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Commons Chamber

Volume 873: debated on Wednesday 8 May 1974

House of Commons

Wednesday, May 8, 1974

The House met at half-past Two o'clock

Prayers

[Mr. SPEAKER in the Chair ]

Oral Answers to Questions

Environment

Rate Support Grant

asked the Secretary of State for the Environment if he will pay an official visit to Cornwall to investigate the effects of his rate support policies.

I have no plans to do so at present. I am well aware of the strength of local feelings on this issue, and my right hon. Friend the Minister for Planning and Local Government has met local authority representatives from Cornwall.

I thank the Secretary of State for that reply and I thank his right hon. Friend for his extremely helpful letter in reply to me today. I realise the difficulty about doing anything to help this year and I welcome the view of the Department and of the right hon. Gentleman that it may be possible to help in 1975–76. Will the Secretary of State turn his attention to the question of rebates? A large part of the rate is made up of sewerage and water rates, which are not eligible for rebate. Help in this financial year would be of enormous assistance to my constituents. Will the Secretary of State help Cornwall in this matter?

The question of rebate is extremely important. With regard to the ordinary rate rebate, 75 per cent. of the hon. Gentleman's constituents are eligible for rate rebate, but this does not apply to water and sewerage rates. I cannot give an undertaking to do something about it this year but the matter will be very much in our minds in our attempts during the next few months or so to bring about a more equitable distribution of the rate support grant next year.

Will the Secretary of State explain—because the point did not come out clearly in the recent debate on the rate support order—why Wales is receiving special treatment while other outlying areas are not? My constituents would be interested to know this.

We took the view that much of Wales had been affected far more seriously than other areas by the application of changes in local government and by reorganisation of finance and water and sewerage services. Lest there is a misunderstanding, I should point out that, even with the uniform domestic relief for Wales, some districts in Wales will lose out as a result of our decision.

I do not wish to misquote the right hon. Gentleman but, without being specific about his actual words, has he not given the British public the impression that what he is proposing is to bring in a measure of social justice? On what basis does the right hon. Gentleman assume that people in small towns and in the countryside, such as in Cornwall, are, on the whole, much richer than those in the large urban areas?

I do not assume anything of the sort. I accept at once that average earnings in Cornwall are lower than the national average, but it should be pointed out that the average rate payment in Cornwall is also much lower than the national average. These two factors have to be balanced.

asked the Secretary of State for the Environment if he will make a statement on the progress of his study of possible changes in the rate support systems.

My officials have begun discussions with representatives of the local authority associations. My right hon. Friend the Minister for Planning and Local Government and I hope to meet the associations later in the month. We shall also be discussing the issues with a representative sample of local authorities.

Is my right hon. Friend aware that the people of Stoke-on-Trent have suffered badly from the recent changes in the rate support grant and would like special consideration from him to alleviate some of the great hardship involved? Is he further aware that the present rating system is full of anomalies and injustices? Can he assure us that there will be a thorough review of the whole system to ensure that those anomalies and injustices are removed?

I am well aware of what has happened to my hon. Friend's constituents and how strongly they feel about it. Indeed, he led a deputation from Stoke-on-Trent to see the Under-Secretary of State. I shall do the best I can over the rate support grant to produce next year a formula which will certainly not be universally popular—no formula can be—but will at least be universally held to be the best that we can produce in this imperfect world.

Does the Secretary of State realise the great anger that exists in many parts of the country—certainly in Hertfordshire—at the way in which he has gerrymandered the rate support grant? Is he aware that this is held to be totally unfair and that it is unacceptable to have constantly rising rates, which would have been avoided had he not taken the action he did in March?

I am well aware of the anger that is felt in many parts of the country, including Grimsby, I may say. If I had been out to gerrymander, I would appear to have done it ineffectively so far as my own interests are concerned. I do not think that the hon. Member seriously means his accusation about gerrymandering. On the general point, I must make it clear that if we take the country as a whole we see that I redistributed only about 7½ per cent. of the total rate support grant. The total national increase in rates this year was not the responsibility of this Government; we inherited it from the previous Government.

I accept what my right hon. Friend has said—I hope that he will repeat it—that the vast bulk of rate increases is directly attributable to the Tory policies that the last Government pursued, but would it be possible to introduce for this year a special Supplementary Estimate on the domestic element in the rate support grant? I assure my right hon. Friend that a substantial number of people, not in my constituency but in many others, are finding that the present rates impose an intolerable burden.

Certainly, in my lifetime, I have never known such universal anger and resentment at the level of rates. This is in a sense new social phenomenon. Rates have come to the top of many people's priorities. However, my hon. Friend was born in Grimsby and is therefore a man of acute perception and common sense. As such, he will not expect me to promise anything for this year.

Is the right hon. Gentleman aware that there is tremendous anger in Derbyshire and elsewhere about this matter, and that it is purely because of his actions that that anger has been increased to the extent that it has. [HON. MEMBERS: "No."] Yes, it has. My hon. Friend's accusation of gerrymandering is right. Will the right hon. Gentleman take immediate action to put this matter right?

No, Sir. I must make it clear once again that the total national increase in the rate burden this year, which has been so bitterly resented by so many of our citizens, is the responsibility of the Tory Government.

Housing Associations

asked the Secretary of State for the Environment what has been the financial effect on the voluntary housing movement of the rent freeze.

Some housing associations report that they are finding it difficult to meet the financial effects of the rents freeze. Provision is made in the Housing Bill for some adjustment to subsidies payable to housing associations. This will help associations, but we are considering whether further measures may be necessary.

Does the Under-Secretary accept that the aid promised in the Housing Bill is totally insufficient, and will he, as a matter of urgency, consider specifically the possibility of allowing housing associations to pass on extra service charges, such as higher fuel costs, which local authorities are permitted to do?

I do not agree that the aid which the hon. Gentleman mentioned is totally insufficient; at worst it is comparatively insufficient. I accept that there may be problems. I gave the assurance in the debate on Monday—and I give it again today—that we are seriously watching the situation to see what else should be done. The question of service charges is under review.

Does not the hon. Gentleman realise that the rent freeze is a fiddle and that it is doing everything possible to hurt those in council house estates who pay a normal rent and to relieve those who would be able to pay an economic rent, and that, indeed, the whole thing is being paid by other people in the country and not by council house tenants?

A bigger fiddle was to allow rents to rise while controlling wages. But if the Conservative Party does not like our rent freeze, let it put down a motion on it and vote on it.

Is my hon. Friend aware that, in contradistinction to what the hon. Member for Hampstead (Mr. Finsberg) said, the National Federation of Housing Associations has widely welcomed the Housing Bill and hopes that it will go through the House as fast as possible?

We have had many consultations with that organisation. My hon. Friend is right to draw the conclusion that he does.

What is the estimated amount of these additional subsidies for housing associations that the Minister has just mentioned? Will this come out of the £100 million or so which is being provided for housing associations under the Housing Bill for the improvement of old houses?

Local Authority Staffs (Salaries)

asked the Secretary of State for the Environment what were the approximate numbers of posts in local authorities in England and Wales with salaries in the band between £4,000 and £5,000 and in each higher band of £1,000 ( a ) prior to reorganisation on 1st April 1974, and ( b ) subsequent to such reorganisation; and what is the difference in total costs.

I regret that this information is not available.

Is the Minister aware that there is a general feeling in the country that many local authorities have not shown sufficient restraint in arriving at their senior staffing levels following reorganisation, and that many ratepayers, at a time of unprecedented increases in their rates, feel that this information should be made available? Is it not right that it can readily be made available and must be made available?

I warned the right hon. Member for Crosby (Mr. Page) during the passage of the previous administration's Local Government Bill that there was widespread disquiet about what was happening as a result of local government reorganisation. I am still very concerned. As soon as a full report from the LACSAB survey has been received, my right hon. Friend will consider what further action is necessary. The survey should be received in about two or three weeks.

Speaking as the chairman of a district planning committee and a member of a county planning committee, may I say that a large number of people are worried not only about the salaries of officials but about the growing numbers of people employed? Will the Minister, in a less ambitious project, make a random sample of, say, planning establishments in metropolitan counties and non-metropolitan counties and compare them with the people who were engaged in planning on 1st April 1974? Does he not agree that we may be rapidly reaching a stage when there are more cowboys than Indians?

My hon. Friend may be talking about establishments. There is, of course, a widespread shortage of actual planners, but in overall numbers, it would seem from the preliminary survey that there was an approximate increase of 5 per cent. in the number of staff employed as between the old authorities and the new.

Improvement Grants

asked the Secretary of State for the Environment whether he will examine the desirability of extending the qualifying date for the higher rate of home improvement grant in respect of those dwellings, the future of which is awaiting his decision on an application for compulsory purchase.

asked the Secretary of State for the Environment if he has yet made a decision with regard to extending the date beyond which the full improvement grant is payable.

I would refer the hon. Member and my hon. Friend to the answer given to my hon. Friend the Member for Accrington (Mr. Davidson) on 30th April. I regret that no concession is possible in cases where, for whatever reason, the submission or consideration of applications for preferential rates of grant has been delayed.—[Vol. 872, c. 440–1]

Is the hon. Gentleman aware that in my constituency, on at least two orders, replies have been delayed for nine and 10 months respectively, and that the people who are suffering from the delay are now being asked to bear the additional burden of losing the additional support that they would have received on the improvement grant?

In welcoming the hon. Member as a fellow representative of Manchester, I would point out that all but two of those months fell in the period of the previous administration, who were also responsible for the limit on the 75 per cent. grant. Unlike this administration, who have made a concession, the previous Government gave no sign whatever of making any concessions.

Is my hon. Friend aware that his reply to me is welcome because it will remove the anxiety of countless householders who have been callously mucked and messed about for month after month by builders? In view of the high cost of building, however, and the delays by builders, will he examine the whole system of improvement grants to see whether there is some way by which small householders can really benefit? After all, they were the people whom the system was intended to benefit in the first place.

I accept what my hon. Friend says, especially about the way in which people have been mucked about by builders. At the same time, I draw his attention to the fact that we are trying to do something—not totally satisfactory by any means—in the Housing Bill which is before the House at present. But these are matters to which we shall no doubt have to return.

Motorways (Service Stations)

asked the Secretary of State for the Environment what criteria he uses in the selection of sites for motorway service stations.

Sites are sought for development initially with the motorway development at roughly 25-mile intervals and are normally 30–35 acres in extent. Sites are also earmarked where appropriate roughly half way between these for possible later development if and when traffic builds up to demand additional facilities. The selection is made in consultation with the local planning authority concerned and account is taken of traffic, engineering, environmental and agricultural considerations.

I am grateful for those details. However, may I put it to the Minister that it is time that his Department thought of something less elaborate in the service station/restaurant complex every time a filling station is required on a motorway? May I commend to him the European example of using petrol-only substations at intervals of less than 50 miles?

We are prepared to consider any suggestions in this context, but successive Governments have accepted that it is desired by the travelling public to have available refreshment facilities as well as petrol, breakdown and other facilities. The survey commissioned by the previous Government and recently published rather suggested that there was a public demand for the complexes that we now have.

In the choice of motorway service station sites, as, for example, that proposed at Hatfield, in my constituency, is any importance attached to local public opinion?

I am not sure to what extent specific attempts to meet local public opinion are made, but certainly the local authorities and the detailed arrangements have to have planning permission from the local planning authority in the normal way.

In view of the appalling state of motorway service stations, will the Minister consider investigating the operations of Jacques Borel, on the French autoroutes, which serve qualitative and very inexpensive food? At the same time, will the Minister reconsider licensing the motorway catering establishments? Will he also consider the desirability of unlicensed motorway restaurants, in view of the fact that one can now drive on roads other than motorways at the same speed as one does on motorways?

On the question of licensing, new legislation would be required. My assessment of public opinion is that the public would not take kindly to licensing specifically motorway restaurants. The hon. Member suggested, perhaps, that I should make a personal tour of the French autoroutes. If he could arrange for my Chief Whip to give me permission to be away, I could see many advantages in that course. But we are constantly surveying the facilities that are available and, as I have said, the survey of public opinion on this matter does not suggest that the motorway service stations are in the appalling condition that the hon. Member suggests.

Development Land

asked the Secretary of State for the Environment what is meant by the phrase "bringing land required for development into public possession", used in the Gracious Speech when referring to the acquisition of land required for development.

I have nothing to add to the reply given on 3rd April to the hon. Member for Roxburgh, Selkirk and Peebles (Mr. Steel).—[Vol. 871, c. 353.]

Will the right hon. Gentleman say whether compensation for land acquired will be on the basis of existing use and at the level of market value? If there is——

a question of land being taken into public possession and that is to be done on the basis of taking it over on an unknown date for an unknown amount, that would amount to expropriation.

The Labour Party when in opposition was committed to the principle of current or existing use value, and so are the Labour Government when in office. On the other point that the hon. Gentleman mentioned, he will have to wait in patience for a little longer before we can announce details.

Does my right hon. Friend accept that his assurance that such land will be paid for at present use value, for example, as waste land, farmland or disused dockland—or slag heaps—will be enormously welcomed throughout our movement, because otherwise it would be paid for at the exorbitant price that it obtains once planning permission is given? Sometimes that price is 100 times greater. As my right hon. Friend has just indicated, this is an essential part of the Labour Party's plans.

My hon. Friend will know that I was heavily implicated, as he was, in the preparation of those plans, and that I am also very committed personally on these matters by an article, which undoubtedly he will have read, in Socialist Commentary only two months ago.

Is the right hon. Gentleman aware that lack of detail on his proposals is causing great anxiety? [ Interruption. ] Uncertainty is bad for any market. Will he say whether he intends to introduce a White Paper before any legislative proposals, and, if so, when?

Regarding uncertainty, all of us who are interested in housing are concerned with what is happening in the land market. But there is no indication that a shortage of land with planning permission is at present a major inhibiting factor on the house building programme, so we are not dealing with a matter of desperate urgency. I should prefer not to commit myself on a date for a White Paper, or for legislation, but long before the end of the year some detailed proposals will be put to the House.

Rent Freeze (Landlords' Costs)

asked the Secretary of State for the Environment what he estimates to have been the effect of the Counter-Inflation (Private Sector Residential Rents) Order on small private landlords following the increased costs that have occurred since the order was made.

asked the Secretary of State for the Environment if he will take action to allow private landlords to recover the increased costs which they will incur during the rent freeze in respect of providing hot water.

asked the Secretary of State for the Environment if he will take steps to allow private landlords to recover the increased costs which they will incur during the rent freeze in respect of providing central heating.

I am currently examining the effects of the Counter-Inflation (Private Sector Residential Rents) Order.

Will the hon. Gentleman ask his right hon. Friend to look with great urgency at what is actually happening, particularly at the amount of genuine hardship that is being experienced by those who are in business in a small way, often designed to supplement their income in retirement? Will he end this arbitrary rent freeze as quickly as possible? In particular, in the short term, will he at least enable landlords to charge increases where, for example, heating costs have risen quite disproportionately?

We are determined to end the rent freeze as soon as possible— as soon as we are ready to bring in our repeal of the Housing Finance Act, to which we are committed. I assure the right hon. Gentleman that we are well aware of the problem of service charges. I can give him no assurance beyond that.

Is my hon. Friend aware that rent registrations and negotiations for rents to go from control into registration are still going on in the private sector? Does he agree that this means that at the end of the three-year period a landlord will be able to charge the increased rent which is negotiated now? In other words, the rent freeze will have gone for those tenants and they will have only two and a half years of regulation instead of three years.

It is a pernicious system, which was contrived by the Conservative Party when it hatched the deplorable Act which we are now considering repealing, and the repeal of which we shall very speedily bring before the House. We greatly regret the anomalies to which my hon. Friend has referred. In so far as we can put matters right, we shall.

Will the hon. Gentleman repeat his pledge, so that we may get it quite clear? He said that the rent freeze would be ended on the introduction of his Government's Bill to repeal the Housing Finance Act, and not on its passage. Second, for how long does the hon. Gentleman expect the private landlord to pay out of his own pocket the extra costs of, for example, hot water and other services which the landlord may not at present recover from his tenants—especially as the Chancellor has put up the cost of electricity by 30 per cent?

Many of my constituents who are the tenants of private landlords have no hot water supply. Therefore, that problem does not arise in their case. With regard to the first question, the hon. Gentleman misheard what I said. I said that we are anxious to bring the freeze to an end when we can replace it by more permanent legislation. The freeze is at present scheduled to end on 31st December. We shall just have to see how we get on.

Is the Minister aware that his answer is a typical Socialist answer? [HON. MEMBERS: "Hear, hear."] I am delighted with the cheers from Labour Members, but they should wait. Is the Minister aware also that more than 10 years ago I said in the House that as long as the Socialist Party adopted such an attitude there would be no private flats or houses for rent? [HON. MEMBERS: "Declare your personal interest."] I shall. Is the Minister aware also that I have no interest as such, except as a tenant?

Has the Minister's attention been drawn to the letter which has been sent by the Dolphin Square Trust saying that it is impossible to maintain that building in its present state? Is he further aware that that building has more Members of this House as tenants than has any other building in England? Will the hon. Gentleman satisfy himself that Members will not be subsidised by the ratepayers of Westminster?

I should be very grateful if the hon. Gentleman would come to my constituency party meeting on Sunday and confirm that I give typical Socialist answers in the House. At the same time, I can tell the hon. Gentleman that the question of the Dolphin Square Trust is a particularly difficult one, but the last thing I shall do is stand up in the House and say, "Members of Parliament before other citizens".

On a point of order, Mr. Speaker. In view of the totally unsatisfactory nature of the reply, I beg to give notice that I will seek to raise the matter on the Adjournment at the earliest opportunity.

Ports

asked the Secretary of State for the Environment what plans the Government have in relation to nationalising the ports.

It is the Government's intention to bring all commercial ports and cargo handling activities into public ownership and control, and I propose to consult those concerned about the form and scope of the necessary legislation.

Will the Minister give us an example of the way in which our ports would have benefited during the past four years had the 1970 Bill become an Act?

The 1970 Bill would now have had to be reconsidered, because it was confined to only a few ports. If the hon. Gentleman had followed industrial relations in the early years of the last Government he would have had knowledge of the arguments I deployed at great length in the Committee stage of the measure—at which he was also present—where I gave chapter and verse.

Is my right hon. Friend aware that the most efficient port in the country—Southampton—is already nationalised? Would it not be a very good idea if we quickly nationalised all the other ports to bring them up to the standards of Southampton?

