. However, I shall tell the hon. Gentleman what I said. I said that I would not be a party to a single penny of taxpayer's money being spent if the afflictions that beset Chrysler were caused by a strike which should be settled by appropriate constitutional means.

    Will my right hon. Friend go further than that and explain to the TUC and the CBI, and perhaps to some of his right hon. Friends, that it is not in the interests of this country to fossilise our industrial structure by keeping men employed, seemingly for its own sake, when the goods they make cannot be sold at a profit?

    Of course, my hon. Friend is right. There is no question of fossilisation as regards the future use of the NEB or any of these other matters. However, when there is a reasonable prospect that a firm can be profitable or viable in the future, and can maintain employment in the interval, I do not see any reason for objection to be taken by either side of the House. After all, that was surely one of the motives of the famous Sections 7 and 8 of the Conservative's Industry Act of 1972. That measure was supported at least by some Opposition right hon. and hon. Members, although I am not quite sure what their attitude is today.

    Has the right hon. Gentleman had reported to him what occurred in Committee on the Employment Protection Bill this morning regarding postal votes, in that the Conservative and Liberal Parties—

    Order. We cannot have any reference on the Floor of the House to what happens in Standing Committee until the Committee has reported to the House.

    I give notice, Mr. Speaker, that I shall seek to raise a point of order at 3.30 in view of the Prime Minister's statement on Tuesday.

    Does my right hon. Friend accept that many of his hon. Friends are very concerned about the rising level of unemployment? When my right hon. Friend next meets the TUC and the CBI, will be discuss further the temporary employment subsidy scheme? Is it the Government's intention to restrict the scheme to development areas, or will it extend to other needy areas?

    This problem is being continually discussed with both the TUC and the CBI, and it will no doubt be discussed at the next meeting of the NEDC to which I have referred. The temporary employment scheme will be debated in the House when full authority is sought from the House to introduce it.

    At the next meeting of NEDC will the Prime Minister discuss with the TUC and the CBI the whole question of payment from Government funds for votes by post for trade union elections? Does the right hon. Gentleman still stand by the forthright and helpful statement that he made on Tuesday in answer to a question from me, in view of the fact that some Ministers of his Government do not seem to have got the message?

    As regards discussing these matters at the NEDC, the right hon. Gentleman, who, I think, has held appointments that qualified him to attend the NEDC, will know that they are not the sort of things that are normally discussed. I have no doubt that other opportunities will arise in other forums and at other meetings. I should make it clear, as a point of order has been raised, that when the right hon. Gentleman asked me the question the other day, I said that I had had no report from the Committee. Of course, that was the position of the House. I have had no report, and that is still the position. The view I expressed is certainly my view. I want to see more postal voting. As we have not had those reports from Standing Committee it is not possible to give an answer on the subject of the provision of Government funds.

    Is the Prime Minister aware that many people think that the initiative of Mr. Jack Jones is of value, and welcome the Government's intention to follow it up, and hope that this will lead to fruitful discussions with all the parties concerned?

    I am grateful to the right hon. Gentleman for what he said. When I addressed the CBI the other evening I spoke rather in the same terms as the right hon. Gentleman has used. I hope to have the opportunity to raise this matter in the debate this afternoon if, Mr. Speaker, I am successful in catching your eye.

    When the Prime Minister next meets the TUC, will he assure it that the Government have no intention of interfering with the internal balloting arrangements of any trade union?

    I have expressed my view on this matter. I have expressed it in the House previously, and I have confirmed it today. What I said on Tuesday, and what I repeat, is that when we see the reports of the discussions that have taken place in Committee, and when we have heard the views of other people, we shall consider whether there is anything that the Government can do in this matter. We have taken no decision and we have had no collective discussions on the matter. I gave the answer as I felt it to be the right answer to give the right hon. Gentleman.

    National Economic Development Council

    Q3.

    asked the Prime Minister whether he will take the chair at the next meeting of the NEDC.

    Q4.

    asked the Prime Minister when he next expects to take the chair at the NEDC.

    Q8.

    asked the Prime Minister whether he will be taking the chair at the next meeting of NEDC.

    Q10.

    asked the Prime Minister when he next intends to take the chair at the NEDC.

    I refer the hon. Members and my hon. Friend to the reply which I gave to my hon. Friend the Member for Gateshead, West (Mr. Horam) on 20th May.