My hon. Friend will not expect me to give such unqualified praise to one of our many ports, because that might get me into trouble. There is no doubt that the record of the nationalised ports is good. In a group strategic planning can be done, embracing the whole country, so that we consider what the ports industry needs strategically in a way that, unhappily, the National Ports Council cannot, because it has no executive powers.

Will the right hon. Gentleman address his mind to what possible useful purpose could be achieved by this ridiculous measure? There is adequate control over the ports as things are at present. Will he bear in mind the fact that nationalisation of almost anything constitutes a standing temptation to Ministers—I am not including the right hon. Gentleman—who would not be able to run a whelk stall, constantly to interfere and do a great deal of damage?

I do not know whether the right hon. Gentleman was making something like a public confession—because, despite his well-known and publicised views, he was in charge of some of our nationalised industries. I have no access to his papers, but, reading between a few lines, I would say that he was not loth to interfere, and did interfere.

Land Clearance

asked the Secretary of State for the Environment how many acres of pit bings and other coal mining areas of derelict land have been cleared in each of the last six years in England by local authorities and by private companies and how much public money has been involved; and if he will ascertain and provide comparable figures for Wales and Scotland, respectively.

I regret that records are not kept in this degree of detail, but I will, with permission, circulate in the OFFICIAL REPORT the nearest available information relating to each of the three countries.

Following is the information :

ENGLAND

Total acreage of spoil heaps reclaimed by all agencies

Acreage reclaimed by private agencies (included in (2) ))

(1)

(2)

(3)

1967

561

Not known

1968

506

1969

874

1970

1,345

1971

1,666

1972

2,140

315

These figures are derived from the surveys of derelict land carried out by local planning authorities; they include spoil heaps resulting from all forms of mineral working. No separate figures of public expenditure on clearing spoil heaps are available.

SCOTLAND

The figures given below relate to local authority reclamation schemes involving bings and other dereliction due to mining operations of all types which were approved by the Scottish Development Department. The cost figures exclude the cost of land acquisition.

Acreage of schemes completed

Eligible cost (£000 ))

(1)

(2)

(3)

1968

139

152

1969

247

214

1970

90

121

1971

491

383

1972

325

668

1973

66

111

WALES

The figures given below relate to local authority reclamation schemes involving coal mining activities; the calendar years relate to the date of authorisation not to when the work was completed. The cost figures include the cost of land acquisition.

Acreage of schemes completed

Gross eligible cost(£000 ))

(1)

(2)

(3)

1968

334

727

1969

410

1,183

1970

526

1,083

1971

947

1,684

1972

827

2,013

1973

1,083

2,387

Ml (Service Franchise)

asked the Secretary of State for the Environment whether there is to be any review of the M1 motorway service franchise arrangements.

The terms of service area leases are kept constantly under review in the light of developing needs of the public and representations from the operators.

In the light of developing needs, will the Minister undertake to listen to the representations of those who use the M1 regularly, and heed the view of those who use it that they find that the service facilities on it are far below those that are experienced by those of us who travel on the Continent? Will he for once understand that in terms of oil and petroleum the multi-national companies have a service facility to offer to the public?

I am not sure what the hon. Gentleman meant by the last point. A number of oil companies are responsible for the services on some of our motorways. We are prepared to pursue complaints. I repeat that a public survey—if the hon. Gentleman has not seen it I will send him a copy—commissioned by the last Government from an independent marketing organisation showed that a remarkable percentage of the public was satisfied with the arrangement.

Rate Rebates

asked the Secretary of State for the Environment if, when he is reviewing the finance of local government for 1975–76, he will consider altering the rate rebate scheme to take special account of the problems of single people.

The rate rebate scheme already adjusts the rebate in relation to households of different composition, including those of single persons, but I am always ready to consider suggestions for its improvement. Perhaps the hon. Member will write to me about the particular problems he has in mind.

Is the hon. Gentleman aware of the great difficulties of the single-parent family? Is not this an example of the injustice of the rating system? When are we going to have some rating reform?

In answer to the first part of the question, special help is given to single-parent families by crediting them with the same needs allowances as two-parent families.

Council Houses (Sale)

asked the Secretary of State for the Environment in what circumstances he proposes to allow local authorities to sell council houses.

I would refer the hon. Member to the reply given by my hon. Friend the Minister for Housing and Construction on 3rd April to the hon. Member for Harrow, East (Mr. Dykes) and to paragraph 35 of Circular 70/74, issued to local authorities on 19th April, a copy of which is in the Library.—[Vol. 871, c. 353 .]

First, does the right hon. Gentleman realise that paragraph 35 is massively discouraging to council tenants who wish to purchase a house in urban and metropolitan areas? Secondly, will he make it absolutely clear to authorities that the circular merely shows the views of the Minister and has no power of law, and that they can proceed to sell council property as the law allows irrespective of the circular?

I agree that the circular is massively discouraging to councils that want to deplete the stock of rented housing in areas where there is still an acute shortage of rented housing. On the hon. Gentleman's second point, I certainly have no desire to legislate, because I dislike the idea of constant Government interference with local government freedom, which is one of the major reasons why we shall repeal the Housing Finance Act. The circular gives guidance to local authorities as to what the views of the Government are. It does not wholly rule out the selling of council houses if there is no shortage of rented accommodation. The best thing is for us to see how we go. We shall watch progress very closely.

Is my right hon. Friend aware that cities like Liverpool, with major housing problems, are concerned that the recent circular issued by the Minister seems to indicate that completed houses that are bought may well be sold? My impression, gained from the Minister's statement, was that these houses were intended to meet the problem of the shortage of houses for rent. Will my right hon. Friend make councils aware that this is the reason for the purchase of completed or near-completed houses?

The object of the provision in the circular to which my hon. Friend refers, and the object of providing a substantial sum of money for that purpose, is primarily to increase the stock of rented accomodation—I stress "rented". If we have not made this sufficiently clear we shall certainly do so.

Has the right hon. Gentleman made up his mind about the sale of council houses in the new towns? Does he appreciate that those houses will be sold to people who are already sitting tenants and that therefore no diminution in the stock of houses will result?

Paragraph 35 of the circular, to which I have specifically referred, does not alter the new towns' position.

Channel Tunnel

asked the Secretary of State for the Environment what proposals for implementing his policy of orientating the Channel Tunnel project towards through rail services are under consideration.

I have nothing at present to add to what I said in introducing the Channel Tunnel Bill on 30th April.—[Vol. 872, c. 962.]

Does the Minister's reassessment of the Channel Tunnel project allow for the study of a rail-only strategy? If not, will he give the House the reasons for rejecting such a study when last autumn he voted in favour of it?

I have explained to the House on a number of occasions that we had to take up the Channel Tunnel problem, the timetable, and the treaty which had been conducted and concluded by the previous Government after the autumn debate to which the hon. Gentleman referred. What we are committed to do and shall do is to see how we can maximise the rail involvement in the tunnel.

Is my right hon. Friend aware that many hon. Members on the Government side of the House feel that most of the studies that have been carried out on the project are more oriented towards making money than augmenting rail services to the Continent? Is he also aware that many of us feel that a thorough-going independent review of some of the figures that have been produced ought to be carried out? When does he think that he will be in a position to make a statement about the kind of independent review that can be carried out?

I said in the debate that my right hon. Friend was concerned with setting up the best possible form of independent review. We do not want duplication of the two studies that are going on. We want to ensure that the House and the public get an independent assessment of the figures, and that we shall do. This review will cover not merely the road-rail aspects but the financial aspects of the whole project.

Before giving his support to a high-speed rail link to the Channel Tunnel, will the Minister first order and publish research into the noise and vibration levels to be expected, because British Rail is at present unable to give this information to my constituents living in the villages likely to be affected?

I should like to oblige the hon. and learned Gentleman. However, I must stress that we, as a Government and a House, have to agree to build the Channel Tunnel. No decision to proceed with the tunnel has been taken. It is wholly conditional, both as regards the Government and the House, on the subsequent study. Obviously, the noise factor and other considerations will be before the House when the Railways Bill and the link come along, and we shall be going into the matter then.

Gipsies (Government Land)

asked the Secretary of State for the Environment if he will cease to permit caravan dwellers to squat on enclosed Government land without permission.

No, Sir. It has been the policy of successive Governments that gipsies, wherever they may be, should not be moved on needlessly when there is no official site for them. It merely transfers the problem elsewhere.

Does the hon. Gentleman recognise the difference between camping on road sites, however desirable or undesirable that may be, and camping on enclosed sites? If the private owner of an enclosed site permitted caravan camping he would be breaking the law, and that law should be enforced against him. Therefore, the hon. Gentleman is setting up his Department against, and placing it above, the law. Surely he does not wish to do that.

The hon. Gentleman must indict his right hon. Friend the Member for Crosby (Mr. Page) before indicting me or my right hon. Friend. We are merely continuing the policy which we believed was right then and believe is right now. I am sure that the problems of gipsies and their camping difficulties are balanced by the problems of people who are often inconvenienced by the detritus of those who engage in these activities. They must be balanced. However, it is no solution to shift the problem from one area where it inconveniences one lot of people to another area where it will inconvenience other people.

Will my hon. Friend seek powers to press local authorities which have not yet provided proper sites for gipsies to do so, as local authorities which have acted in this way are often forced to bear more than their fair burden in providing facilities for people who are British citizens and are entitled to those facilities?

I agree that it is most unfair that local authorities which have carried out their duties under the Caravan Sites Act should often be sabotaged by neighbouring authorities which have not carried out those duties. I strongly urge all local authorities to carry out their duties.

The hon. Gentleman referred to me. Does he realise that I was carrying out what had been the previous Government's policy for some time? Will he ask his right hon. Friend to review that policy now to see whether it is benefiting the true gipsy or, rather, the tinkers who have caused great disturbance and nuisance in the areas concerned?

The right hon. Gentleman emphasises the essential continuity of British politics. He asks for a review. I point out that he had three and three-quarter years in which to carry out such a review. We shall obviously consider the problem. I hope that in the long years of opposition ahead of the right hon. Gentleman he will also consider it.

Building Land

asked the Secretary of State for the Environment what discussions he has held with organisations representing the house building industry regarding his proposals to nationalise building land; and whether he will make a statement.

Special discussions would be premature at this stage, but the National House-Building Council and the House-Builders' Federation have referred to land policy during recent meetings with DOE Ministers on matters of common interest. I shall of course be happy to consider any views they may wish to put to me.

I declare an interest in the industry. Will the right hon. Gentleman make sure that he has such detailed discussions, because, leaving aside the politics of the matter, it is essential for the housing programme that we get the practicalities of the scheme right?

I am glad that the hon. Gentleman declared his interest in the industry, as, before 1970, in a back room capacity, he was one of the achitects of the disastrous Tory Housing Finance Act. I am conscious of the point that he put to me in the latter part of his question and will certainly bear it in mind.

Rented Houses

asked the Secretary of State for the Environment if he will have regard to the observations made by the local authority associations to his predecessor, when formulating policy on rented houses, both in the public and private sectors.

I am always ready and indeed anxious to consider any observa- tions made to me by local authority associations.

In view of the representations that were made to my right hon. Friend's predecessor, when can the local authorities again expect to be accorded the right to set their own rent levels within their own financial control? When does my right hon. Friend propose to dispose of the rent scrutiny boards, which, because of the change of Government, appear to have no future whatsoever?

I hope that this summer we shall introduce a measure both to abolish the rent scrutiny boards and to restore to local authorities their basic freedom, within the ambit of a counter-inflationary policy, to fix their own rents.

When will the right hon. Gentleman be in a position to inform local authorities of the financial compensation they will get from the effects of the rent freeze? It is a sobering thought, as he will know from my constituents and those in many counties affected, that even the present staggering rate increases make no allowance for the extra costs which will come from the rent freeze.

As a result of Government subsidies, 80 per cent. of the cost of the rent freeze will automatically be borne by the Exchequer. I have already told the local authority associations that I wish to discuss with them how the remaining 20 per cent. should be borne.

Mobile Homes (Legislation)

asked the Secretary of State for the Environment if he will introduce comprehensive legislation for the protection of mobile home residents.

asked the Secretary of State for the Environment if he will introduce proposals to give caravan dwellers the same protection as that enjoyed by householders and tenants.

It would not be practicable to introduce comprehensive legislation quickly, but I hope that the talks now going on between representatives of caravan dwellers and of site operators will produce an agreement within the next few months, and that this will provide a basis for the Government to consider action.

Will the hon. Gentleman and the Government stop hiding behind the fact that there may be a voluntary agreement on the matter which will not be enforceable and will not provide many unfortunate people with recourse against deplorable practices? Will he also not hide behind the fact that legislation is difficult, because just such legislation has been introduced in a widespread manner in the United States?

The hon. Lady, who is an officer of one of the associations in question, should know that the talks are proceeding extremely quickly and, indeed, that an agreement may be produced this month. We shall study that agreement with care to see whether it can in some way provide the basis for legislation. I assure her that my right hon. and hon. Friends, as well as she herself, take this problem very much to heart and are anxious to help. However, it would be silly to proceed before seeing the terms of the agreement.

Does my hon. Friend accept that severe hardship arises from this problem and that the matters raised by the hon. Member for Gloucester (Mrs. Oppenheim), with her knowledge of the issues that have arisen in her constituency, can be related not only to caravans but to holiday homes? Is my hon. Friend aware that there is a strong case for the extension of genuine and comprehensive security of tenure for caravan and holiday home dwellers? Does he accept that this is a matter of importance that should be dealt with as a matter of urgency?

I accept that the problem is as serious and severe as my hon. Friend indicates. There are great problems of legal definition, of which he, as a lawyer, will be aware. That is one of the matters that is holding up legislation. However, when we have seen the agreement we shall decide what we can do to deal with the problem. As I say, I agree with my hon. Friend that the matter is one of great concern.

Is the Minister aware that many site operators are not members of the national association and that only through legislation can a stop be put to many abuses, such as hidden key money and blackmail?

We are only too well aware that this is not a comprehensively covered sector. That is why we do not regard the conclusion of an agreement as a solution to the problem. The conclusion of an agreement should enable us to see whether we can act in a more widespread way across the whole sector.

Is my hon. Friend aware that his answer is not satisfactory and that a cursory glance at the literature so far circulated by the bodies concerned suggests that their draft agreements are profoundly unsatisfactory, especially that relating to the resale of caravans and mobile homes? Why is it that we can introduce properly comprehensive legislation for furnished tenants but not for a person who owns his own caravan but not the site on which it stands?

I am well aware that my answer is not satisfactory. My hon. Friend has posed one of the problems, namely, that the people who live in mobile homes are not tenants. If they were tenants they would be covered by the security of tenure provisions. They are owner-occupiers who pay ground rent to landlords. That involves a number of different kinds of definition and bases. That is why the problem is so difficult to solve. The fact that it is difficult to solve does not mean that we shall not try to find a way of solving it to my hon. Friend's satisfaction.

When it comes to the question of an agreement, will the Minister bear in mind that irrespective of whether these people are owner-occupiers or tenants in any sense, it is a question of the security of their homes? The individual hardship that insecurity is causing to many people is having a most deleterious effect on many marriages and futures.

I agree with what the hon. Gentleman says, but the matter is not as simple as that. These people are owner-occupiers living on land that is rented. What is more, they live in property that can be regarded, on the one hand, as a dwelling that appreciates in value and, on the other, as a vehicle that depreciates in value. The hon. Gentleman is a distinguished lawyer and he should be well aware of the problems. I hope that he will help us to try to solve them.

Is my hon. Friend aware that despite everything he says, mobile home dwellers do not have much security, are subject to harassment, and cannot sell their vans very often on the open market? Further, does he appreciate that they are subject to extortionate charges by site owners? Is he aware that many hon. Members, because they did not get much succour and comfort from the previous administration, are looking to him and his Department to introduce once and for all comprehensive legislation that will help these residents?

I accept everything that my hon. Friend says. If we do not move to his satisfaction I hope that he, together with Conservative Members, will continue to trouble us and harass us until we get the problem sorted out.

Building Societies (Talks)

asked the Secretary of State for the Environment whether he will make a statement on his talks with the building societies.

asked the Secretary of State for the Environment whether he will now make a statement on his discussions with the Building Societies Association regarding mortgage finance.

asked the Secretary of State for the Environment if he will make a statement on his recent meeting with the building societies.

asked the Secretary of State for the Environment what communications he has received from the Building Societies Association since Easter.

After discussions with myself and my colleagues, the Building Societies Association decided on 19th April not to recommend a mortgage rate increase, but to accept the offer of up to £100 million in loans from the Bank of England on the terms described to the House in my statement on 10th April. Subsequently the Government informed the association that, subject to parliamentary approval, the remaining loans of up to £400 million will if needed, be avail- able from public funds on similar terms. The council of the association is considering this offer at 4.30 p.m. today. A Supplementary Estimate for this purpose is about to be presented.

By what principle of justice is it suggested that the interest rate for depositors in building societies should be pegged as part of the arrangements? Why should the small saver, who is the typical depositor in a building society, be compelled to subsidise owner-occupiers in this way?

I do not think that it would be right to consider the present investment for building society depositors as unreasonable, given the exceptionally good security and the unusually favourable withdrawal facilities. That is not only my view but it is currently, in the post-Budget situation, the public's view. I am happy to say that the contrast between March and April, in terms of net inflow and outflow, is remarkably favourable.

Now that my right hon. Friend has been accused by some of carrying out Socialist policies, when he next hears the round of whining noises from the well-heeled building society chiefs will he put another £100 million in his pocket and walk straight past them and deposit the money with the local authorities for them to use?

I have already made it clear to the local authorities that there is no ceiling on the amount of mortgage lending that they can carry out.

What action does the right hon. Gentleman propose to take to prevent house prices in my constituency and elsewhere rising as a result of the loan?

I imagine that the hon. Gentleman is reflecting the rage of his constituents that was caused by the virtual doubling of house prices that took place under the previous Conservative Government. We have gone through a period of excessive mortgage lending. That drove up the price of houses, and we then entered a period when there was virtually no mortgage lending, which bust the house building programme. There must be some sensible, intelligent middle way between those two courses, and it is that which we are seeking to achieve.

Will my right hon. Friend confirm that the recent encouraging inflow of funds, which is itself the best rebuttal of the suggestion of the hon. Member for Kingston-upon-Thames (Mr. Lamont), first suggests that there will not now be an increase in the interest rates offered by the building societies and, secondly, that there will also probably not be a full take-up of the money that he offered them?

Has the right hon. Gentleman seen the statement of one of his predecessors in the previous Labour Government who is now Chairman of the Leek and Westbourn Building Society, to the effect that that society will have nothing to do with the Government's loan, on the basis that it will undermine the independence of the society? Will the right hon. Gentleman say whether that is part of the purpose of introducing last month's loan?

No. I made it clear that the purpose of introducing the loan was to increase the flow of funds for house purchase, which had fallen to a disastrously low level, without at the same time allowing the mortgage rate to rise to 13 per cent. That was the purpose, which should be backed by all hon. Members.

Is my right hon. Friend aware that as a matter of principle I, as a small saver in a building society, would welcome the reduction of interest rates because of the hardship that is being caused to people who are trying to buy their own homes, especially young married couples and those who have young families?

I entirely agree with my hon. Friend. I should have thought that everyone who was interested in encouraging house purchase would long to see a reduction of interest rates. That will no doubt take some time to achieve. What we have achieved so far is the prevention of an otherwise certain increase of the existing rate to 12 per cent. and probably 13 per cent.

Why does the right hon. Gentleman describe the rate of interest that building societies can offer as not unreasonable when he knows full well that both the Government and local government have to pay more to persuade people to lend money to them?

I describe it as not unreasonable because of the unusually favourable withdrawal terms and also the unusually strong security that is offered. If we survey relative interest rates, the rates offered by building societies are not unreasonable. The proof of that is that the net inflow into the building societies went up by a dramatic amount in April.

Local Authorities (Overstaffing)

asked the Secretary if State for the Environment if he will report on the results of the inquiry by the then Minister of Local Government into allegations of overstaffing by the new local authorities.

I understand that the information has now been received by the Local Authorities Conditions of Service Advisory Board, which is conducting this inquiry. As indicated in a reply to an earlier Question, I have asked the advisory board for a full report, and I understand that this will be ready in two or three weeks.

Is the hon. Gentleman aware that this report was promised about two months ago, and that even another three weeks will cause considerable anxiety? Does he not realise that the public is very worried about the establishment of local authority staffs at present? Will he do something quickly about it? The undertaking was that this report would be put before the Pay Board. Is it now before the board?

As I think the right hon. Gentleman is aware, the board is carrying out spot checks. The right hon. Gentleman talks about widespread public anxiety, but I remind him that on 23rd January he himself said:

"… reorganisation will lead to the establishment of more large authorities and … there will be more posts carrying greater responsibilities and, therefore, higher salaries."—[OFFICIAL REPORT, 23rd January 1974; Vol. 867, c. 1699.]

British Airways (Dispute)

( by Private Notice ) asked the Secretary of State for Trade if he will make a statement about the strike of cabin staff in the Overseas Division of British Airways.

I have been asked to reply. Air cabin crew employees of Overseas Division of British Airways decided at a meeting of their trade union branch on 6th May to take strike action as from midnight in support of their claims for improved pay and conditions. I understand that the decision was taken against the advice of officials of the Transport and General Workers' Union and is in breach of the agreed procedure for resolving disputes in the industry. As a result of the dispute, British Airways Overseas Division's fleet has been grounded. Other divisions have not so far been affected.

How many cabin crew are affected? Does the strike affect home-coming flights? What action is the Department taking to try to bring the parties together in view of British Airways' stated willingness to set up a working party to look at the hours worked by cabin crews?

I do not know the exact number affected, but from the discussions I have had I would judge it to be up to 3,000. When the strike decision was taken, a number of cabin crews were still overseas. On returning home, they will no doubt be invited to join the strike. Therefore, the number involved will presumably increase as aircraft return to this country.

I held a meeting on Friday with both sides of the National Joint Council for Civil Air Transport as well as with the Transport and General Workers' Union officials and the branch committee of the cabin crews involved. Amongst the points I discussed with them was the setting up of a working party, under an independent chairman, which would be able to examine in full all the outstanding matters in the claim of the cabin crews.

Is my hon. Friend aware that the T and GWU is grateful for the interest he has already shown, although the dispute is taking place against the advice of the national officer concerned? Is he further aware that the dispute is rather more complicated than the hon. Member for Newbury (Mr. McNair-Wilson) seems to think? There are deep-seated grievances amongst cabin staff, particularly over the longer legs of certain flights. Is my hon. Friend also aware that many of us believe that, in the longer term, perhaps one of the solutions which must come about is the licensing of cabin crews so that they can all have proper hours and decent working conditions?

I appreciate what my hon. Friend said. At my meeting with the cabin crews, I was impressed by the large number of difficult issues outstanding in their claim, including the exceptionally long hours they work on certain flights and the fact that their maximum commitment on a flight can extend to as long as 17 hours. They also appreciated, as did members of the joint council, that there is a strong case for examining a whole range of their conditions. This is a good reason for allowing a joint working party to examine the conditions with representatives of the cabin crews on the working party and assessors whom the cabin crews themselves could nominate.

Does not the hon. Gentleman agree that nothing is more damaging to the image of the country than industrial disputes involving airways and, therefore, people who wish to come here? If, as it appears, an inquiry would be the best way of looking into and solving many of these difficult problems, is it not possible to ensure that it takes place? If it is not possible at the moment, who is holding it up and why is it being held up? What is standing in the way of setting it up?

An inquiry is not now taking place because the cabin crews' representatives are not at this stage prepared to accept that an inquiry should go ahead unless some of their outstanding claims are first met. Their attitude stems from treatment they have received in the past in negotiations with their employers. I would not wish to enter with the right hon. Gentleman into a discussion about which type of strike is most damaging to the country, because some might take the view that the miners' strike was more damaging to the country than this one is.

Since part of the trouble originates in endless delay which has taken place, could a time limit be put on the working party?

That is an important point. I canvassed it myself with both sides of the joint council and with the representatives of the cabin crews. I think that it might well assist the situation if there were to be an assurance that the working party would at least make an interim report and recommendations within a limited time.

Complaint of Privilege (Mr. Speaker's Ruling)

Yesterday, the hon. Member for Gloucestershire (Mr. Loughlin) drew my attention to a matter which he submitted was one of privilege. I have considered his submission carefully. I have concluded that I cannot give precedence to the matter over the Orders of the Day as one of privilege. There may be other ways in which the hon. Member can put the case before the House, but I am afraid that I must leave that to him.

I am not challenging your ruling in any way, Mr. Speaker, but would you kindly make plain that this ruling does not give licence to police authorities or any other bodies or persons to ignore or flout actions taken by Members of Parliament to protect members of the public or to redress injustices? I put that to you. I have carefully chosen my words. I have deliberately used those words because I feel that in the circumstances of this case, unless this is made absolutely clear, there is no point in any Member of Parliament in the future attempting to protect any person or any body of persons.

I understand the point put by the hon. Gentleman but I think that I would be unwise to embroider a ruling which I have given. However, I will consider the point he has made and whether it is appropriate for me to take any action of any sort on the matter.

Bill Presented

Lord High Commissioner (Church of Scotland)

Mr. Secretary Ross, supported by Mr. Bruce Millan, and Dr. John Gilbert, presented a Bill to empower the Secretary of State, with the concurrence of the Treasury, to pay an allowance in respect of the expenses attributable to the office of Her Majesty's High Commissioner to the General Assembly of the Church of Scotland of an amount which from time to time the Secretary of State may think appropriate: And the same was read the First time; and ordered to be read a Second time tomorrow and to be printed.

Abortion (Amendment) Bill

3.39 p.m.

I beg to move,

My concern is with one particular aspect of the working of the Act and has regard to a number of scandals that have arisen about referral agencies and advisory bureaux through which a very few unscrupulous operators can flourish. It will be asked, who comes to these agencies? Thier customers may be foreign or British girls who do not know how to set about getting an abortion, or they may be British women who do not want to consult their normal doctor, or they may be patients of general practitioners in areas where it is still difficult to get a National Health Service abortion.

There are altogether about 100 of these agencies, two-thirds of them operating in London and the others spread around the great cities. Some of these are registered charities and many of them—I emphasise this—do excellent work, giving sincere and profesional advice and charging the patient very modest fees. Unfortunately there are a number of black sheep. If the House will forgive me for mixing my metaphors, they might be better described as the vultures of the abortion world.

Often unscrupulous taxi drivers—and this has been well publicised—tout for patients at London and other airports, at Victoria Station and such places. It has even happened—and this is rather a dramatic phrase—that women have been hijacked and taken to some surprising destinations. Others are fringe doctors who seek to get their patients by advertising abroad or giving commissions to doctors in foreign countries. There are a few, unfortunately, who resort to extortion. There are also a number who charge highly inflated fees for this advice. It has been known in a number of cases for charges of £300 to be made simply for some so-called advice about where to get an abortion.

This nasty trade is the unacceptable face of the Abortion Act. It was certainly never intended when the hon. Member for Roxburgh, Selkirk and Peebles (Mr. Steel) introduced his Bill in 1967. It is something unexpected which has arisen since then. I believe that very soon the House will want to act decisively to strike down these greedy men and women who prosper in a rather seedy way and, I believe, not only bring shame to the country in general but bring shame to the vast majority of people in this area of the medical world who seek to do a proper job.

I propose in the Bill to bring these agencies and bureaux under the control of the Secretary of State so that she can license the reputable and outlaw the disreputable. The method of licensing I visualise would be similar to that at present carried out under the Abortion Act for the abortion clinics. The Department would be able to expand its inspection and approval procedures, at present working for the clinics, so that they would cover these bureaux as well.

It will be asked: what would the Secretary of State look for in approving these referral agencies and bureaux? First, and perhaps most important, they should give to their patients objective counselling, social and medical. Secondly, it is essential that satisfactory pregnancy testing arrangements should be made. Thirdly, the doctors working for these agencies should not be the people who carry out the termination. It is also very important that these doctors should not be working on commission. Lastly, there is another aspect at which the Secretary of State might want to look, and that is whether it is proper for these bureaux to have some form of financial link with abortion clinics. This is a point which the House will want to consider later and perhaps do something about.

Is it right that a pregnancy advisory bureau registered as a charity should be used by an abortion clinic as a method of procuring patients for that clinic? There was a dramatic example written about in the General Practitioner a few weeks ago concerning the Park Clinic of East Wanstead. It had apparently covenanted to pay £5,000 a year to one particular agency which was the "selling organisation" or the "bringing-in-of-patients" organisation for the Park Clinic. It was bringing a profit to that clinic of £150,000 a year. I believe many people would say that this undesirable aspect is commercialism to a high degree which has crept into the Act. I believe that if the Secretary of State had the power she would want to investigate this.

The Bill would secure that any person other than a doctor or a person approved by the Secretary of State who, for a fee or hope of a fee, referred a person to a clinic for termination of pregnancy would be guilty of an offence and would be punished accordingly. The penalties would need to be quite substantial because the profits are rather large. On summary conviction a fine perhaps not exceeding £400 could be imposed, or on conviction on indictment a fine or imprisonment for a term, or perhaps both. The essence of the offence—and this would be important—would be the taking of a fee. I would not expect that the measure should affect the useful and constructive work done by social workers in the National Health Service or indeed by journalists who give genuine advice to readers through the rather strange columns of magazines. This is sincere work which I would not want to stop.

I introduced a similar Bill in the last Parliament which was unfortunately scuppered by Dissolution. I hope that the House will agree today to let this Bill go forward again. Anxious as the House may be to have another General Election, I am confident that when the Government come to consider the date they will at that stage bear in mind the progress of this Bill, if I am given leave to introduce it. I commend the Bill to the House.

Question put and agreed to.

Bill ordered to be brought in by Mr. Michael Grylls, Mr. W. F. Deedes, Mr. David Steel, Mr. Leo Abse, Dr. Gerard Vaughan, Mr. John Hunt, Mr. Leon Brittan, Sir Nigel Fisher, Mr. Neville Sandelson, and Mr. Michael Alison.

Abortion (Amendment)

Mr. Michael Grylls accordingly presented a Bill to regulate the referral to, and recommendation of, medical or other services in connection with treatment authorised by the Abortion Act 1967, where the said referral or recommendation is made for reward otherwise than by a medical practitioner; and the same was read the First time; ordered to be read a Second time upon Friday next and to be printed.

Orders of the Day

Supply

[4TH ALLOTTED DAY]— considered .

Agriculture

Motion made, and Question proposed, That this House do now adjourn.—[Mr. Harper. ]

Before I call the right hon. Member for Cambridgeshire (Mr. Pym) may I say that the Chair is in a difficult position today. I already know of between 40 and 50 hon. and right hon. Members who want to speak. May I suggest reasonably contained Front Bench speeches, and no unnecessary interruptions, and that back benchers should try to make their speeches in about 10 minutes each? May I add that there is no point in anyone coming to the Chair to inquire about his or her prospects for at least two hours. It might be counter-productive.

3.49 p.m.

We are debating today what is still our greatest industry—agriculture. It is a wide subject involving every family in the land as consumers. I intend to concentrate on the general position and the livestock sector where anxieties and grievances exist on a high level. The charge we bring against the Government today is that of irresponsible recklessness. In their eagerness to try to acquire popularity in the short run they are prepared to damage and put at risk the longterm interests of this country. They will lose out by staking far too much on the so-called social compact, which will prove fantastically expensive and already looks in a pretty sorry mess.

In our view, the right hon. Gentleman the Minister of Agriculture, Fisheries and Food is playing fast and loose with the nation's food supply. It is not just a question of some farmers going to the wall because of his actions in the past two months, although that in itself is bad enough. The question is, what are the prospects for the nation's supply of home-grown food, not tomorrow or next month but next year, the year after and the year after that?

In the debate on the Queen's Speech, as reported in HANSARD, column 384, the right hon. Gentleman professed his commitment to the maximum economic production of food and to conditions in which British agriculture can thrive. He cannot have been serious. Unless he says something remarkable this afternoon, I am tempted to say that he misled the House on that occasion. Would it not have been more accurate for him to confess that while he way paying tribute to the industry, his colleagues in the Government blocked him from doing anything effective to promote it?

The prosperity of agriculture is of crucial interest to every British consumer, apart from the farmers and farm workers whose level of remuneration must depend upon the prosperity of the industry. What we criticise and castigate the Government for is the confidence trick that they are trying to play on the public. They pretend to be the friend and guardian of the consumer, while the truth is that they are interested only in the short-term effect, which is causing them to neglect their responsibility as a Government for the long-term provision of food supplies.

I welcome the fact that the right hon. Gentleman is to have talks about the future of the industry, but he cannot and must not neglect the immediate situation while he is having those talks. This attempted confidence trick on the public is thoroughly reprehensible, because it is trying to pretend to people that they can in some way be protected from the consequences of the world price situation. They cannot. The consumer still has to pay, one way or another, and it is difficult to imagine a more extravagant or inefficient way of trying to help people than by across-the-board subsidies. They apply to rich and poor alike, and now apply to some items and some makes of cheese of which I confess I have never heard. There are people and families in our society who need help, and that help can and should be provided, but subsidies are a bad way of doing it. They give bad value for the taxpayers' money and are already very expensive under the Government's profligate plans. They also contribute towards a myth that the Government seek to propagate—the hope for cheap food.

The desire to continue a cheap food policy is understandable and it would be marvellous if it were possible. We have enjoyed it for many years, but the reality is that there is no longer any cheap food anywhere in the world. Circumstances are different now, and the right hon. Gentleman will not get his policy right until he recognises that. His erstwhile colleague Mr. George Thomson said only last week,

Is it sensible to increase direct taxation, to add 5p to a packet of cigarettes and 1p to a pint of beer merely to cut the price of milk by 1p a pint? I have yet to meet one person who thinks that that is a sensible policy or the best way to help those in need. It will incidentally frustrate one aspiration which the right hon. Lady the Secretary of State for Prices and Consumer Protection expressed last week in Committee, when she said:

It is the problem of world supply. The right hon. Gentleman admitted that only last week, when he said:

The previous Government believed that it was not only in the interests of domestic consumers and producers to expand production but also a positive contribution to meeting the growing world shortage. On the broadest assessment, is it wise for this country to continue to rely so heavily on imports of food?

We all know what the oil sheiks have done, and we have felt the consequences. Luckily, in that case we have a solution coming along in a few years' time, but what would happen if something went wrong with our food supplies? All the facts of the situation led the previous Government to the conclusion that what was called for was the massive expansion of home-grown food. We are still far from self-sufficient, but the steps we took enabled our farmers to begin closing that gap.

I accept that we need to produce as much food as we can. The right hon. Gentleman spoke of the previous Government's policy. He will perhaps recall that during one of the last Question Times before the General Election the then Father of the House, Sir Robin Turton, drew the attention of the present Leader of the Opposition to the desperate plight of our pig farmers.

I shall be dealing with pig farmers, both then and now.

I will take six commodities and indicate the extent to which we contributed to self-sufficiency in home-grown food supplies during the period of the previous Government. In 1969–70 we produced 42 per cent. of the total supply of wheat used in this country, and the forecast for 1973–74 is 55 per cent. For beef and veal the figures are 77 per cent. in 1969–70 up to 86 per cent. in 1973–74; for mutton and lamb for the same years from 40 per cent. to 52 per cent.; for bacon and ham 38 per cent. to 45 per cent.; for butter 12 per cent. to 22 per cent.; and for cheese 45 per cent. to 65 per cent. All this is for the benefit of the consumer. Those figures show the capacity of those who work on our farms to produce more. That successful programme of expansion is now in jeopardy. Indeed a contraction seems to be the most realistic forecast.

The House looks forward this afternoon to hearing how the right hon. Gentleman squares the solemn words of the Queen's Speech with what has happened since. His beaming, benign bonhomie will not be enough. He has some explaining to do. We hear rumours that he will announce a five-year plan. I cannot believe that—not another of those grandiose nonsenses!

One thing we can agree on is that the very nature of the industry demands a long-term policy because farms cannot change their production patterns quickly or easily—unless through stupidity or oversight some of them are forced into bankruptcy. Unfortunately, that is happening at present, mainly in the pig sector.

As I said in the House in March, at the time of the election negotiations were in progress in the hands of my right hon. Friend the Member for Grantham (Mr. Godber) on the pig and beef sectors and horticulture. There is no doubt that the difficulties began to arise last autumn when my right hon. Friend had to make a judgment, and I know that some of my hon. Friends thought that further action last winter would have been appropriate—and not all of them said it with hindsight. By January, with the three-day week and the oil crisis, my right hon. Friend had embarked urgently on negotiations with the European Community, and he confidently expected to conclude them satisfactorily on 11th March. He has spoken about these negotiations which would have maintained security for the producer without harming our consumers—[ Interruption. ] My right hon. Friend achieved precisely that last year, and would have done so again.