    Will the right hon. Gentleman now answer instead of evading the question which was asked of him by my hon. Friend the Member for Melton (Mr. Latham)? How does he expect strikers to believe that the Government cannot be forced into taking over their companies as long as he retains the Secretary of State for Industry as a member of his Cabinet?

    I think that the hon. Gentleman is a little obsessive on this question. Indeed, the Conservatives all are, the whole lot of them. If only they would give a little more of their minds to forming a policy on industrial matters! Perhaps we shall get that this afternoon. I made it clear in January in my constituency, where there are many car workers, that we were not going to put money into the car industry in respect of continued strikes. I made that clear, and that is clear in the monitoring arrangements for British Leyland—the proposals for which the Conservative Party voted against last night.

    As regards the Chrysler situation, I saw reports, and hon. Members saw reports—and I have now seen a further report—that there were some people—I am referring not to any individual shop steward but to some people of standing in the city's affairs—who looked forward to a certain situation being created, or who said that if the strike led to such a situation the Government would proceed to nationalise. I have made it clear that not one penny of Government money will go in to sustain a situation created by an unofficial strike of that kind.

    Does the Prime Minister agree that if the NEB is to be more than a receptacle for "lame ducks" it needs to work within a carefully worked out industrial strategy, and a strategy that concentrates resources on those sectors which are most essential to our national survival? Does he accept that in this respect the NEDC, with all the planning work that it has done with representatives of both sides of industry, can play an important rôle?

    Yes: I agree with what my hon. Friend said about the NEDC. As regards the NEB, the guidelines within which it should work, and its operations, these matters were set out in the White Paper which was published last year. I have made it clear that when the Bill emerges from Committee we shall go through it again and decide what, if any, amendments are needed on Report. However, it has an essential part to play in the regeneration of British industry. If I catch your eye this afternoon, Mr. Speaker—I am not canvassing you in any way—I hope to be able to deal with some of the points that have been made by my hon. Friend.

    Assuming that the Prime Minister was not speaking in a personal capacity on Tuesday, will he confirm that it is the Government's joint view that it is desirable in principle for trade union elections to be conducted by postal ballots?

    I have made clear that we have had no effective discussions on this matter since the events in the AUEW over the weekend. I understand that action is being taken within the union. It would be inappropriate for me to comment on the matter now. I have expressed my view and I am sure that it is the view of many hon. Members in all parts of the House.

    In view of the infancy of democratic practices in the Conservative Party, when the next election takes place for the replacement of the present Leader of the Opposition do the Government plan to make funds available for the conduct of a postal ballot in the Tory Party?

    There is no ministerial responsibility now or in the future for anything affecting the leadership of the Conservative Party. My hon. Friend the Member for Rossendale (Mr. Noble) seems to be a little out of date in his references to the infancy of democracy in the Conservative Party. I thought that last night, at a late hour, when I was in the House, there were signs of incipient democracy breaking out in the party.

    In view of the overriding importance at present of containing public spending, will the Prime Minister give to the next meeting of the NEDC, and today to the House, a firm assurance that the borrowing requirement for this year is still—and will continue to be throughout the year—not more than £9,000 million, as estimated by the Chancellor of the Exchequer, and not £10,000 million, which has been said to involve unacceptable risks?

    These matters are not usually debated at the NEDC in respect of the Budget. I have no information that it is likely to come up at the meeting which I shall be chairing. It will undoubtedly come up this afternoon in the House in the debate on the economy, and I have no doubt that we shall all be dealing with the broad questions of the economic strategy.

    Before the Prime Minister gets too enthusiastic about postal ballots, will he cast his mind back to the days of the old ETU and to what happened when Communists gained control through irregularities in postal voting at a time when the Right Wing had control of the engineers through the ballot box? If it is acceptable for every hon. Member of this House to be voted in by personal visits to the ballot box, why should not the trade unions operate the same system?

    I am sure that my hon. Friend and I are in total agreement that, whatever the system, we are opposed to the scandals which took place in the ETU some years ago, or, indeed, to any other scandals in any form of balloting, whether trade union or not.

    Trade Unions (Ballots)

    I appreciate your ruling earlier, Mr. Speaker, about reports of Standing Committee proceedings. I was seeking to elicit from the Prime Minister some clarification of the undertaking given at Question Time on Tuesday when in reply to a Question by my right hon. Friend the Member for Lowestoft (Mr. Prior) he gave a clear impression that the Government's policy was to introduce postal voting from public funds as soon as possible. I appreciate that we cannot refer to the Standing Committee proceedings. The House is in some difficulty since the Committee proceedings cannot be read by hon. Members because they are not being printed. Therefore, hon. Members will not realise that there was a vote on this matter which—

    Order. The hon. Gentleman has a clear way of making his point. On business questions he can say to the Leader of the House "In view of what happened in Committee upstairs this morning"—without referring to what it was that happened in the Committee "has the Leader of the House a statement to make?" That is the proper way to go about the matter.

    Further to that point of order, Mr. Speaker. I thought I heard the hon. Member for St. Marylebone (Mr. Baker) say that I gave an undertaking on Tuesday that there would be Government funds for postal ballots. I did not say that. I am sure what I said is in the recollection of the House, and it is recorded in the proceedings. I said that I had no report of the proceedings before the Standing Committee on Tuesday morning but that the Government would consider the position. That was the position then and is the position now. I understand that this was repeated not very far from here not many hours ago.

    Business Of The House

    Will the Leader of the House please state the business for the first week after the Adjournment?

    The Lord President of the Council and Leader of the House of Commons
    (Mr. Edward Short)

    The business for the week after the adjournment will be as follows:

    MONDAY 9TH JUNE—Second Reading of the Statutory Corporations (Financial Provisions) Bill.

    Motion to appoint a Standing Committee on Regional Affairs.

    The House may wish to be reminded that this will be the historic day when the proceedings of the House are broadcast for the first time.

    TUESDAY 10TH JUNE—Further progress in Committee on the Finance (No. 2) Bill.

    WEDNESDAY 11TH JUNE—Remaining stages of the Social Security Pensions Bill.

    Motion on the EEC Document on Economic Policy Guidelines (R/731/75).

    THURSDAY 12TH JUNE—Motions on Reports of the Select Committees on Members' Interests (Declaration);

    and on the right hon. Member for Walsall, North (Mr. Stonehouse).

    FRIDAY 13TH JUNE—Second Reading of the Hare Coursing Bill.

    The Leader of the House has already undertaken to find time to discuss the report of the Committee on the preparation of legislation. Can he give some idea when it will be debated?

    I am afraid that I cannot name any date in the near future, but I shall bear in mind what the right hon. Lady said. It is a very important report and we shall debate it before the Summer Recess.

    Further to my right hon. Friend's announcement that there will be a debate on the position of the right hon. Member for Walsall, North (Mr. Stonehouse), is he aware that the Select Committee concerned received yesterday a further letter from the right hon. Gentleman, which does not appear to alter the situation at all and which would not cause the Committee to vary its conclusions set out in its second report? Nevertheless, I am sure, the Committee, in the interest of fairness to the right hon. Member for Walsall. North, will want that letter and any subsequent letter which we may receive to be before the House before the debate takes place on the Thursday when we return—and I certainly propose to take action to see that they will be available.

    If there is any change in the situation I shall reconsider that day's business. I have no doubt that if there is a change the Select Committee will reconsider the matter, too.

    Is the right hon. Gentleman aware of how the country will respond to the Government's magnificent lead in our times of difficulty in introducing the Hare Coursing Bill? Why are we still in the process, at this point in the Session, of starting major Bills? Will he give the House some idea whether the Session will end at the normal time, or whether certain Bills will be abandoned, or whether the Session will be extended?

    I answered this question last week. I make no apology for the introduction of the Hare Coursing Bill. Perhaps the right hon. Gentleman will look at the whole of the business for next week. I think it is a very fine thing that for a few hours in one Session the House can pay some attention to the subject of animal welfare.

    On the right hon. Gentleman's second point relating to major Bills and the length of the Session, as I said last week—I do not know whether the right hon. Gentleman was here—it is too early to say yet, but I expect that the Session will end at the normal time, though there will be a spillover in the autumn.

    Will my right hon. Friend confirm that it will be in order to debate the affairs of the British Steel Corporation on the Statutory Corporations (Financial Provisions) Bill? If not, can he say when we shall have a debate on the steel industry?

    It is a matter for Mr. Speaker, but I imagine that discussion of the affairs of BSC will be in order on that day. I listed that matter following a promise which I gave last week. I said that I would table it as early as possible in the first week after the Whitsun Recess.