What we have witnessed in the past six weeks is a crescendo of collapse in confidence, and this will require some formidable measures to restore. It took three years to build up from the disastrous level we inherited in 1970, and it has nearly gone in a flash. The right hon. Gentleman has achieved this, apparently in ignorance of the consequences of his actions—or, even worse, in the belief that he has brought off some marvellous deal. We all hoped that he had, but the evidence is overwhelmingly the other way. What is more, it is an expensive way of operating, since we are paying twice. We are still contributing to the Community and are financing the Government's subsidies. I confess my own failure to get through to the Minister of Agriculture the realities of the present situation. I am not alone in that failure, because I do not think anybody else can get through to him on this subject.

Let me remind the right hon. Gentleman about the pig situation. His solution to the problem was, as I have said, unresolved in February because my right hon. Friend, the then Minister of Agriculture, was still negotiating with the Community. The subsidy negotiated by the present Minister has been largely nullified by further drops in end price, with slaughterings continuing at a high rate. It is true that the breeding herd fell by 4 per cent. between September and December last year. In the eight weeks of March and April slaughterings amounted to 9·7 per cent. of the total breeding herd. Continuation of that rate would be a statistical impossibility, but in any case the consequences are—first, an increase in imports to meet home demand; and secondly, that pig farmers will go bankrupt because banks are beginning to foreclose. What a tragedy for the enterprising young men who entered this industry.

I received two days ago a letter from a constituent on this subject, and I am sure that many other hon. Members have received similar letters from extremely worried pig farmers. My constituent says in his letter that approximately three years ago he completed building a unit for 140 sows and poses the question:

Is the right hon. Gentleman aware that his remarks about agriculture amount to a condemnation of the policies—or lack of policies—pursued by the Conservative Government, since the problems of agriculture have not arisen in the last two months during Labour's tour of office but existed a long time earlier? What did the then Government do about the situation? I suggest that they did precious little.

I have already covered that point. From January onwards my right hon. Friend and his colleagues were negotiating to meet the situation. The election intervened, but my right hon. Friend confidently expected to complete a deal, as he had done the previous year, which would retain the confidence of the producer without doing any significant harm to the consumer.

Is it true that there will be a decline of 200,000 tons of pigmeat next year? I know that the Minister is reluctant to forecast, but surely a forecast is essential in assessing next year's food supplies. If there were any truth in a figure of that magnitude, it would be nearly one-quarter of the 1973–74 forecast for home-produced bacon, ham and pork.

On 1st May—only last Wednesday—the Minister of State for Agriculture said in a Written Answer:

I received a letter from the Minister two days ago in which he said,

I also want to ask the right hon. Gentleman—and the House will want to know the answer to this question—about the payment of subsidy. Some producers are not even receiving all of it. Can the Minister make clear that the 50p is for the producers and that they should receive it in full?

The beef situation is, if anything, worse. I do not think it is disputed that losses are now in the region of £30 per beast. There is no longer any guarranteed price and the Minister has opted out of intervention. The 6·3 per cent. he negotiated was not enough and has contributed to the damaged confidence among producers. Unless producers have an assurance not of an excessive but a reasonable return in the light of known costs, how can they have the confidence to continue in such a long-term business as beef production?

The slaughtering figures continue to be alarming. The Minister provided me with figures showing that in the last eight weeks of March and April calf slaughterings were 50,000 tons compared with 24,500 tons in the same period last year. No wonder we are concerned about the situation. What will happen now is the double blow of future shortage and sharper price rises. The Government know perfectly well that this is positively detrimental to the consumers' interests. The Minister recognises that the situation is impossible He said last week,

I want to set out for the House, because it is right that I should do so, the position of my party on this subject. I quote only one paragraph from a speech made last Saturday by my right hon. Friend the Member for Grantham:

I turn to one other important aspect. The crisis in the livestock industry today is especially serious in Northern Ireland, whose agriculture is almost entirely livestock and employs nearly 16 per cent. of the working population. That is a huge proportion. and it explains why the anxiety and the anguish felt on this subject in the Province has to be experienced directly to be fully appreciated. I urge the right hon. Gentleman to keep Northern Ireland very much in mind because of the very great importance of the livestock industry to the whole economy of the Province.

Undoubtedly part of the trouble at present derives from the Government's wrecking approach to the European Community. The common agricultural policy was always in need of improvement and adjustment. That is a continuous process in which Britain was playing a leading réle. [ Interruption. ] The previous Labour administration accepted that it needed adjustment, but they accepted it in principle. Individual Government supporters may not have accepted it but their colleagues in the Government did so. As I say, we all accepted that it needed adjustment and improvement and that that is a continuous process in which we were playing a leading réle, believing that over a period of time a more sensible and sophisticated agricultural policy would emerge.

What producers in the United Kingdom are suffering from immediately and what consumers will suffer from a little later on is the spanner that this Government have thrown into the European works. Led by the Foreign Secretary, they have thrown in a big spanner, and the Minister of Agriculture has put in another spanner of his own. This disruption will bring a trail of trouble in its wake. Prices are no longer commensurate with costs——

Will the right hon. Gentleman look at the present situation and realise that the common agricultural policy is in a state of crisis? How many crises do our farmers have to go through in meat, milk and pigs before it is agreed that the CAP will never work? Is not that something which the Conservative Government should have known long ago before they ever took us into the Common Market?

day after day and night after night dealing with this subject. I shall not easily forget them.

The immediate cause now is the spanner that this Government have thrown into the works. Prices are no longer commensurate with costs. Unfair competition within the Community has not been adjusted and cannot be adjusted any further as long as the United Kingdom remains as far out of line with the rest of the Community as the Minister of Agriculture has arranged.

My view is that the general disturbance to which the Government have contributed, and which was as unnecessary as it is disruptive, is now such that a fresh approach will be needed if stability and confidence are to be restored. That is a matter which we shall seek an early opportunity of discussing with the Commission. The farming industry is aware of the advantages of our membership of the Community, and many farmers regret that the transition period is not already complete.

We have witnessed an extraordinary transformation in our food and agricultural situation in a matter of weeks. Of course the problems began before that, as I have said, but they could have been solved and remedied in March, whereas in fact they have been made worse.

The full significance and implication of what is happening is not yet understood outside the industry or outside this House. For the sake of a supposed immediate popularity with the consumer, this Government have sacrificed the confidence of the producer and thus contributed directly to a fall in the level of our future home-grown food supplies. We believe that it is essential to ensure a fair and reasonable return to producers. That is the basis of my party's food supply policy. We believe that an increase in the amount of food grow at home is in the national interest from every point of view—consumer and producer alike.

In my comparative short time in this House representing a rural constituency, I have never known the food producing industry so anxious or so angry. To achieve a restoration of confidence and thus a return to expansion the right hon.

Gentleman has a great deal of work to do. If he cannot do it today, he had better make way for someone who can.

4.15 p.m.

The right hon. Member for Cambridgeshire (Mr. Pym) has hurled a great many epithets and a lot of abuse. However, I hope to deal with the specific matters that he raised. I intend to take Mr. Speaker's advice, but I hope that I shall be enabled as Minister to explain some of the matters which have been put to me. Mr. Speaker has asked us all to be brief, but I shall try in a concise speech to reply to the matters raised by the right hon. Gentleman and those likely to be raised in the course of the debate.

I am very glad that we are having this debate because it enables me to set out plainly and, I think, clearly the Government's approach to agricultural policy, both now and in the long term. The right hon. Gentleman asked me to do this.

I want later in my speech to talk about the longer term, because that is what is really important for the farming community. Agriculture is a long-term business, and it is the approach of the Government and of the industry to the longer term which will determine how great is the contribution that British agriculture can make in the future to our national well being. First, I want to look, as the right hon. Gentleman did—and I have no doubt that the right hon. Member for Grantham (Mr. Godber) will take the same view—at what the Government have done since taking office and at what have been the reasons for the policies that we have pursued.

We took office at a very difficult moment for agricultural policy. The old support system based on the Agriculture Acts of 1947 and 1957—a system which served the nation and the farming industry well—had been half-removed by the previous Government. The new and very different system of the EEC had been very largely introduced. The Annual Review had just been completed, and the determinations made. But the Brussels prices for 1974–75 had not been fixed. That meant that the Government had to decide in the very first weeks of office what to do within the framework of the Community system that we had inherited.

I went to Brussels determined to do two things, and I reported the package deal to the House. I remind the House that the first one was that I would not be a party to importing an extra inflation of food prices to add to the massive inflation over which our predecessors had already presided. The other was that I would get a fair deal for British agriculture which met the immediate problems in the beef and pigmeat sectors.

Let me take the two sectors in turn. On beef, we faced the basic difficulty that the system of guaranteed prices and deficiency payments had been removed. That system may not have been perfect, but it had suited the conditions of this country. It had given farmers the confidence to plan ahead and to expand production and, at the same time, it had allowed consumers to benefit from an ample supply at reasonable prices.

I always defended this system. I believe that it was to the great credit of the first Labour Government after the war that it was brought into being.

The right hon. Gentleman is defending the system and claiming that it helped to expand production. In view of the figures quoted by my right hon. Friend the Member for Cambridgeshire (Mr. Pym) illustrating how substantially production was expanded, is it not clear that the previous system did not give that encouragement?

The system that we created in the 1947 Act was never removed. It operated and it gave long-term security. I am sure that the right hon. Member for Cambridgeshire accepts that. As I say, it had given farmers the confidence to plan ahead and to expand production, and it had allowed consumers to benefit from an ample supply at reasonable prices. But it had been removed. In its place we had the EEC system, with its reliance on permanent intervention which meant that, whatever the market conditions, high quality beef which the consumer would be perfectly ready to buy at reasonable prices could be offered to the Intervention Board and taken off the market. Then it would be frozen down, thus greatly reducing its value. It would be stored at high cost—if the storage space could be found. Finally, it would be sold at a loss, exported below cost or just left in store on a more or less permanent basis.

I did not find that system attractive. When I attempted at one time to bring in support buying and to discuss it in the context of setting up a meat and livestock commission, I was criticised, and I eventually dropped it. I do not think that the intervention system is working. The experience of other member countries is showing how difficult it is to support too high a price by means of permanent intervention. That was the crux of what we were discussing in the Council of Ministers in Luxembourg last week and in Brussels yesterday. I was determined that I must have the option of refraining from operating this system. secured that option and as a result no beef has been taken off the British market and put into intervention since I took office. I secured a much smaller increase in the United Kingdom guide price—6·3 per cent.—than the increase of 17 per cent. that we should have had to accept if the previous rules had simply been followed to the letter.

I did these two things for the British consumer and I make no apology for them. However, I did not neglect the interests of the beef producer. I secured agreement to a massive increase in the calf subsidy of £10 a head and special arrangements to safeguard the bee industry in Northern Ireland. These measures, costing £38 million in a full year, bring the total direct subsidies to United Kingdom beef production to about £100 million a year. That is the equivalent of over £2·50 per live cwt. on all our beef production. That support is not available to producers in other member countries. The subsidies are: for hill cows £25·3 million, for beef cows £10 million, calf subsidy £27 million and the extra calf subsidy £38 million.

It is intended to make a sure contribution to the level of producers' returns and to safeguard future supplies by providing a strong incentive to retain and rear calves for beef production. That was the aim. I recognise that many beef producers feel that this combination of measures is not enough. I met many hon. Members only this morning, and I discussed some of the problems with them. I know that they feel that this in itself will not provide sufficient guarantee of future incomes. Let me assure them that it is no part of the Government's intention to let market prices for beef fall to unrealistic levels. We shall be watching developments very closely to see what, if any, temporary measures may become necessary to prevent this—[ Interruption. ] We shall want all the beef we can get from our farms in the future and we must be prepared to pay reasonable prices for it—[ Interruption. ] I cannot agree, however, that it would be right to go for market price levels that choke off consumption, as happened only a year ago——

Not at the moment. I propose to develop my argument.

Beef is produced for people to eat and it must be sold at prices they can afford. I will state three elements in the economic environment of beef production. First, there is the support that continues to be afforded by the EEC's import regime and the fact that our market is linked with the markets in other EEC countries by the system of compensatory amounts; secondly, there is a firm assurance that the Government have no intention of letting market prices fall to unrealistic levels—[ Interruption. ]—and thirdly, there are direct subsidies of £100 million a year.

Those elements represent firm evidence of our intention to sustain beef production in Britain. I ask the leaders of the industry to recognise that and to work with me to sustain the confidence of the beef producer. I ask them and right hon. Gentlemen opposite to look at the facts before talking of a declining confidence.

In the last month of the last administration the average price of clean fat cattle at the livestock auctions was £18·25 a live cwt. Last week it was £18·50 and this week it is up again. Add on the £2·50 of subsidies and that produces a return which, given reasonable prices for store cattle, must surely give confidence for the future. Furthermore, at these prices beef is a good buy for the housewife; and increasing the consumption of beef is the best assurance of all for the future.

Surely what the Minister has said merely throws into ridiculous and ghastly perspective the several hundred million pounds his Government are prepared to throw away in food subsidies, which is a totally unrealistic assessment of the situation. If the housewife is able to buy relatively cheap beef this year, next year there will be no beef at all.

I believe that my Government are right to give certain direct subsidies for food. We said at the election that we would do that and we are fulfilling that election promise. That is only right.

I cannot give way again. I promised to be brief and I intend to keep that promise.

I do not claim that we have devised the perfect policy for the indefinite future, nor, I am sure, has the Community as a whole. I believe that we all have to find a better support system for beef which takes account not only of the producer's need for an assured return but also of the consumer's need for supplies at prices he can afford. I hope to play my part in working out such a system. That is my approach to the beef question.

What is Conservative policy on the issue? It was spelt out by the right hon. Member for Grantham and again today by the right hon. Member for Cambridgeshire. They would try to negotiate an increase of 11½ per cent. in the United Kingdom price instead of 6 per cent., and they would have operated intervention. Make no mistake about it, we should certainly have seen intervention. The Intervention Board had already taken some beef into intervention in Northern Ireland at the old intervention price. I leave the House to imagine what an increase of 1l½ per cent. in the intervention price, coupled with the operation of permanent intervention, would have done. So the British people must know what the Conservative attitude is to the consumer. Tory policy is to take good quality beef off the market on a permanent basis in order to force up the price. The housewife has to pay for what is left. That policy is an affront to the consumer. I do not believe that it is in the true interest of producers either.

Before I leave the question of beef I wish to refer briefly to the action the Community has taken in the last few days to sustain the beef market. The main measure is the linking of imports of frozen beef from third countries with the obligation to buy the same quantities of intervention stocks. This is called "jumellage", or "twinning". It should at least get some of the intervention stocks to the consumer, but only experience will show whether it operates as too severe a restriction on imports, or whether the price set for intervention beef is too high. I reserve judgment for the present but I shall be prepared to take this up with my colleagues in the Council of Ministers if the system works to the disadvantage of this country.

I turn now to the pig situation. Here again we found on taking office that the previous Government had left us a difficult problem which they had done absolutely nothing to solve. The huge increase in cereal prices had meant a large increase in production costs. For a time the market price had met these costs, but for the two months before we took office it had been well below them. As a result sow slaughterings were at a very high level and the supply of home-produced pigmeat was in danger. Nothing had been done about it and we were faced with two possible approaches. One was to try to force up the price of bacon and pork to the consumer. The other was to give the pig producer direct help in the form of a subsidy to tide him over the worst of his difficulties. We chose the latter.

We introduced a special subsidy of 50p per score dead weight to run at that level for the months of April and May and then to be phased out over June and July. The cost was £15 million and the subsidy was framed in that way because it was the expectation of the industry itself that pig prices would firm up as the months went by, as the compensatory amounts paid on imports were automatically reduced, and as last year's sow slaughterings resulted in a somewhat lower level of home production.

So far the market has not firmed up as the industry and trade expected, but there is still reason to believe that prices will be firmer later in the year. Meanwhile, I shall continue to watch the situation very closely. The right hon. Gentleman and his colleagues have asked me to do this. A census report will shortly be available on this matter and the results may prove to be more encouraging than some of the more recent pessimistic reports have suggested.

I was glad to note that in the weeks around Easter the level of sow slaughterings dropped and I hope that the next set of figures will show this trend continuing and that the slight reduction in the prices of cereals and cereal feed is also a sign of better things to come. Certainly, I believe, and I think many in the industry also believe, that producers who hold on through the present difficulties with the help of the subsidy will find their perseverance justified.

Our policy was to give the direct help that was needed and to give it promptly. The only alternative would have been to try to change the rules on monetary compensatory amounts and so force up the price. But that would have had a much smaller effect on producers' returns. The effect would have been to reduce monetary compensatory amounts by about 20p a score. But that does not mean that the market price would have been affected by that amount. It could well have been less. So what we did gave much more to producers, and we gave it right away.

Before I leave beef and pigs let me make one final point. I have been accused of paying for agricultural policy twice over—once in our contribution to FEOGA; the other in the direct subsidies I have introduced. It ill becomes any member of the previous Government to taunt us with the size of the contribution they committed us to pay to FEOGA. And as for direct subsidies, I hope I shall always be prepared to give the agricultural industry the help it needs.

I have listened carefully to my friends in Northern Ireland and I am pleased to see the right hon. Member for Fermanagh and South Tyrone (Mr. West) present. I acted quickly when representations were made to me. It is sometimes necessary to have a direct subsidy despite what may be said about Community rules. I believe that I am right to take such action and, as always, I shall continue to consider the representations which hon. Members make. I am prepared to give the industry the help it needs.

I apologise for spending so long on these two commodities, but they lie at the heart of the criticism which the right hon. Gentleman has launched at me. I would like to refute in detail what he said but I must say a word or two about other main commodities——

I am grateful for what the right hon. Gentleman has said at length about these two particular sectors, which are most important. But does not what he said amount to the fact that he has no intention in the immediate future of making any changes?

I have never said that at all. [HON. MEMBERS: "Answer."] I have been asked a direct question and I have answered it.

I should like now to deal with the other main commodities. The root of the present difficulties of the industry is still the imbalance between the prices and profitability of cereals on the one hand and those in the livestock sector on the other. I am well aware that dairy farmers are concerned about the margin over costs next autumn and winter, and I can assure them that I shall watch the situation closely. [HON. MEMBERS: "Oh."] If hon. Members do not want me to examine the situation, what do they want?