    According to the Ministry of Transport's figures, 500 people have died unnecessarily because in the past six months we have not been able to find the time to take further the provisions of the legislation concerning safety belts. When are we to be given further time to discuss that measure?

    We have started the Second Reading of that legislation, and I hope to find time very shortly to complete the Second Reading of that Bill. As the hon. Gentleman knows, the compulsory wearing of seat belts begins in the Benelux countries on 1st June.

    Is my right hon. Friend aware of the strong desire among Labour Members to bring about the ending of the system of agricultural tied cottages? What are the Government's intentions in that respect?

    It is the Government's intention to introduce legislation on this very important matter in the next Session.

    Is it not amazing that during the whole of the week after the result of the great referendum is known we are not to debate the consequences of that referendum?

    We have debated the referendum a great deal. As I pointed out last week, we have spent one-tenth of our time this Session on European matters. As I promised, my right hon. Friend the Prime Minister will make a statement on the referendum on the Monday on which we resume.

    Is the Leader of the House aware that there will be great disappointment among Scottish Members that he has not yet found time for the long-promised debate on the Scottish economy, as it is almost 18 months since it was last debated in the House'? Can he give an undertaking about when it will be debated?

    I cannot give an undertaking about when it will be debated, but I can give an undertaking that it will be some time this Session. [Hon. MEMBERS "It will be debated today."] The Scottish Members are in a very fortunate position compared with the English. They have four days when they can have general debates on Scotland in the Scottish Grand Committee.

    When shall we have the Second Reading of the Bill to take the aircraft and shipbuilding industries into public ownership?

    Will the Leader of the House consider giving time after the recess for a debate on the British footwear industry, which is now in a critical position, especially as there has been total inaction by the Government, despite the soothing words of the Under-Secretary of State for Industry in an Adjournment debate many weeks ago?

    There has not been inaction on the part of the Government. If the hon. Gentleman will sit in for the speech of my right hon. Friend the Prime Minister, if my right hon. Friend catches the eye of the Chair, he will find that my right hon. Friend has something to say about it, and he will also say something about it tomorrow.

    Will my right hon. Friend arrange for a debate at an early date, as promised, on the scandalous state of the law on liquidations, in particular the law that allows a director to liquidate a company one day and start another in exactly the same line of business the next?

    That is a very important point—the sort of point that should be considered in the context of company law generally. The Government will be introducing proposals on company law eventually.

    Will the Government find time for the Industrial Democracy Bill of the hon. Member for Chester-le-Street (Mr. Radice) to go through all its stages, or introduce a Bill of their own, or do they intend just to leave us in a state of suspended animation on this matter?

    There is another Private Members' Bill day to come. Speaking from memory, I think it is on 11th July. The hon. Gentleman will have an opportunity on that day.

    Following the comments of the right hon. Member for Orkney and Shetland (Mr. Grimond) and his oblique inference concerning the hugger-mugger of legislation in this House, will my right hon. Friend consider liquidating the ancient convention of the massacre of the innocents in October? Is it not foolish to get past 50 per cent. or even 75 per cent. of the stages of a Bill and then suddenly have it all fall down and have to start anew? Will my right hon. Friend consider that matter when he is thinking of his timetable?

    It is an interesting suggestion, but the great merit of that device is that it is a massacre of the guilty as well as the innocent.

    This afternoon the Prime Minister referred to the regeneration of British industry. When will the Government make a statement on the action they intend to take to assist the textile industry before there is no textile industry to regenerate?

    My reply to the hon. Member for Wellingborough (Mr. Fry), who asked me about footwear, applies here also. In his speech my right hon. Friend the Prime Minister will be referring to footwear and textiles. He will also be making a statement on these matters tomorrow.

    Is my right hon. Friend aware that many hon. Members and many people in the country are indebted to the Government for fulfilling their pledge to give Government time to debate the Bill to ban the abominable practice of have coursing?

    Is it a true indication of the Government's priorities that, having published their White Paper "Food from Our Own Resources", they refuse to give time for its implications for Britain's largest industry to be debated, and yet can find a day to chase hares?

    I have never said that we refuse to give time. I have not yet been able to find time. I repeat what I have said many times—that the Opposition still have 12 days left themselves to choose subjects for debate. They are supposed to be the party representing agricultural interests At any rate, they tell us that they are. Why do they not have a debate on agriculture?

    When does my right hon. Friend expect to be able to report to the House the findings of the Boyle Commit-teen on Members' salaries?

    May I ask the Leader of the House to observe the dignity and authority of Parliament? We are having a fortnight's recess. On the Friday after we return we are to debate a petty Bill which has not made progress as a Private Member's Bill over many years. Are we right, at this critical time, to take five hours of Government time to consider it?

    It is always right to spend time trying to get rid of cruelty, whether to human beings or to animals, and that is what we are doing.

    In view of the private opinion polls showing a swelling "No vote in the referendum, will my right hon. Friend tell us what arrangements he has made for withdrawal from the EEC? In the outlandish and unlikely event of a" Yes" vote, what valedictory rites has he in hand for this Parliament, which will be the last as we know it?

    If the result is "Yes", no parliamentary action is required. If it is "No", the necessary legislation will be placed before Parliament in due course.

    I hope that the right hon. Gentleman will give further thought to the point made by my hon. and learned Friend the Member for Darwen (Mr. Fletcher-Cooke). To have just a statement by the Prime Minister on this historic occasion might be considered rather anti-climactic.

    I remind the Leader of the House of the point made by my hon. Friend the Member for Bedfordshire, South (Mr. Madel) concerning the Industrial Democracy Bill. We seem to have got into a state of some confusion here, with Ministers doubtfully welcoming this strange proposal. I hope that the right hon. Gentleman will make the Government's position clear before long.

    In order to tidy up the summer programme, which is congested with a lengthening queue of Second Readings, as the right hon. Member for Orkney and Shetland (Mr. Grimond) pointed out, will the right hon. Gentleman say when we shall have a summer Budget?

    The Industrial Democracy Bill is a Private Member's Bill. There is one day left in early July for Private Members' business, and my hon. Friend the Member for Chester-le-Street (Mr. Radice) must take his chance on that day.

    I replied to the hon. and learned Member for Darwen (Mr. Fletcher-Cooke), who asked for a statement. I promised a statement by my right hon. Friend the Prime Minister. I cannot do more than that, can I?

    Social Security Benefits

    With permission, Mr. Speaker, I should like to make a statement about increases in social security benefits.

    My right hon. Friend the Chancellor of the Exchequer told the House in November 1974 that we were planning to make a second uprating in December this year to follow the one which took place in the week beginning 7th April. As the Chancellor made clear, the short intervals between upratings are a recognition of the exceptionally high rate of inflation we are experiencing, but as inflation is brought under control we intend to move back to an annual cycle of upratings. So far as this year is concerned, I am glad to inform the House that we have decided to bring forward the date for this second uprating to the week beginning 17th November 1975. But there will not be a Christmas bonus. A bonus is bound to be somewhat arbitrary in coverage and excludes a number of people who benefit from a general uprating.

    The standard single rate of retirement pension and of invalidity pension, as well as a widow's pension, will be increased by £1·70 from £11·60 to £13·30. For a married couple the increase will be £2·70 from £18·50 to £21·20. These increases are in line with the movement in earnings of nearly 15 per cent. that has taken place in the period from August 1974 to March 1975, which is the relevant period for calculating this uprating. Younger widows and pensioners entitled to pensions at modified rates will get proportionate increases, and there will be additional increases for children.

    Short-term benefits for sickness and unemployment will be increased in line with the movement in prices of just over 13 per cent. in the period August 1974 to March 1975. The rate for a single person will go up by £1·30 to £11·10, and for a married couple the increase will be £2·10 to £18. Maternity allowance and injury benefit will go up by the same amounts.

    War and industrial injuries pensions will go up in line with long-term benefits. As regards supplementary benefit, the increases in the main scale rates will be the same as those in the related national insurance benefits, and they will come into force at the same time. The social security benefit increases will not generally reduce rent and rate rebates and rent allowances, since my right hon. Friend the Secretary of State for the Environment proposes, after consulting his advisory committee, to make corresponding increases in the needs allowances for those schemes.

    To coincide with the uprating, the Supplementary Benefits Commission will be making substantial increases in the discretionary additions for extra heating to take account of increased fuel costs. These increases will be over and above the increases in the scale rates but will operate from the same date. The detailed increases are from 40p to 55p, from 80p to £1·10 and from £1·20 to £1·65 a week. The discretionary additions for special dietary needs will also be increased from 50p to 60p and from £1·12 to £1·35.