Egg and poultry producers are also having to meet high feed prices and this, too, is causing its problems. Cereal prices have come down a little but are still undesirably high. Of course, the high cereal prices have been good for the cereal growers and cereals are not the only buoyant sector of the industry. Sheep prices are high and the prospects are good.

In the arable sector we have acted to deal with any surplus of potatoes which may be present at the end of the season as a result of the export ban introduced by the previous Government. We have agreed that good quality ware potatoes remaining on farms at the end of the season will be bought by the Potato Marketing Board, with assistance from the Exchequer, at £18·50 a ton. This should safeguard the market against fluctuations in supply and prices until the new crop arrives. For sugar beet, there is an increase of 9 per cent. in the minimum price applying in the United Kingdom.

In the horticultural sector we have given help, which has been widely welcomed, to meet the increased cost of oil for heating glasshouses. I announced to the House a £7 million subsidy. How can it be said that I am apathetic and indifferent? That is not true.

Lastly, for the sake of completeness, I should inform the House that at last week's Council of Ministers agreement was reached on a subsidy scheme designed to encourage the production of dehydrated fodder. The scheme will come into force later this month and the rate of subsidy will be £2·8l per ton.

Finally, I want to say something about our policy in the longer term. We said in the Queen's Speech that our aim was to encourage the maximum economic production of food by the farming industry in the interests of the national economy. Our agricultural land and the skills of our farmers and farmworkers are priceless national assets. There is general agreement here; it is not a party issue. It is the Government's aim to ensure that those assets are used to the full, and in the ways that best serve the interests of the nation.

To do that we need to define a strategy for the longer term. If that is to be done successfully it has to be done in collaboration with all the interests concerned. That is why I have invited the farmers' unions and the other interests concerned to discuss the long-term future of British agriculture with the Government. Our aim will be to take a view over a much longer period than the one year on which we inevitably concentrate at successive Annual Reviews. I am glad that the industry has responded.

We shall try to define the fundamental aims of agricultural policy over a period of years, to establish in what sectors and in what ways expansion can best take place, to determine what should be the directions in which British agriculture should be encouraged to develop. The answers can only emerge from the study and discussion, and I am glad to say the discussions have begun. But of this I am sure: I am certain that the expansion of our agricultural production is in the national interest. I am certain that it is the duty of Government and industry to work together to bring that expansion about. The means by which we can achieve the aims of long-term policy will of course be very largely influenced by the outcome of our negotiation of the terms of accession to the EEC. The right hon. Gentleman chided us for our views on Europe. I believe that the British people want a re-examination of the terms and that they want to be consulted, because they were never consulted by the Opposition when they were in power. I hope that renegotiation will not be a lengthy process. I hope that it will be successful, and I hope that as a result the common agricultural policy itself will become more flexible and better matched to the needs of producer and consumer alike. But whatever the outcome of renegotiation, what really matters is the basic attitude of the British Government to the agricultural industry. This is what will determine our course of action whatever the circumstances in which we find ourselves as a nation.

The prime task of Government in this sector is to see to it that there is an ample supply of food at reasonable prices. But equally we have to ensure that farmers get their due reward, so that they have the confidence with which to maintain their production and increase it where increase is called for. It is not a simple task.

Together with the unions in the industry, we are determined to succeed. I believe that we shall prove by our action that we are determined to see an expanding and flourishing agriculture in this country. I believe that we are doing the right thing.

4.40 p.m.

I have the honour to follow Simon Wingfield Digby as the Member for West Dorset. As many hon. Members will know he served that constituency for nearly 33 years, during which time he held office as a Minister of the Crown, served with and eventually led our delegation to the Council of Europe and gave dedicated service to this House and this country. It has been my privilege to work closely with him in his own constituency for the last 16 years and I can assure the House that his interests and work in Parliament are more than matched by a genuine love of his constituency and a real concern for his constituents and their problems. I am sure that he will carry the good wishes both of the House and of West Dorset in his retirement.

His retirement gives me the opportunity to speak for and to serve what must be one of the most beautiful and unspoiled constituencies in the United Kingdom. In his works, Thomas Hardy has sharply drawn the grandeur and rugged beauty of our coastline and countryside of Dorset, and every year more and more visitors join us to share that beauty.

The towns in my constituency, in particular Bridport, Lyme Regis, which this month will be celebrating its 1,200th anniversary, Dorchester, Sherborne and, last but not least my home town of Beaminster, provide the focal centres for commerce and industry. The surrounding villages and countryside are the homes of our most important industries, agriculture and tourism.

But with all that it has to offer, Dorset equally provides a tremendous incentive for people to come and retire. Like most other parts of the West Country, we have been a natural target for second home buyers for many years. This has put enormous pressure on an already buoyant house market and has helped to push up the price of even the most modest cottage to a level which is prohibitive for most of the young people who live and work in Dorset.

It is against this background that many people in rural and agricultural areas will, I am sure, have warmly welcomed the Chancellor's Budget statement on the withdrawal of tax relief on mortgages for second homes. I am sure that this measure will be seen to be fair, especially in the rural and agricultural areas like West Dorset, where the pressure is greatest and the wages are often the lowest in the country.

The subject of this debate is billed as agriculture. Already, concern has been expressed and will continue to be expressed for the future of our industry. But I would extend that concern, as I am sure would every hon. Member, to include everybody, every consumer, in the country. Every man, woman and child has a vital interest in the future of the industry.

At the moment, our farmers produce almost all the eggs, milk, cream and poultry that we consume, a large part of our beef and nearly all our potatoes. Over the last ten years, they have dramatically increased in particular the home output of beef from 46 per cent. to 65 per cent. of our total consumption. This is surely a record of which all of us involved in agriculture are proud and every other person in this country should be proud of it as well.

This expansion at home has coincided with an explosion in farm prices abroad which has virtually wiped out the supplies of cheap food from traditional sources on which we have relied for the last 100 years. If we face a crisis, therefore, it is a crisis which affects not simply our farms and our farmers but all of us, because we now have to rely much more on our own home production, complemented by that of our EEC partners where necessary.

At the centre of this crisis lie the spiralling costs of every input commodity that our farmers need. The Minister has already mentioned the steep rises in animal feeding costs. They have risen by 70, 75 or 80 per cent. in a year. The price of diesel fuel has risen by 100 per cent. and the cost of tractor replacements is soaring all the time, having risen 50 or 60 per cent. in the last two or three years.

All these input prices go up, but the farmer has seen his income at best remain static and often fall drastically, particularly in the last six months. It is the all-important dairy, pig and especially at the moment beef farmers who are hardest hit. All confidence that the situation will improve during this year has been lost, and grim forecasts are being made about the position next winter.

The symptoms are quite clear. The Minister said that he wished to restore confidence. We all wish to do that, but when calves which would normally have been reared for beef are being slaughtered in their thousands, we face a situation which cannot be tolerated. For example, in the first three weeks of April last year, 8,300 calves were slaughtered. In the same period this year, the figure had more than doubled, to 17,200. This is a measure of the lack of confidence in the industry, especially in beef farming, and is a clear warning of the shortage of home-produced beef that lies ahead.

The Minister was kind enough to see me the other day and discuss this matter with me. He gave me the impression that the market was firming up. I tried the market myself the following week with seven store cattle at Yeovil market. Far from the market firming up, I found that, instead of the £83 that I had received the previous year for an equivalent number of cattle, the figure had fallen to £51. That is intolerable and it is something that is being experienced in every market in the country. The auctioneer told me that confidence had now gone completely, and goodness knows when it will come back. It is on store cattle and their supply that we have to rely if we are to have a finished product coming through at the end of this year.

I should like to quote a letter that I received this morning from a small farmer. I speak as a small farmer myself. He writes:

The reason for this trend is not hard to establish. The Minister has withdrawn the vital safety net that we believe was afforded by the Community intervention price. No one will claim that that intervention price as it stands is sufficient, but it was an insurance policy of a kind and it has now disappeared completely. Had my party been returned, we should have negotiated last month for an increase in that price.

There is a serious crisis of confidence in the farming community. That is unquestioned, and I do not believe that any hon. Member in the face of the figures could deny it. The figures are all-important; they show clearly that there is a crisis of confidence and all the signs are that this crisis will deepen unless the Government take positive steps immediately.

The Minister mentioned the problems which might face milk producers in the autumn. He will know better than I that our grazing season has already been cut short. We have had a miserable spring and already, when people would normally be out making silage, they are not doing so. There will be a dramatic fall, I am certain, in forage crops this year. Certainly the hay fields show no sign of any movement.

A testing time will come in the autumn, when the shortages now being built up will be reflected in higher prices. While subsidies may veil the truth for a time, they are at best a short-term palliative and an escape from the realities of a high-price world situation. If confidence is to be restored and production levels raised again, the solution must come from long-term assurances.

I am sure that everyone on this side will welcome what has been said today about getting together with the NFU and others in the industry to take stock. But they will need to be hard and concrete assurances and not only for the future but for the present, because the crisis is here now. There must be a return to the support system and the common agricultural policy of the Community. That has provided a safety net in the past and I believe that we must have such an assurance in future.

4.50 p.m.

It falls to my pleasure to congratulate the hon. Member for Dorset, West (Mr. Spicer) on his maiden speech in the House. I am sure that Members on both sides of the House heard with pleasure his kindly reference to his predecessor, a very respected Member, and enjoyed his description of his undoubtedly beautiful constituency. The hon. Gentleman was speaking on a subject which must be close to the hearts of many of his constituents. The House will look forward to hearing him speaking on many occasions on this subject again.

I found the speech of the Minister of Agriculture profoundly disappointing. The Minister knows perfectly well that I have made clear in previous interventions and speeches in the House that I thought that the previous Tory administration brought the livestock industry of this country to the brink of disaster. The problem that the Minister and his Government have to face is whether they are prepared to preside over that disaster.

I am sorry to say that today the Minister gave me the impression—I hope that I am wrong—of being as out of touch with the true nature of the crisis in agriculture as were his predecessors. I have no doubt that many of the gravest errors were made by the previous Government. The speech of the right hon. Member for Cambridgeshire (Mr. Pym) was highly hypocritical in the light of his Government's failure to deal with the agricultural situation.

People do not face bankruptcy after only two months under a different Government. These things are built up over a long period. Many right hon. and hon. Members on the Conservative benches were, to their credit, critical of their own Government's agricultural policy. But whatever the degree of blame—the largest degree of blame for the present crisis rests firmly with the previous Conservative Government—it is, nevertheless, in the hands of the present Government that the levers of power now rest. It is only the right hon. Gentleman's Government who can now prevent the bankruptcies—I repeat the word "bankruptcies"—that now face the farming industry.

As the Minister knows, I represent an almost entirely agricultural constituency. In relation to the whole population, there is a greater proportion of people in my constituency concerned with and dependent on agriculture than in any other constituency. The nature and the degree of the crisis in agriculture today is very great indeed. I was born in a farming family in the 1920s. I was born and brought up during a period of slump, in a very closely-knit social community in rural Wales. I always remember my family telling me of the experiences of those days. I have since always been closely intertwined in my life with the agricultural community. I have never known of that kind of crisis situation until the last eight or nine months or so.

There is no doubt that we are now in the midst of the greatest agricultural crisis of our adult lives. That must be so for most of us. The Minister—I give him his due—inherited a very difficult situation. No one can disagree with him when today lie talks of the great need for a long-term review of agriculture. That is undoubtedly necessary. One cannot plan agricultural production from week to week or from month to month, or even from year to year. There has to be some certainty about what the country requires of the agricultural industry, about what rewards there will be, about the products upon which we are to concentrate and about the degree of imports that we are to have. What is the home production to be? All this must be agreed by negotiations between the farming unions and the Government and all other interested parties.

On that score, I have no quarrel with the right hon. Gentleman, save to say that I think that what he wants is a five-year agricultural strategic review. I pressed the previous Government to have such a review, but they refused. The right hon. Member for Grantham (Mr. Godber) knows very well that I pressed for that on a number of occasions, but he would not have it. I think that the present Minister did agree with that suggestion.

But that is not the immediate crisis facing agriculture. There are some farmers in my constituency whom I consider to be the salt of the earth. They are people who are running family farms—farms which today are not peasant farms but are highly capitalised. These farmers are profoundly worried about the future. They ask me, "Should I sell my farm? Can I continue, with three children at school, in the present situation?"

Most hon. Members are often out of touch with the reality of the situation. They receive their information from statistics which are circulated by the various national unions, statistics which are garnered from figures submitted. I want to give one or two concrete examples from my constituency.

A small farmer in Montgomeryshire bought eight bullocks at Newtown at the end of October 1973. He paid for them £146 per head. They were sold in Welsh-pool last month for £136 per head. That is far less than he originally paid for them. They had been fed on bought concentrates and home-produced fodder for six months at an estimate cost of £22 per head. This farmer's total loss, ignoring labour and the work of his family. was £256 on eight bullocks.

Another farmer bought in Newtown in October 1973 20 weanlings for £93 per head. They were fed on bought concentrates and home-produced fodder at a total cost of £17·50 per head. They were sold last month at Welshpool for £88 per head. The loss, including keep, was £22·50 per head.

Two representatives of the NFU in my county, who have made inquiries on my behalf, have told me that in the local knacker's yard in Montgomeryshire there has been an increase in the slaughter of cattle recently by 400 per cent. and that most of the cattle there are in-calf cows. The truth is that there are many farmers who are at the end of their overdraft facilities—this is the reality of the situation—and who have had to send their cattle for slaughter. They could not feed them. They have ended up in the knacker's yard because they were unfit to go anywhere else.

That is a glimpse of the reality of this crisis in agriculture. Farmers have little patience with the kind of party bantering that occurred between the Front Benches today. The right hon. Member for Cambridgeshire does not have a leg to stand on in this matter, any more than have the Government. The farming community is asking what is to be done to get us out of this immediate crisis.

Pig farmers are in the same situation. In my home town of Llanidloes the number of wearers going through is half what it was last year. The in-pig sows going to market have for months been an enormously high proportion of our production. This crisis is facing thousands of farmers. How on earth shall we get out of it?

The Minister may be quite right to talk of future policy and the need to consider these things strategically. Of course that is necessary. But the immediate problem facing the working farmers who have come to the House today and lobbied Members of all parties is how we shall get over the interim period. It is on that aspect that the Minister's speech today was full of cliché after cliché from their point of view and was so terribly disappointing.

I suggest that the Minister tackles first the immediate problem and, secondly, the longer-term problem. The right hon. Member for Cambridgeshire attacked the Minister but did not suggest one remedy to deal with the immediate crisis in agriculture. I think that the Minister was right in his cynicism of the intervention procedure. It is a totally wasteful mechanism. His great mistake was, not that he threw the intervention mechanism overboard, but that he did not replace it immediately by something else.

I agree with the right hon. Gentleman about the guaranteed price. As he knows, I have maintained all through the years that the mechanism of the guaranteed price was of the greatest benefit to people in Britain. What the right hon. Gentleman did was to get rid of the intervention price without replacing it by anything else. That was his mistake. The first thing he should do now—he could do it within a week—is to bring the guaranteed price back for beef.

The hon. and learned Gentleman has been treating the House to a great spate of criticism of this Government and of the previous Government. Is he enunciating Liberal Party policies in what he is now saying?

Certainly. My right hon. and hon. Friends were enthusiastic supporters of the Common Market.

No, I was not. I admired the enthusiasm of my right hon. and hon. Friends without emulating it. But all of us took the view that Britain should take a very robust attitude towards the common agricultural policy once we were in and seek to change it. Our criticism of the Minister is not that he is trying to change it but that he is not being robust enough in doing so. If he has to ignore the purity of Common Market agricultural principles to introduce the guaranteed price of beef, by all means ignore them and bring in the guaranteed price for beef and bring in a deficiency payment now for pigs. Put confidence back in the market.

Even though these would be drastic measures, I should have thought that right hon. and hon. Members on the Tory benches could support them as temporary measures to try to save British agriculture. Surely the Common Market is not a sacred cow to be worshipped now that we are in. We want to see a little more flexibility on both sides of the House.

Surely it is necessary for the Minister to look immediately at the way in which the Common Market agricultural policy has been misused. How can he justify the subsidy paid on imported meat from the continent into this country? How can he justify what is going on concerning meat coming from Ireland which is benefiting by way of subsidy under the Common Market system? How can he justify what is happening with eggs? Surely the Minister can put a stop to these things.

If it means this country taking unilateral action which will temporarily upset our friends in the Common Market, let us take it. The Leader of my party and my hon. Friends agree entirely with this view. Now that we are in, do not let us be sheep about it; let us throw our weight about.

Had it not been for the Liberal vote the Conservatives would not have got in. Some of these Conservatives are Gaullists.—[ Interruption ]

Order. The hon. and learned Gentleman has been speaking for 15 minutes already. Mr. Speaker asked hon. Members to restrict themselves to 10 minutes. Therefore, I hope that the hon. and learned Gentleman will not be further interrupted.

On a point of order, Mr. Deputy Speaker, Surely the spokesman for a group in the House should be accorded the same benefits as spokesmen for the two major parties.

The Minister needs to do something now. It is not enough to express sentiments about agriculture. I am sure that hon. Members on both sides representing agricultural constituents, whatever their views on agricultural policy, know the nature of the crisis. The Minister needs to do something now. I hope that when the Secretary of State for Scotland winds up the debate he will outline measures that bring confidence to the industry.

In the longer term the crisis that is affecting agriculture now is the nation's crisis tomorrow, because nothing so pushes up prices as scarcity. What we are in the process of doing in Britain is deliberately creating scarcity. We are eating our seed corn. The breeding animals are being consumed. That is itself depressing the price. Within a year or two, prices will be sky high. The richer, well padded people will be able to wait until prices rise in a couple of years' time. The people about whom I am concerned are the working farmers, the people who cannot survive that long.

That is why there is such an important responsibility resting on the Minister today. He can go down in history with monuments in the way of empty farmhouses occupied by holiday makers, with farms having been sold and bought by great financial interests which want to move into land for various reasons. For that is the reality of the consequences facing the working agricultural community.

I therefore appeal to the Minister to give an impression of much greater urgency. What we want is not so much activity from his Ministry now as action.

5.6 p.m.

I am delighted to know that the Liberal Party now admits that it was wrong in voting for the common agricultural policy.

I cannot congratulate the right hon. Member for Cambridgeshire (Mr. Pym). Indeed, I do not think I have ever heard so much nonsense from a Front Bench speaker as we heard from the right hon. Gentleman.