    The changes in supplementary benefit disregards, which are already enacted, will be implemented from the week beginning 17th November, together with all the other improvements which will then become operative.

    The week beginning 17th November will also be the date when our new noncontributory invalidity pension will start to be paid to persons other than disabled housewives. The rate at which this new benefit will be introduced will be £7·90 instead of £6·90 as originally envisaged.

    The House will realise that, together with the increases in Family Income Supplement which I have already announced will take place in July, this represents a very heavy programme of work for the local offices of my Department. The programme can only be carried through in the time available as a combined exercise with a single operative date. To attempt to advance any part of the programme would cause duplication of work and inevitable delay in the payment of increases and benefits to large numbers of claimants. I have discussed the programme with the staff associations involved and I am confident that it will be completed in time.

    My right hon. Friend the Chancellor of the Exchequer took account of this uprating of benefits in the Budget which he presented last month. The cost of the increases in benefits in the financial year 1975–76 will be about £395 million.

    The increase in expenditure needs to be set in the context of an automatically rising income to the National Insurance Fund under the new earnings-related system of contributions. Of the full year cost of the uprating, which is £1,060 million, £910 million will fall on the fund. This latter cost will be taken into account, with other relevant factors, in the review of contributions which, in accordance with the Act, I shall be making during the summer. Following this review, the Government will propose whatever changes for 1976–77 are needed to ensure that the fund is soundly financed, including, if necessary, increases in the main rates of contributions. The changes will be effected by an order needing affirmative resolution after the Summer Recess, and there will be a report by the Government Actuary.

    For the convenience of the House I am circulating details of the new rates of benefits in the Official Report. These, with copies of my statement, are available in the Vote Office. Immediately after the Whitsun Recess I shall be laying a draft uprating order, under Section 124 of the Social Security Act, for affirmative resolution. The order will be accompanied by a separate Government Actuary's report.

    I am sure that the whole House will welcome these further measures to mitigate the effects of inflation on pensioners and other beneficiaries.

    The whole House will recognise that the last statement was made in November and that the need for these reviews is becoming more frequent.

    May I ask the Secretary of State a number of short questions. First, why does the right hon. Lady still resist six-monthly reviews of pensions, for which we have pressed? Is it really only because the proposal comes from the Opposition side? Will she give the assurance that if inflation continues at its present rate she will reconsider her policy for at least 1976?

    Secondly, so that we can fully judge the effect of the abolition of the Christmas benefit, which, as the right hon. Lady realises, was introduced by a Conservative Government—can she say how much public expenditure is involved here, as she will be conscious of the very grave disappointment that her announcement will have caused?

    Thirdly, is the right hon. Lady aware that the whole House is agreed that the old level of disregards for supplementary benefit purposes is totally inadequate, and, as legislation has been passed some months ago, could she not see her way to making an earlier change of policy here?

    Fourthly, will the right hon. Lady confirm that she is continuing to insist that disabled housewives will receive the new non-contributory invalidity pension later than other disabled? Is this not defying what has been the clearly expressed wish of this House, and is she aware of the great anger that that is causing?

    Lastly, is it not a fact that because of the present rate of inflation the real value of pensions and national insurance benefits will have dropped dramatically by November? Is it also not a fact that if the Government fail to get inflation under control not even these increases will suffice for very many people in Britain today?

    Considering the fact that the uprating we introduced only last month put pensioners and other beneficiaries, in real terms, in a considerably more favourable position than at the time of the October 1973 uprating of our predecessors, I find this conversion to more generous treatment slightly belated on the part of the Opposition spokesman.

    With regard to six-monthly upratings, we have said that we are going to increase pensions and benefits as frequently as is necessary to protect the pensioners from the effects of inflation. This is what we have done. This will be an increase only seven months after the last one, which has, as I have said already, put the pensioners and other beneficiaries in a greatly improved position.

    A single person, for instance, will be, in real terms, nearly 12 per cent. better off following the April uprating than he was under the last Conservative Government's uprating, and a married couple nearly 11 per cent. better off in real terms. There is, therefore, a margin here.