As the hon. and learned Member for Montgomery (Mr. Hooson) rightly said, there is an agricultural crisis, but that agricultural crisis is the direct result of the abandonment of guaranteed prices and deficiency payments. They were abandoned by the last Tory Government simply to comply with the disastrous Treaty of Accession to the EEC in 1972. That is where the responsibility lies for the present crisis. The only way out of the crisis is to return broadly to the system of guaranteed prices and deficiency payments.

The EEC system, as any informed person could have predicted, has proved as damaging to the farmers as to the consumers, because it must mean very high prices, artificially maintained, for feeding stuffs.

We have been told repeatedly—we heard it again from the right hon. Gentleman today—in a flood of propaganda in recent months that world food prices are higher than EEC prices. If that were true, nobody ever explained why food prices in the United Kingdom last year rose three times as fast as they did in, for instance, Norway, Sweden and Switzerland. But it never was true except for some exceptional cases like sugar, for which the world price is almost entirely artificial, and grain, where it was due partly to the EEC's export tax on wheat.

Grain is the dominant interest in the present situation. Opposition hon. Members do not seem to have noticed—the right hon. Member for Cambridgeshire certainly did not—that world wheat prices are now falling. The International Wheat Council reported only on 1st May that Daily Telegraph agriculture correspondent—not myself—commenting on this matter on 2nd May, said: Financial Times of 7th May—I do not think there is an edition today—reported: That was 6th May. The report continued:

To take another example, the Economist of 27th April stated: Economist of 4th May, regarding the EEC's beef policy, states:

The right hon. Gentleman has told the House about future wheat prices in the new world. Will he now tell the House when those prices will strike the market in this country and have their effect, because Labour Members opposite have been talking about the present situation in the beef industry? Will he tell us when those prices will be effective?

The price at which this country could buy United States wheat, if there were no EEC restrictions, has already fallen substantially in the last eight weeks. If the right hon. Gentleman does not accept that from me, I suggest that he consults the authorities I have quoted, including the report of the International Wheat Council. The only prudent course for this country is to be free to benefit from lower grain prices. That means freeing ourselves now and for the future from the shackles of the common agricultural policy. It also means that cheaper food is now available in the world outside the EEC if the British consumer is allowed to buy it.

I have just referred to beef. I ask the Minister who is to reply to the debate to tell us whether it is true that the EEC has now reimposed import levies on wheat and other cereals. If all our troubles are due to the high cost of feeding stuffs, it will be interesting to know whether we are paying a tax on imports of feeding stuffs from outside the EEC.

It is certainly true that New Zealand could supply us with food at lower prices than those prevailing within the EEC ringed fence. Some Tory Members, including the right hon. Member for Edinburgh, West (Mr. Stodart), who was in the Ministry in the last Government, have attempted to deny this. But the New Zealand Minister of Trade—he surely should know—when he was in London on 12th March, as reported in the Financial Times of 13th March, said:

In this situation, what are the Common Market authorities doing? They are now building up a beef mountain. Having for a time reduced the butter mountain by huge sales to the Soviet Union at dirt-cheap prices, those hard-worked officials are now busily stacking up a beef mountain in its place. That beef mountain has now reached 75,000 tons, according to a Written Answer given to me by the Minister on 29th April, which Opposition Members can read in HANSARD. At a time when beef prices have been forced up to levels which thousands of British housewives cannot pay, an import tax is now imposed on beef and the EEC intervention boards are buying it up and ran- sacking the Continent for storage space in which to hoard it.

One of the many horrors of the CAP system is that, while the intervention boards are forced to buy at a certain floor price to stop prices falling, there is no maximum price at which they are bound to sell. Some people have not yet grasped that point.

The British Intervention Board, in a Press statement on 18th February, under the régime of the previous Government, put it this way:

However much the right hon. Gentleman dislikes the intervention system, may I ask whether he agrees that it must be wise to plan for plenty rather than for scarcity? He talks of a beef mountain. Is he aware that the figure he has quoted is equivalent to no more than three days' consumption? Is it not prudent to have that much in hand?

There would be no need to have any beef mountain at all if we followed a sensible policy. My right hon. Friend told us today that he has stopped the intervention buying of beef. I warmly applaud him for that. It is the beginning of a commonsense reform of agricultural policy.

I agree with the hon. and learned Member for Montgomery that if we simply abolish the intervention buying of beef and do not restore guaranteed prices, and if we also maintain levies and import restrictions to keep out cheaper feeding stuffs from North America, we cause a crisis in British agriculture. Anybody could have foreseen that.

The only possible solution to this situation is to restore guaranteed prices and deficiency payments and to abolish all restrictions on the free import of wheat, maize and barley into these islands. That is what the interests of both the British farmer and the housewife demand, and nothing but the common agricultural policy stands in the way.

Another damaging effect of the abandonment of guaranteed prices and deficiency prices by the previous administration has been to generate unnecessarily a direct clash between the interests of farmers and consumers. Under guaranteed prices and deficiency payments, that clash did not exist. That was one of the most invaluable elements in that policy. But with the CAP levies and hoarding by intervention boards it must exist, and it is already doing great damage, as the NFU agitation for higher prices clearly shows.

The only solution in the interests of the consumer, the farmer and the whole economic future is to dismantle as quickly as possible—I agree with the hon. and learned Member for Montgomery that the Government have not yet gone far enough—the whole ghastly apparatus of food taxes, restrictions and intervention buying aid, to return to a policy based on free imports, guaranteed prices and deficiency payments. That is what the Government must do if they want to retain the support of the nation.

5.21 p.m.

I had not intended to intervene until I heard the Minister's speech. I know that many hon. Members wish to speak, and I have already made my position clear on the present situation in speeches outside the House. However, after hearing the right hon. Gentleman's speech I felt that I must intervene briefly.

It is a pity that the manifest prejudice of the right hon. Member for Battersea, North (Mr. Jay) towards the Common Market makes him distort the issue to so great an extent. He did so when he occupied the seat that I am now occupying, and he has not changed.

No, I have not. To a degree I commend the right hon. Gentleman's stability of purpose. It is unfortunate that it is in the wrong direction. He talked about grain. Of course the intervention price in Britain is far below the world price, but it is influenced by world prices. The right hon. Gentleman referred to Denmark and Norway. Why does he not relate our position to that of the United States, which is responsive to world conditions and where prices have risen far more than in Britain? The right hon. Gentleman knows, I am certain, that world prices have risen by 77 per cent. during the past three years whereas prices in this country have risen much less than that. World conditions have been the dominant factor that has acted upon Community prices. Although Community prices were higher to start with, in the main that is not now the case.

Does the right hon. Gentleman deny that the world price of grain has fallen steeply in the past eight weeks?

I accept that grain prices have been falling from the earlier high levels. The right hon. Gentleman did not specify the difference between hard and soft wheats. There is a big difference. The price of hard wheat went up to over £100 a ton. That is the type of wheat that has been the subject of steeply falling prices. The price of soft wheat has not fallen nearly as much. The lower prices should improve the position for our livestock producers in the immediate future.

I now turn to the specific point which worries me about the Minister's approach. It seems that he has not come to grips with the matters that are now worrying farmers. I acknowledge that there were problems caused by the enormous explosion of cereal prices that took place last year. There is no doubt that that put a strain on every livestock producer in these islands.

Before the Conservative administration left office we were able to do something substantial to help the milk producer. We were discussing in Europe the beef and pig situation. The settlement following those discussions would have been different from that which the Minister has achieved. We would have agreed to a higher intervention price for beef and we would have stood by our commitment to operate the intervention system. If that had been done, the present degree of alarm and despondency would not have arisen. Of course the farmers would not have been making profits at present, but they would have had confidence for the future. That is what matters.

The Minister seemed totally unable to grasp that point. He talked about intervention and said that he had never liked it. We know that and we accept it. But surely he realises that intervention buying applies not only to meat but to a number of other commodities such as milk products and cereals. Intervention buying is now operating with regard to those commodities.

The present alarm of the farmers is because they have been denied permanent intervention buying for meat. There is alarm and despondency because the farmers do not know where they are. That is the first point that the Minister should clarify.

Secondly, if the right hon. Gentleman is not willing to operate intervention buying he must make a firm forecast of when he will operate a system to support the market. He said today that we must find a better support system for the future, but that is not enough for the farmers. They must know in advance that they have a secure future. If that is not made clear to them, they will not be willing or able to commit themselves. That is the key to the present dissatisfaction. The farmers, having been taken out of the previous system by the previous Conservative Government, with their full understanding, thought that they would get the benefits of the intervention system. The Minister has removed that system without giving a clear indication of what he proposes to do.

I accept that pigmeat was a difficult problem. I indicated that the previous Government intended to seek changes in the monetary compensatory amounts. That would not have cured the problem but it would have put a degree of confidence back into the community. That would have helped to ensure that the pigmeat situation stabilised itself over the coming months.

Those are the two major issues which the right hon. Gentleman should have dealt with on his first visit to Brussels. I accept all the difficulties that confronted him. I know how great they must have been on his first visit. However, he must accept that he made a serious mistake and a serious error of judgment. If he does not accept this, he will never get the confidence of the farming community. That is the nub of the situation. I ask the Minister to recognise that fact. Let him come forward with firm proposals on how he proposes to support the beef and pigmeat markets and to remove some of the doubts that he has put in farmers' minds. Let him do something to restore their confidence. That is the real issue.

I noted what the hon. and learned Member for Montgomery (Mr. Hooson) said. It seemed a strange speech from one who claims to be a spokesman of a party that is committed to membership of the EEC. He reminded me of the way in which the Liberal Party so often tries to have it all ways. If the hon. and learned Gentleman is to face the problems squarely, he must accept that his party must either be committed to the Community system or be against it. He said that having entered the Community we should work to change the system. That is precisely what the previous Government were seeking to do. However, we must seek to change the situation for all the member countries. There cannot be a different system only for Britain.

Does the right hon. Gentleman appreciate that there are many pressures for change within the Common Market? For example, why should the right hon. Gentleman have agreed to the removal of the lime and fertilizer subsidy when he could have continued the subsidy by breaking a technical rule but not risking expulsion from the Common Market?

I shall be happy to deal with that matter on another occasion. I was dealing with meat and the intervention system. It is no good the hon. and learned Gentleman trying to lead me away from those matters. He and his party must face the central issue if they are to be realistic.

I have made the specific points that I wished to raise. I ask the Minister to look at them again and to see whether he can find a secure basis for the farmers' future. If he does not, he will be failing the nation.

5.29 p.m.

Probably, in these peculiar times in which we live, I should preface my remarks by declaring my interest in the agricultural industry. I am a farmer, and I am producing most of the commodities about which I intend to speak. I am sure that there are many hon. Members in the same position.

I was going to say that this debate was timely but I believe that it is now overdue, not only because of the serious economic condition that prevails within the agricultural industry throughout the United Kingdom but because of the important discussions that are going on in Brussels and the importance of agriculture to those discussions. I am sure that those taking part in the discussions need to know the views of the nation on the agricultural problems in our relations with the EEC.

During the past nine months we have witnessed the sad spectacle of a complete loss of confidence by United Kingdom farmers. I regret that for the debate time is limited. I regret it particularly because of the apparent mood of the House and the anxiety which many right hon. and hon. Members have expressed for the future of this very important industry. If this loss of confidence is allowed to continue it will undoubtedly result in lower production and higher prices for the consumer later on. I believe that for bacon and pigmeat higher prices will come later this year, because production is bound to fall as a result of the large numbers of breeding stock which have been slaughtered, not only in Northern Ireland but throughout the United Kingdom.

The trouble is that the United Kingdom agricultural industry has fallen between two stools. We no longer have the United Kingdom support system of deficiency payments, yet we are not receiving the full benefits of the Community's managed market system. As if to rub salt into the wound, this period of transition—which might be more correctly called "indecision"—coincides with the greatest and most rapid increase in production costs the industry has ever known.

From 1969 the United Kingdom system of deficiency payments and production grants maintained the stability and confidence within the industry. Farm incomes were never spectacular. It is fair to say that the average farmer had a lesser return on capital invested than most of those who invested in other industries. Nevertheless, farm incomes were reasonably reliable and prevented the sort of losses which pig and beef producers have suffered recently. The secret of this was that the support bore a relationship to costs. Periods of un- usually rapid rises in costs were dealt with by our special price review system—something which our farmers badly needed last autumn but did not get because, under the terms of entry into the Community, the provisions for special price reviews had disappeared. The result was that, throughout this past winter, farmers, certainly in Northern Ireland, lost money and confidence in very large measure.

The Community approach of trying to manage the market on a nine-country basis through meetings of the Council of Ministers is far too clumsy to meet the particular needs of the member countries, which have widely different problems. This has been especially true during the transitional period following our entry. The arrangements have simply not been designed to cope with our present position, for our costs are as high as those in the original six member countries but our support prices are held down by the transitional arrangements. I believe that it is imperative that the Government should remedy this difficulty as part of their renegotiation of our terms of entry.

I can readily understand the desire of both the present Government and their predecessors to try to get the cheap food which, to an industrial nation like ourselves, is essential to keep the cost of living down and to enable us to be competitive in world markets. Nevertheless, cheap food for the nation from home production, and giving the farmer a fair reward for his labour and capital, are not compatible.

Therefore, something must be done, and if the Government decide to abandon the Community system of making the consumer pay the full price for food, then a system of support for the producers is essential, for otherwise production will fall—and the chances of replacing home production with cheap food from outside are becoming very remote. Most hon. Members, if not all, will agree that the sources of cheap food throughout the world are drying up quickly. Developing nations are picking up the food and it will no longer be available to people like ourselves.

There is another important factor which no responsible Government could ignore—the potential of the agricultural industry in import savings. The farmers' leaders have claimed that the industry has a potential import saving of £750 million a year.

The current problem is particularly serious for the pig and beef producers, and is apparently becoming serious for poultry and egg producers. The subsidy of 50p per score on pigs is to be reduced to 15p in July. I pressed the Minister on this matter because pig production in Northern Ireland is very important to our farmers and to our economy generally. He responded to pressure, both from myself and others, and got permission from the Community to introduce this assistance, but the disturbing point is that the assistance ends in July. I should like to hear from the right hon. Gentleman what follows thereafter.

In Northern Ireland, sales of breeding sows for slaughter have been very heavy. We had in the past about 120,000 breeding sows keeping a population of about 2 million pigs in the Province. Today, that 120,000 has been reduced by 25 per cent., and accordingly our pig throughput is reduced by the same scale.

There is another difficulty—the exploitation which exists between the farm gate and the consumer's table. This is a great problem, and I am sorry that the Secretary of State for Prices and Consumer Protection is not here because, as I understand it from those who have investigated, where I live the bacon pig which leaves the farm at about £30 sells retail over the counter at anything from £65 to £70. There is an enormous gap there which needs to be looked at, and this is one of the great problems in the industry generally, not only as it affects pigs but other commodities.

If the position in Great Britain is anything like the position in Northern Ireland there is bound to be a shortage of bacon and pigmeat in the second half of this year, and that will mean higher prices for the consumer. We must bring this fact home to the Government, who are trying to keep consumer prices stable. Shortages in this country will mean higher prices.

The position of the beef producers is no better than that of the pig producers. The drop in demand for beef, associated with the country's wider economic problems, has prevented market prices from rising sufficiently to cover farmers' increased costs. Most beef farmers have lost substantial sums on their fattening operations this year, particularly those who feed winter beef. The prices of calves have dropped and the confidence of owners of herds has waned substantially. The number of breeding cows sent for sale has been well above the average. This means in turn that supplies of beef in two or three years' time, when demand may well have risen, are likely to be high-priced to the consumer.

The problems I have mentioned are more acute in Northern Ireland than they are in Great Britain. This is because the cost of feeding stuffs in Northern Ireland has increased more than in Great Britain, the reason being partly that under the Community arrangements Northern Ireland's supplies of grain must come largely from England or France, and partly the increases in transport costs due to the rise in oil prices. This is particularly serious for Northern Ireland because about 10 per cent. of our working population is employed on farms compared with only 3 per cent. of the population of Great Britain.

It is also because poultry and pigs, the two main commodities affected by the increase in cereal prices, are the hardest hit. They account for nearly 40 per cent. of our gross agricultural output. In Great Britain the corresponding figure is only about 25 per cent. The production of pigs and poultry provides employment for about 14,000 people in Northern Ire-lard. Some of these jobs are on the farms, some in the processing factories. and some in the supply industries generally. With our high level of unemployment we cannot afford to lose any of these jobs.

My theme is that confidence born of stability is needed. I hope that in determining future policy the Government will not only take steps to restore confidence in United Kingdom agriculture as a whole but will also pay attention to the special problems of Northern Ireland and provide sufficient additional aid to enable Northern Ireland farmers to compete on an equal basis with farmers throughout the United Kingdom.

I have already raised with the Minister the problem of the Exchequer support buying programme for ware potatoes. The right hon. Gentleman will recall that I have raised this on a number of occasions. I understand that he has accepted that in principle this support buying will come into operation. This affects the price at which farmers will be compensated for the loss of their market through the ban on the export of ware potatoes to countries outside the United Kingdom. Producers in my part of the United Kingdom were getting £19 per ton in February last from European sources for a special type of ware potato not suited to the British market. They are of a coarse texture and over many years a market had been built up for them. Because of the Government ban on their export they are held on the farms. We naturally expect that this Exchequer support buying system will come into operation. The Minister has confirmed that. What is important is the price which will be paid in compensation for the potatoes which farmers have on their farms. We have to bear in mind that at this time of the year there are substantial loses in potatoes left lying on the farms.

There is a special problem affecting tomato growers. It arises from the unduly complicated EEC transitional arrangements for compensatory amounts. This problem follows an appeal by the Government of the Irish Republic to the European Court of Justice. It has decided that tomatoes being exported from the Republic of Ireland to the United Kingdom in 1974 should qualify for a compensatory restitution payment of about £85 a ton. This compares with the figure of £27 per ton which, I understand, would have applied if the Government of the Irish Republic had not taken the case to the European Court.

Even a restitution payment of £27 a ton would have given tomato growers in the Irish Republic an unfair advantage over United Kingdom growers. Clearly, a payment of £85 a ton is quite intolerable. If anything, costs in the Republic of Ireland are less than in the United Kingdom. I am sure that they are no greater. There seems to be no sensible reason why growers in the Republic of Ireland should be given this advantage over United Kingdom tomato growers.

The effect of this payment will be particularly serious in Northern Ireland because such a large proportion of our tomatoes are imported from the Irish Republic. Our local Northern Ireland growers are, therefore, much more vulnerable than other United Kingdom growers. We already supply a high proportion of the United Kingdom market compared with the amount supplied by the growers in the Irish Republic. The United Kingdom Government should take steps to nullify the effect of this on all exports from the Irish Republic to the United Kingdom. The case for such action, and the need for it, is particularly strong for Northern Ireland growers.

In my first speech in this House I welcomed the appointment of the Minister to a position which he held in the last Labour administration. I then had the pleasure of establishing a good relationship with him during our discussions about agricultural matters in Northern Ireland. In my first speech here I also made a reference to the contribution made to British agriculture by a former Labour Minister, the late Tom Williams.

I ventured to suggest then that the present Minister might fashion his main policies on those promoted by his illustrious predecessor in the difficult period that faced him in the late 1940s. The late Tom Williams's main contribution to the industry was the confidence that he instilled into it through stability. He faced, and rose to, a massive challenge in 1948. I have no doubt that the right hon. Gentleman can rise to an equal challenge in the even more difficult period through which we are presently passing.

If the Minister can convince his Cabinet colleagues of the value of an efficient and prosperous agricultural industry to the national economy and to our import savings programme, and of its value to the national larder in an era when world supplies of cheap food no longer exist, then he will have made a substantial contribution to the well-being of this country. It is because of my hopes that he will be successful that I have advised my colleagues in the United Ulster Unionist Coalition not to take part in a Division against the Government tonight.

Order. I am reluctant to repeat this injunction to the House, but the right hon. Gentleman has taken 17 minutes to make his speech. Many right hon. and hon. Members want to speak. I must appeal to the House to respond to Mr. Speaker's request for short speeches.

5.48 p.m.

I am sure that the whole House would want to congratulate the hon. Member for Dorset, West (Mr. Spicer) on his maiden speech. Naturally, speaking from this side of the House, I could not agree with all he said, but it was a most interesting speech. I am sure we all hope that the hon. Member has a successful future ahead of him in the political arena.

Although I am by no means a maiden speaker, I have not represented Brigg and Scunthorpe before. It is right that on this occasion I should spend a few seconds recalling that that was the constituency of Lance Mallalieu, who retired at the General Election. He was a Queen's Counsel and had represented Brigg and Scunthorpe since 1948. Before that he was Liberal Member of Parliament for Colne Valley from 1931 to 1935. He was a Church Estates Commissioner and a Chevalier of the Legion of Honour. In addition he served this House with distinction, having been the First Deputy Chairman of Ways and Means since 1973.

Another thing which can be said of Lance Mallalieu, which I am sure would he most valuable in his eyes, was that he was well regarded by his constituents. He was regarded as a gentleman. I am sure that on behalf of this House and his constituents I can wish him well in his retirement and pay tribute to the vast amount of work he did for the House and his constituents over the years.

I turn now to a topic which has not so far been mentioned. I refer to the agricultural worker. There have been brief references, among all the problems that face agriculture, to the fact that the worker ought to be paid rather better than he is. We on this side of the House have made certain pledges and we hope to redeem them as soon as possible. I refer specifically to tied cottages. There is much to be said on this subject. I remember arguing about it with some Tory Members during a recent train journey. I said to them "Can you understand what it is like to live in a dwelling, however good your boss is, knowing that you have no security? Something might occur and you will be asked to leave. You will have no roof over your head." I agree that there are many admirable farmers who look after their workers. Equally, there are bad ones.

I have lived in a village with people who occupied tied cottages, and I know how they felt because they did not have the security of a roof over their heads. Have hon. Gentlemen on the Opposition benches ever lived without the security of a roof over their heads? If they have, they will know what I am talking about. Agricultural tenants should be treated in the same way as everyone else.

Does the hon. Gentleman believe that the tied house system should be abolished for all people who occupy houses that are tied to their jobs, such as the police, schoolmasters and nurses?

I want the agricultural worker who occupies a tied cottage to occupy it on the same terms as any other tenant occupies his dwelling. I want him to have a rent book and the same security of tenure.

Under the new agricultural wages structure a man who has a craftsman's certificate or is recognised as a craftsman can get £25 a week as compared with the basic wage of £21·80. The number of certificates that have been issued is disgracefully small. The total number of regular, whole-time hired agricultural workers in England and Wales is 155,531. The total number of craft certificates issued for the whole of England and Wales is 45,803, and the total number of workers registered is 37,085. In the area of the Lines (Kesteven and Lindsey) Agricultural Wages Committee which covers my constituency, the total number of agricultural workers is 8,644 and the number of certificates issued is 3,966, so that fewer than half have craft certificates, and those figures are among the best in the country. In the Holland area, of the 5,048 agricultural workers employed only a miserable 407 are registered as craftsmen. It is no use farmers saying to me that many workers in this class get more than the basic minimum wage. Even if that is so, there is no reason why they should not be registered as craftsmen. It is vital that they should be registered as craftsmen, because if they need to change their employment the certificate will ensure that they get the craftsman's rate.

Will the hon. Gentleman accept that in Holland one-quarter of the agricultural workers are cutting vegetables and getting up to £70 a week?

I am talking about the total number of regular, whole-time hired workers, which is 5,048. We know that some of them are cutting vegetables. Only 407 of those are classed as skilled agricultural workers. We should not make excuses. The National Farmers' Union does not make excuses; it is concerned about this situation. The NFU, the agricultural workers' union and the Transport and General Workers' Union accept that this is a bad situation.

A person living in a tied cottage does not bound up to his boss and say that he wants a certificate. By the same token, there are honourable farmers whose workers are all certificated because the farmers have taken care to see that they are. There are restraints on agricultural workers who do not have sympathetic employers, but the employers have a responsibility to their labour force to see that certificates are issued.

As I go round the villages I see many tied cottages that are unoccupied and boarded up. It would be interesting if the Minister could institute a survey of the number of uninhabited tied cottages in the villages. The Government might consider giving encouragement to local authorities to buy them and to let them to people who are in desperate need.

Much has been said about the future of agriculture. I accept that there are great problems with pigs and beef. The Minister says that he will consider these problems. I believe him and that he will do something about them. Many hon. Members have said that we should look to the future, but they have not spelt out what should be done. I do not profess to have the complete answer. What has been done for the production of potatoes is interesting. Discussions are held with the NFU about acreages and yields, and production is planned. The Government say what they want and give a guarantee for a certain level of production. Overall that system works very well, apart from the vagaries of the climate. Sometimes we have a good year and sometimes there is a shortfall.

The Government should say that they will look at agriculture as a whole. One attitude that used to be prevalent was for the farmer to say "I will grow what I want to grow on my land, and to hell with everyone else." Nowadays farmers are thinking more about the issues involved. We should look at agriculture as a whole to see what food we want to produce, and the farmers should be told what is required and what are the targets. We could then go forward on a guaranteed system and if more than the target is produced the Government should take the surplus, as is done with potatoes. If there is a shortfall, it becomes necessary to import. Such a system would enable us to establish a stable future for all agricultural produce. People would not then go into pig farming and come out again because the sums had gone wrong.

I never expected to agree with an hon. Member representing a constituency in Northern Ireland, but the right hon. Member for Fermanagh and South Tyrone (Mr. West) made one of the best speeches I have heard and I agree with much of what he said about agriculture. My right hon. Friend the Member for Battersea, North (Mr. Jay) also made an interesting contribution.

The present crisis of confidence comes from our having since 1947 knocked away the underpin of guaranteed and deficiency payments and being caught up in the dreadful common agricultural policy. That is why farmers do not know where they are going. We have had butter mountains and now there are beef mountains. People talk about overproduction and the payments that farmers should get, but what about the poor housewife? She never sees any benefit. If there are guilty people, it is not my right hon. Friend the Minister but the middlemen. Someone is making money. If farmers are not getting the money at the farm rate for their produce and if the housewives are not seeing any reduction in shop prices, it is obvious that somebody is getting a rake-off—and we have a shrewd suspicion who it is.

We must say to those in agriculture, "We want you to produce". Let us go back to a guaranteed system and deficiency payments and let us look at agriculture as a whole. We must say in no uncertain terms what we want from the land.

As for the Common Market, the Conservative Party will have to satisfy farmers about the situation. The Conservatives may vote against the Government tonight—I am all for an election on this issue—but I believe that farmers are beginning to think about the long-term future of agriculture. That future certainly does not lie in the Common Market or in the common agricultural policy. If Labour decides to fight an election on that issue, however hard Conservatives want the CAP to continue, I am sure we shall win it.

6.2 p.m.

I should like to thank you, Mr. Speaker, for allowing me to make my maiden speech on the important subject of agriculture, first because it is a subject dear to my heart, and secondly because I have no wish to be awarded the wooden spoon by "Cross Bencher".

Before I expound the pros and cons of the agriculture industry, I should like to say a few words about my predecessor and my constituency. Sir Fitzroy Maclean served this House, his constituency and his country for 32 years, which is a large slice of a man's life. He first served in Lancaster and came to Bute and North Ayrshire in 1959. I remember as a young man reading "Eastern Approaches" and thinking what an exciting person Sir Fitzroy must be. Never in my wildest dreams did I think that I would follow in his footsteps as a Member of Parliament in the constituency from which he retired. I say quite humbly that it is a large pair of shoes to step into.

Few men who have passed through this House could command such respect as did Sir Fitzroy from Members of all parties. He served his constituency well. He was also a diplomat in the true sense of the word for this country in many places behind the Iron Curtain and in the Eastern Mediterranean. I am sure that even out of Parliament, and irrespective of the party in power, because of his great knowledge in those areas he will continue on those lines. He is a man of honour and integrity, qualities which today one has to go a long way to find. I hope that I can follow his example—that one can be strong in debate without being vicious, and polite without being weak, qualities which many hon. Members could well emulate. I am sure that Members in all parties wish to see Sir Fitzroy enjoy a long and happy retirement in which he may do the things he wants to do and write the books he wants to write.

The constituency which Sir Fitzroy has just left and which I now have the honour to represent is the most beautiful constituency in Britain, lying as it does in the Clyde Estuary, with its famous holiday islands and towns. Perhaps I should say that it was the most beautiful, because both Conservative and Labour Front Benchers have sanctioned an iron ore terminal as the first step to what they hope will be massive industrial areas in Western Scotland. It is being built on some of the best agricultural land in Britain where potatoes are planted in January and are ready in May.

It seems ironical to me to seek to build a jetty for the iron ore terminal in what was the recreation area of the Clyde. A slag heap is being shifted from a steelworks to make a recreation area there. The price of progress has always been the death of the environment, and man has much to answer for in central Scotland in the past hundred years. He has torn the heart out of our countryside and then moved to pastures new, leaving dereliction and devastation—a headstone to our industrial past. Man must learn to reclaim, recycle, regenerate and regrow from the old and not continually destroy the new because it is cheaper and easier.

It must be difficult for hon. Members from the cities to imagine what it is like to have a constituency that is 50 miles long and with islands 12 miles offshore, with large populations on each, and at election times to pack in 50 or 60 meetings in 20 days. There is a tremendous variety within that 50 miles, from heavy industry with ICI in the south, to the nuclear power station, well-planned and laid out, in the middle of the constituency and to the holiday towns in the north and on the islands.

Because of its setting in the Clyde Estuary, it is a popular playground for central Scotland. It has always been my contention that a man and his family should not be penalised because of where they live. But islanders have major problems because of high costs and low incomes, and something must be done to alleviate those problems.

Most of my constituency, including the islands, is taken up with agriculture, and that is what this debate is all about. if the mainland farmers have problems they are nothing to what the islanders have to deal with. For them feedstuffs are £10 per ton dearer because of transport costs, and to sell beef on the mainland costs £5 per beast in transport. The ferry services in most cases are completely inadequate.

I should perhaps declare my interest in that I farm both intensive dairy with beef from the dairy herd and also farm beef cattle and sheep on hill land. Therefore, I know at first hand the present problems in the industry. My grandfather used to say that in his day the clever members of the family went out and became professional men and sent their earnings back to keep the farm running, and the dumb members of the family stayed at home to farm. My father always said that by the middle 1960s farming had become so technical and sophisticated that the clever ones had to stay at home to farm and the dumb ones went to university or became Members of Parliament. I am not sure which of these times we are living in now or where that leaves me as a farming politician.

I remember how angry I was at being called feather-bedded in the early days of subsidies and deficiency payments. How the wheel has turned. I suggest that today, as then, it is the consumer who is being feather-bedded. But I say "Beware", because if farmers do not urgently find some confidence and a better return for their work and investment, there will be grave shortages of milk, beef and pork in this country. With those shortages will come soaring prices, and the feather bed will turn into a bed of nails, as high feed costs cut deep into the housewife's budget.

There is no doubt in my mind that agriculture is and must continue to be the most efficient industry in Britain. The figures are there to prove it over the years. It could not have survived without being efficient. If one has a run-down agricultural industry, one has a run-down country. It has the hardest working men in any industry who, because of poor returns to the farmer, do not get the wage they deserve. But this great industry is at the mercy of the consumer and successive Governments have either brought it to its knees or put it on a pedestal, depending on the situation in the country.

I realise that one should not be too controversial in a maiden speech, but right hon. Gentlemen on both sides of the House have much to answer for over the past 25 years in terms of the agriculture industry. Unfortunately, the cart is always put before the horse in that we decide that the consumer must be protected from high food prices—although we were supposed to be moving away from that idea—and then ways are found, by subsidy or deficiency payments, to give the farmer a return on his capital that no industrialist would stand for.

I have just visited South Africa, Australia and New Zealand to study agriculture and learn from their ways. I learned three things. First, we cannot compare agriculture here and in those countries because of climate, since they tend to farm extensively whereas we are intensive in our methods. Secondly, and more important, there is no longer cheap food in any of these three countries because they have found new markets in South America and the Far East, so that there is no use looking in that direction for cheap food. Thirdly, farmers in this country are not only as good as our competitors abroad but are better in all sections of agriculture. So we must look to our home industry to look after our consumers.

I put it to the House that with world inflation running at its present rate the days of continual food subsidies are numbered because of the astronomical cost this will mean to the taxpayer. Therefore, subsidies should be selective and should help those in need. Britain cannot opt out of world inflation because of our need to import raw materials, but what she can do is to build a strong agriculture industry that can produce its food at a reasonable cost to consumers and a reasonable return to producers and also help our balance of payments. The more we subsidise at present, the further we get from reality and the more painful it is to get back to it. At the end of the day it is the housewife who will suffer.

If we let our agriculture industry run clown any more, we shall have to import high-priced food from abroad. I have not yet met a housewife who was not prepared to pay more for milk, let alone pay less. But, with a rise of £10 per acre for artificial manure since December of last year, the dairy industry already needs another price rise.

It is interesting to note the major part that the dairy industry plays in producing beef. In 1971, home beef production of clean cattle was made up of 1,700,000 from dairy cows and only 800,000 from beef cows. Because of high beef prices, last year many dairy cows were put off and slaughtered and beef cows were put on, with the result that milk output dropped and beef output increased. Then we got consumer resistance blown out of all proportion by Press and television, and protesting housewives became more important than the future of the industry.

It is a sad fact that in 1938 we ate 55 lb. of beef per head of the population. After 30 years of greatly increased standards of living, we now eat 45 lb. of beef per head—a 10-lb. reduction.

Successive Governments have persuaded the industry to absorb its costs and to intensify, which thousands of farmers have done only to find their investments yielding a nil return. Only with real long-term planning can confidence be given back to the industry—the confidence which was there and thriving this time last year. From the heights of expectations for the future of the industry, we have plunged to the depths of despair.

Looking back at costings, it is frightening to see that in October 1972 good quality cattle cubes were £47 a ton. Today they stand at £89 a ton. In October 1972 protein pellets to mix with barley were £58 a ton. In October 1973 they were £117 per ton. During that time milk went up by 3p a gallon, or £30 per cow. A quick calculation will show that feeding went up by about £32 a ton, so that the dairy industry is still not recovering its increased costs.

The attitude of most consumers is that it is just too bad if farmers are losing money as long as there is cheap food. In the end, however, someone has to pay the cost of production to the farmer or it will be the housewife who suffers. There is no doubt that agriculture is the Cinderella industry. Unfortunately it has had to cry wolf so often that perhaps people do not listen any more. If the Government turn a deaf ear this time, there will be untold bankruptcy in the beef and pig industries.

If I may quote an example of which I have personal experience, last September we invested £12,000 in putting up a new building for a hill farm. We put calves in it for which we had been offered £110. We fed them through the winter at a cost of about £38 per head. Last week we sold them to the same buyer for £110 and suffered a loss of about £40 per head.

I hope that the Minister will not turn a deaf ear when I say that the Government must build up confidence urgently by taking positive measures. I am afraid that the extra £10 on the calf subsidy is making no difference. I have sold calves this week for £14 a head for which people were clamouring last year at £45 per head.

I should like to see something done along the lines of the New Zealand rescue operation in the sheep industry three years ago.

If the 4th December returns had been taken into account and farmers with store cattle between the ages of eight and 15 months had been paid £10 per head, the man who is losing so much money selling those store cattle at present would at least have gained something in cash as well as some confidence. It would have been given as a lump sum, like the payment made to the dairy industry.

As it is, I feel that we ought now to have a simplified certification system for fat cattle at the point of slaughter so that some cash injection might be put into the industry. This is what is happening now in Ulster. Here we have no guarantee and no bottom in the market. The industry is in a state of limbo.

We have the invidious position where the British taxpayer contributes to compensatory amounts to encourage surplus. poor-quality foreign meat to depress our market. There is a rumour that some of it comes from areas of Europe with a high incidence of foot-and-mouth disease. I should like the Minister to say whether that is so and to tell us what in his opinion are the chances of the disease being introduced into this country. It would be very serious if that happened.

If we are to have intervention and beef goes into store, it means that breeding cattle can be kept alive and young stock can be allowed to come on. At the moment, unfortunately, breeding cattle and young stock are being killed off. When this situation corrects itself, there will be no cattle and we shall be in a very serious position.

We must have a long-term plan so that each sector in the industry is doing well and running parallel with the others. It is no use the dairy sector booming at the expense of beef or vice versa, or cereals booming at the expense of the livestock sector. This only causes a movement within the industry which further aggravates the situation.