    The Government's policy is as I have outlined. It is our intention, as inflation is brought under control, to revert to annual upratings, but in the meantime we have once again made the improvements as and when they became necessary. Once again we are increasing supplementary benefit in full line with the increase in the basic pensions, and, as I have announced, there will be substantial increases in the heating and dietary discretionary allowances and continuation of the help over rent and rates, which I believe will insulate the beneficiaries against the present difficulties.

    As for disabled housewives, at the time we debated this matter I made it clear, as did my right hon. Friend the Minister of State, that it was not administratively possible to include disabled housewives at this stage.

    Will my right hon. Friend accept that many Government supporters who have protested against the anomalies in the £10 Christmas bonus will greatly regret its passing? Does she not feel that it would be better to remove the anomalies than to remove the bonus?

    I agree with my hon. and learned Friend that there were anomalies. Although we brought a million more people under the Christmas bonus last year, that still left many deserving groups excluded and a grave sense of resentment in many quarters. Yet the cost of that bonus was more than £90 million. I can only assure my hon. and learned Friend that it proved administratively impracticable under both Governments to extend the Christmas bonus to those on supplementary allowances who might be considered to be the most hard hit. It was totally out of the question, and both Governments recognised that. We think that it is better to spend what resources the country has on a general increase through this general uprating.

    Is it not significant that the one benefit which lags behind in the Government's review is family income supplement? As this remains the only, albeit ineffective, weapon to deal with the problem of family poverty, does not the right hon. Lady agree that, until such time as the Government are able to introduce their own scheme, there should not be a situation where FIS increases are announced about six months after the other general upratings?

    On the contrary. The hon. Gentleman has it wrong. Obviously he missed my announcement earlier, which I repeated today, that family income supplement will be increased, in advance of the November uprating, in July of this year.

    Is the right hon. Lady aware that many people will consider that she is to be commended for proposing to eliminate the unsatisfactory method of a Christmas bonus, which caused in many cases great and in some cases justified irritation and a sense of grievance?

    I am grateful to the right hon. Gentleman. It is true that, if there is a bonus of that kind, arbitrary distinctions have to be drawn between people. They create anomalies, and they create almost more grievances amongst those left out than they do happiness to those who are included.

    Do these increases in the State retirement pension have any relationship to the declared object of the Labour Party and this Government of raising pensions in real terms in relation to national average earnings? I assure my right hon. Friend that, despite the difficulties of the country and the Government, working people ande the trade union movement as a whole are quite ready to make sacrifices for the 4 million old-age pensioners who are really up against it.

    I agree with my hon. Friend. It has been a very important reform to embody in a statute the obligation on the Secretary of State to uprate in line with average national earnings. As my hon. Friend said, we have kept that promise and we are implementing it. Of course, it is impossible to forecast what national average earnings will be in November. But I can give some idea about how this is beneficial to the pensioners concerned by giving the figures for our first two upratings. In July 1974 and April 1975 the upratings amounted to an increase of 50 per cent. for a period in which price increases were 33½ per cent. and average national earnings increased by nearly 35 per cent. In other words, we kept them even further ahead in real terms.

    Although the Opposition welcome this uprating in social security benefits and the fact that it has come only seven months after the previous one, does the right hon. Lady accept that the advance has occurred only because of the very high increase in inflation? Assuming that this increase

    MAIN INCREASED CONTRIBUTORY AND NON-CONTRIBUTORY BENEFIT RATES

    Proposed Weekly Rate

    Existing Rate

    ££
    Standard rate of invalidity, widow's and Category A retirement* pensions; Category B retirement pension at the higher rate* and widowed mother's allowance13·3011·60
    Increase of invalidity pension and Category A retirement pension for wife or other adult dependant; Category B retirement pension at the lower rate*7·906·90

    * An age addition of 25p is payable to retirement pensioners who are aged 80 or over.

    is allowed for in the borrowing requirement, can she say how long it will be before she has to come to the House with proposals for another uprating? If it should be after only six months, when that occurs will she be able to say that that sum has been allowed for in the borrowing requirement?

    I agree that it is far better to bring inflation under control than to have frequent upratings. Equally, it is right in a period of exceptional inflation to have upratings sufficiently frequently to protect those concerned.

    I remind the hon. Member for Lancaster (Mrs. Kellett-Bowman) that, since coming to office, we shall have increased pensions and long-term benefits by 72 per cent. We believe that that is a very good record.

    Order. We have a very important debate to follow. I am afraid that we must move on.

    Following is the information:

    Details of New Rates of Benefit

    The Government are committed by law to increasing pensions and other long-term benefits in line with the movement in the general level of earnings unless the movement in the general level of prices would be more advantageous to those concerned. The last uprating took into account the movement in earnings up to August 1974. On the basis of the latest available information on the level of earnings, namely the Department of Employment's provisional monthly index of average earnings for all employees for March, the movement of earnings to be taken into account for the next uprating is nearly 15 per cent. Over the same period prices, as measured by the general index of retail prices, rose by just over 13 per cent.

    Thus it will again be to the advantage of pensioners and other long-term beneficiaries for their benefits to be increased by reference to the movement in the general level of earnings, rather than prices.

    The following are therefore the new rates:

    Standard rate of unemployment and sickness benefits:££
    Higher rate11·109·80
    Increase for wife or other adult dependant6·906·10
    Lower rate7·806·90
    Widow's allowance (first 26 weeks of widowhood)18·6016·20
    Maternity allowance11·109·80
    Invalidity allowance payable with invalidity pension, when incapacity began before age:
    352·802·40
    451·701·50
    60 for men or 55 for women0·850·75
    Attendance allowance:
    Higher rate10·609·20
    Lower rate7·106·20
    Retirement pension for persons over pensionable age on 5th July 1948 and for persons over 80*:
    Higher rate7·906·90
    Lower rate4·904·30
    Non-contributory invalidity pension7·906·90
    Invalid care allowance7·906·90
    Increase of non-contributory invalidity pension and invalid care allowance for wife or other adult dependent4·904·30
    Guardian's allowance6·505·65
    Child's special allowance; increases for children of widows, invalidity, non-contributory invalidity and retirement pensioners, and invalid care allowance beneficiaries:
    First child6·505·65
    Any other child†5·004·15
    Increases for children of all other beneficiaries:
    First Child3·503·10
    Any other child†2·001·60

    * Excluding the 25p age addition.

    †Family allowances bring the total payments up to the amount payable for the first child.

    MAIN INCREASED INDUSTRIAL INJURIES BENEFIT RATES
    Injury benefit*13·8512·55
    Disablement benefit (100 per cent. assessment)*21·8019·00
    Unemployability supplement‡13·3011·60
    Special hardship allowance (maximum)8·727·60
    Constant attendance allowance (normal maximum)8·707·60
    Exceptionally severe disablement allowance8·707·60
    Industrial death benefit:
    Widow's pensions during first 26 weeks of widowhood18·6016·20
    Widow's pension now payable at £12·15 rate13·8512·15
    Widow's pension now payable at £3·48 rate3·993·48

    *The rate for beneficiaries not over the age of 18 will also be increased.

    †Increases for adult dependants and children will be the same as those payable with employment and sickness benefits.
    ‡Invalididty allowances and increases for adult dependants and children will be the same as those payable with invalidity pensions.

    MAIN INCREASED WAR PENSION RATES
    All ranks receive the same increases, officers' rates being expressed in pounds per annum.
    PART I: DISABLEMENT BENEFITS

    Proposed Weekly Rate

    Existing Rate

    ££
    Disablement pension for private at 100 per cent. rate21·8019·00
    Unemployability allowances*:
    Personal allowance14·2012·40
    Increase for wife or other adult dependant7·906·90
    Comforts allowance:
    Higher rate3·703·20
    Lower rate1·851·60
    Allowance for lower standard of occupation (maximum)8·727·60
    Constant attendance allowance:
    Special maximum17·4015·20
    Special intermediate13·0511·40
    Normal maximum8·707·60
    Half and quarter day4·353·80
    Age allowance with assessments of:
    40 and 50 per cent.1·601·40
    60 and 70 per cent.2·402·10
    80 and 90 per cent.3·403·00
    100 per cent.4·804·20
    Exceptionally severe diablement allowance8·707·60
    Severe disablement occupational allowance4·403·80

    Proposed Annual Rate

    Existing Annual Rate

    ££
    Clothing allowance:
    Higher rate32·0029·00
    Lower rate21·0019·00

    *Invalidity allowances and increases for children will be the same as those payable with invalidity pensions.

    PART II: DEATH BENEFITS
    Widow's pension—private's widow:
    Standard rate