If Governments are to change every three or four years or even more frequently, an expansion policy must be given to the agriculture industry. Only in that way can the industry plan and prosper to give those in it the return they deserve and to give the housewife the food she wants at a reasonable price

6.17 p.m

I realise that it is highly presumptuous of me to congratulate the hon. Member for Bute and North Ayrshire (Mr. Corrie) on his maiden speech since it is only a matter of weeks since I made my own, but it was a good speech, and I doubly congratulate him because it was delivered in a good Scottish accent which is not all that common these days from the Opposition benches.

Various matters raised by the hon. Gentleman affect me in my constituency because his constituency looks across the water at my own. I shall develop some of them later in my speech.

The hon. Gentleman introduced a subject not of a local, West Highland character but one of more international importance when he spoke about consumers. I remind the House of what the right hon. Member for Battersea, North (Mr. Jay) said about the consumer and about the relationship between the consumer and the farmer. What distresses me most in any debate on agriculture is that the interests of the consumer and of the farmer must involve a clash. My party feels that this situation has arisen now in a particularly virulent form mainly because Britain chose to join the Common Market. Today, we have heard a good deal about tampering with Common Market rules. The people whom I represent do not want any tampering with those rules. They want to get out of the Common Market for good.

I agree with the Minister of Agriculture about the system originated in this country in 1947 being one of the finest systems of agricultural support ever to exist in the world. I am sure that the existence of a system of subsidies and deficiency payments was of great help to our farmers. At the same time, however, it was of great help to the consumer.

In an intervention, the hon. Member for Staffordshire, South-West (Mr. Cormack) condemned the Government for giving direct food subsidies to people. I agree with the hon. Gentleman, because the best kind of subsidy helps both sides and the traditional British system allowed for that kind of subsidy.

We hear a great deal of talk about intervention buying. Suddenly it has become important because our farmers face this terrible situation where prices are collapsing. But it is not honest of the Conservative Party to pretend that the present Government are "opting out" of intervention.

In Scotland, intervention buying is almost physically impossible. I doubt very much whether the cold storage and slaughter house capacity exists to carry out a programme of intervention buying. To say that we must have intervention buying now is to deliver a farrago of nonsense, because it simply is not possible.

My main function is to draw attention to the problems of farmers in the West Highlands and I shall be developing some of the points initiated by the hon. Member for Bute and North Ayrshire. The first of these concerns transport. The Labour Government's Transport Act has been one of the great bugbears of farmers in the Highlands. It has increased the difficulties of arranging for cattle floats and other forms of transport.

The main transport problem in the Highlands centres around sea transport. As well as facing the problems from which all farmers suffer, farmers in my constituency and in the west coast areas of Scotland have to bear the penalty of the rate which is now charged on Caledonian-MacBrayne's and MacBrayne's steamers. Over the last four or five years some of those rates have increased by 300 to 400 per cent., and further increases came into effect only this week.

It is not right for any Government, but least of all for a Labour Government, to tolerate a situation in which people who are not rich and who are in some cases just managing to scrape a living, are forced to pay these extra costs. The Secretary of State for Scotland is no longer directly responsible for the Scottish Transport Group and that is a pity. The organisation has been told to operate on a commercial basis with the result that it is run for the benefit of tourists rather than for the benefit of the local inhabitants who work in the area and try to scrape a living out of the ground.

It is only right to say that the previous system by which the Government paid a direct cash subsidy to make up for the losses which MacBrayne's incurred was also a bad system because it encouraged inefficiency. But the present system of providing capital sums only for the building of piers and ships is equally bad because it has resulted in this dramatic increase in fares. Why should we not have a subsidy for which any firm could qualify and based upon the amount of goods, the head of cattle, the number of people and so on that it carried? In the long term let us hope for a situation where these car ferry links are regarded simply as an extension of the roads in the same way that bridges and motorways are regarded elsewhere in the United Kingdom, instead of regarding them as a means of penalising the local people.

I am also concerned about the land itself. I get sick of people—and Labour Members are often guilty of this—claiming that farmers are millionaires because land speculation and inflation have increased the paper value of their land. That increase in value is a millstone around the average farmer's neck. A basic principle recognised throughout the world is that the only efficient system of farming is the one where the man with the land knows that he can pass it on to his son when he dies. The effect of rising land values is now making that principle virtually impossible. We must isolate these people from the problems of land speculation, and change the estate duty laws and capital gains tax provisions so that transfers of lands from father to son and to other members of the family are not subject to heavy taxation where the land is kept in agricultural use.

Another important point concerns the quality of the land. In my constituency the land is largely marginal in character and it requires much money to be spent on it. It requires lime and fertilisers and it is mad for a Government to make it difficult for farmers to keep the land, the country's most important asset, in the best possible condition. It is vital that the lime and fertiliser subsidies should be reintroduced.

My party accepts that if we are to develop our oil resources we must make available areas where the rigs and platforms can be built. I reject, however, that we should permit a proliferation of these developments in the best agricultural land in counties such as Argyll which are blessed—or perhaps cursed—with the deep water and the bays which are essential for the construction of this equipment. The Government must look at the problem carefully. We want not woolly ideas but firm plans about where this construction may take place. We can then be assured that good agricultural land elsewhere is safe and can continue serving its main function.

I hope that every hon. Member appreciates that the most important single industry in Scotland is agriculture. As a Scottish Nationalist I have always regarded the land and the agricultural industry of Scotland as far more important than the oil industry. We are lucky to have a country which could soon become agriculturally self-supporting. However, we shall not reach that state unless this and succeeding Governments are prepared to take up these non-party and common sense points that I have put forward and which are so vitally important

6.27 p.m

I begin by thanking the Minister for being good enough to see me on two occasions to discuss the desperate situation which confronts livestock producers. I saw the right hon. Gentleman a month ago and he was confident then that by May the situation would have resolved itself. In company with all my hon. Friends from Norfolk I again went to see the right hon. Gentleman this morning and I was pleased to find that he was not so confident that all would be well and that no further action was required. I had very much hoped for an announcement by him this afternoon. I share the disappointment of thousands of farmers that he does not feel the time is right to give further help to the pig and beef producers. He is making a serious mistake.

We have suffered from low pig and beef prices before. This has been a problem particularly with pigs where there is naturally a cycle in the system that has been traditionally employed. The depression that has hit the pig producers' prices now is more severe than ever before, however, simply because of the vast increase in grain prices. This trough in the depression will last longer and be much more severe, and I urge the Minister to think again and to offer immediate help.

We have already heard from many hon. Members that our breeding stock is being depleted and that slaughterings are taking place at an alarming rate. This will hit the consumers. It will mean that in a few months' time they will have to pay more than ever before.

In pursuing a cheap food policy in a short term way the Government are doing harm to their own cause and to that of the consumer generally. In the long term the agricultural community must be kept in business. We are sending specialist producers into bankruptcy and as a result prices will become high later and the consumer will lose out on every occasion. Prices to the consumer never fall to quite the same extent as do prices to the producer, but when there are price rises the consumer has to pay the full price. The producer must be kept in business in the long term and the cheapest way to achieve this is to have a steadier price level.

I urge the Minister immediately to help beef and pig producers in the interests of his Government and of the consumers, as well as the producers. I am extremely concerned about the Minister's complacency regarding beef. He says that by giving a calf subsidy all will be well, but figures show that calf slaughterings are now more than double what they were last year—6,500 a week compared with 3,000 a week.

If the Minister thinks about this logically he will realise that by putting on a calf subsidy he will in no way help the producer who is now in serious trouble and will continue to be so for many months ahead. The Minister should consider sympathetically the effect which this disruption of the livestock industry will have on herdsmen. We have heard from the President of the NUAAW of the serious loss of experienced people from our farms. I am sure the Minister realises that this will cause further difficulties in the livestock sector. These experienced people are irreplaceable and it is a tragedy that they are being driven off our farms because of the short-sighted policy which the Government insist on pursuing.

The Minister speaks with two voices. He says one thing when speaking to a conference on the world food situation and another thing in the House On 2nd May he spoke about the serious situation confronting the country but today he is trying to indicate that there is a likelihood of cereal prices falling sufficiently to help producers in the coming weeks. This does not add up. It is a sad reflection on the Minister that he feels that he can say one thing one day and another thing another day.

I draw the attention of the House to the squalid party political manoeuvring which is going on in an attempt to persuade the country that the Government are holding down food prices by massive food subsidies. This is nothing more than a great "con" trick on the whole of the British public. Every person in the country is receiving 1p on milk, 5p per pound on cheese and other subsidies, while at the same time we are all paying more taxes merely to give these subsidies to ourselves. What an idiotic thing to do. How dishonest for the Government to try to deceive people in this way.

We need a completely fresh approach to agriculture. We have for a long time been making mistakes similar to those which we are making today. I believe firmly in our entry into Europe but that does not mean that I believe in everything that has been done under the CAP, which needs drastic change. We could create a position in which the price troughs and other problems could be largely evened out.

The Milk Marketing Board was set up almost 40 years ago and has been extremely successful, apart from occasions when the Government of the day seek to tamper with the milk fund. The Europeans see the value of this and would be interested in instituting something similar in Europe in due course. We should investigate ways and means of having a statutory meat marketing board and a statutory cereals board to get a little more sanity into our agricultural system. The NFU occasionally makes kindly noises in this direction but has never pressed this or previous Governments sufficiently hard to get the idea off the ground, but I hope that it will do so in future and that the Minister will give sympathetic consideration to this suggestion

6.36 p.m

The extent to which the British consumer relies on British agriculture becomes increasingly obvious while listening to the debate. I am pleased that the debate underlines this point, and that people are beginning to realise the major rôle played by agriculture in this country.

First, I shall deal with some of the problems of the livestock section of the industry, initially those concerned with beef, pigs and dairy farming. With more than three-quarters in value of the agricultural output and considerably more than three-quarters in numbers of farms and farmers involved, the livestock and livestock product section is the mainstay of British agriculture, and my constituency in North Yorkshire is typical of this broad picture of the national farm.

I know from meetings with farmers and others that there is grave disquiet in this section of the industry. Livestock farmers have been hit badly by inflation and the continuing, relentless rise in the costs of their inputs, particularly feeding stuffs. These increases have been occurring against a more or less static price for their finished products. Even dairy farmers are at present barely able to cover their costs.

Pig producers in my constituency have given me information and data which show that they are losing between £2 and £3 on every pig they take to market. Producers of fat cattle are losing between £20 and £30 on every fat beast marketed. With the intervention price for beef considerably in doubt, if not abandoned, and the old guaranteed price wholly inadequate, is it to be wondered that at present livestock farmers' confidence is at a low ebb. This situation cannot be allowed to continue.

One cause of lack of confidence is uncertainty regarding present agricultural policy. The livestock farmer does not know where he stands. Is he subject to the CAP or not? If not, what effective, adequate floor is there to his price structure to replace the intervention price machinery of the EEC policy? There is also uncertainty about future agricultural policy. There is a strong feeling that in the absence of a clear prices policy for the future, the only avenue open to the livestock farmer is to run down his stock. This is a very serious move and should be treated seriously.

Many farmers have told me that any ideas they may have had of expansion are no longer realistic and have been abandoned. If decisions of this kind are being implemented, they could have serious consequences for the whole future of British agriculture and for the security of the future supplies of food for the British housewife and consumer. The risks involved for the housewife and the security of her food supplies are underlined by the production figures and the contribution of British agriculture in this regard.

The British livestock and livestock products industry produces for the home market about 6 lbs of beef and veal out of every 7 lbs consumed, 1 lb of butter in every 4 lbs and 2 lbs of cheese in every 3 lbs. Any major cutback in production therefore on figures of this size could have dire consequences for the housewife and the consumer. The figures also underline how much the housewife has to gain from ensuring that British agriculture is prosperous and buoyant and can look forward to a decent future. I urge the Minister and the Government to consider these matters urgently.

The arable side is important nationally because it accounts for nearly a quarter of the total agricultural output by value. It is also important in my constituency. The arable side is now sensitive on two counts. First, the extra costs of inputs are now beginning to bite. Arable farmers can foresee that any significant drop in demand and hence in price could hit them hard if they had to rely on the guaranteed price. This arises because the guaranteed price in relation to the costs of production currently being incurred and recently incurred is entirely inadequate and offers no protection against substantial losses.

Second, the livestock side is the barometer for the arable side. Arable farmers foresee a drop in demand for the livestock side and as a result are much less confident of their future than they were in the recent past. I would therefore ask the Minister closely to monitor the market prices and the guaranteed prices in relation to the known costs of production of the arable farmer and to keep the guarantees under continuous and constant review.

Finally, I would ask the Minister to state clearly his policy towards British agriculture, particularly in the livestock sector, which is the area of most difficulty. In doing so, he should aim at achieving two things. First, he should give the farmer an adequate return on his labour and product, and thereby protect the domestic consumer's source of supply and the wages and standard of living of the agricultural workers. Second, he should show by his actions that this Government are not trying to exploit the politically weak minority of farmers and farm workers in any vicarious cheap food vote-catching exercise. That is doomed to failure.

6.44 p.m.

The hon. Member for Thirsk and Malton (Mr. Spence) made what sounded like a more temperate speech than those which pre- ceded it. A good deal of heat has been engendered in this debate. I regretted some of the more extravagant language used by the right hon. Member for Cambridgeshire (Mr. Pym). The problems which face agriculture are largely the result of external factors. I remember that, in the last Parliament, farmers were calling for Government action, but nothing was done to help them—[HON. MEMBERS: "0h."] I shall develop the theme as I proceed. If hon. Members wish to reply when they make their speeches, they are welcome to do so.

This week's British Farmer and Stockbreeder starts very fairly in its opinion column with these words:

They must concede that they were not calling for debates on agriculture last year, nor battling at Question Time. The costs of both feeding stuffs and fertilisers were soaring to unprecedented heights. Indeed, it was left to me to initiate the only substantial agricultural debate, on the Adjournment, on 28th November last. So hon. Members must take into account their own performance when their Government were in office. I claim no particular credit for having initiated that debate. I was voicing the views and apprehensions of the farmers in my constituency and other parts of Wales.

Let us remember also that when the price review was announced during the election, although it gave some help to the milk producer—in fact, it barely covered his costs—it did nothing to help livestock producers. I met, as I am sure did other hon. Members, farmers in my constituency and other places during the election, and I found this to be their criticism of the review at the time. It is wrong and unfair therefore to charge the Minister with total responsibility for the present problem. He inherited it.

Would the right hon. Gentleman comment then on his party's decision in the last Parliament, supported by some of my hon. Friends, to agree to ban the export of live animals, which severely hit the livestock market and producer?

The hon. Member knows that the report on that subject is now being considered by my right hon. Friend. But the action was taken by his right hon. Friend. I have long wondered in what kind of cloud cuckoo land the hon. Member lives. It is remarkable how hon. Members Opposite can behave as though they have been out of office for years!.

But endless recrimination does not help the industry or add to the value of our debates. The central fact which we must keep in mind is that farm costs in 1973–74 were over £800 million. To keep that in perspective, may I remind hon. Members that farm costs during my last review in 1970 were £62 million—a rise of about £740 million in the industry's costs in four short years.

No one doubts that our agriculture is very efficient. In certain major respects it is the most efficient in the world. That efficiency was built on the foundation of the 1947 and 1957 Acts. We were able to operate a sophisticated and sensitive system of checks and balances. There were difficulties from time to time, as I well know to my cost. These were due mainly to financial stringency. There was the perennial tug of war between the Treasury and the Ministry of Agriculture, which every post-war Minister of Agriculture—except Tom Williams—has experienced. Although Tom Williams was an outstanding Minister of Agriculture, we should bear in mind that he was operating in a climate that was very different from that in which subsequent Ministers of Agriculture have worked.

It certainly was not and is not easy for Ministers of Agriculture. Three bad harvests in a row can make for misery; three good harvests can make for joy. I had three very bad harvests. It was the right hon. Member for Lowestoft (Mr. Prior) who claimed that Divine Providence had brought the good weather that he enjoyed after I had left office. Unfortunately, the rain in this case did not fall on the just and the unjust alike.

The industry has made remarkable progress since the war because it was ready to adapt and take advice. We should pay a tribute to the work that the NAAS and the ADAS have done in the last 28 years. The industry also succeeded because it was ready to mechanise and to work hard. Farmers are among the hardest working people in the community. If anyone doubts that, he should spend a day with a father and son who are farming a 100-acre farm in my constituency in Anglesey. If they are not getting an economic return for their investment they are in serious trouble. Small farmers and young farmers, in particular, who built new premises on the advice of the ADAS in the last few years and borrowed money for the purpose can be gravely embarrassed if prices fall below the level of costs.

Again in fairness to my right hon. Friend the Minister, the package that he negotiated in Brussels was widely welcomed when he announced it. We should not now decry the benefits that it contained. The words used by the right hon. Member for Cambridgeshire (Mr. Pym) when he asked a supplementary question of my right hon. Friend on 25th March were very different from his comments today. The provisions helped the pig producer, and they will help beef, especially in the long term.

But the recurring problem is costs, and I must return to that. We are in danger of moving, to European-size costs without European prices. My right hon. Friend cannot be blamed for that because it was the Conservative Party which negotiated entry into the Common Market and declared itself satisfied with the common agricultural policy as it was at the time

I think that the right hon. Gentleman will agree that the Labour Party, when in Government before 1970, also accepted that the CAP could be adjusted only when we were in the Common Market

I will not dissent from what the right hon. Gentleman said, but what he must recognise is that the Labour Government in 1969 were preparing the case but never had the opportunity to negotiate the terms. It was the Conservative Government who negotiated entry, and in this respect they made a bad bargain. Part of that bad bargain was the unreserved acceptance of the CAP as it was on 1st January 1972. Lest anyone might charge me with inconsistency, I may add that I made my own criticisms from that Dispatch Box when the previous Government were negotiating entry.

I turn to the question of beef. The House will agree that all the pundits have gone wrong on this matter and that all the predictions have gone awry. Who would have predicted a year or two ago that there would be a large beef surplus in cold store now?

I think that there is only two to three days' supply in cold store at present throughout the nine countries of the EEC. Surely that is not an excessive amount

I was under the impression that there was about 80,000 tons of beef in cold store in the Community. But I believe, as my right hon. Friend has said, that a large surplus in cold store is fundamentally undesirable. I have some sympathy with my right hon. Friend's attitude, therefore, to the question of intervention. We probably need for beef something along the lines of the Milk Marketing Board. Whatever criticisms may be made of the board, it is probably the most successful modern agricultural organisation, and the Common Market would do well to learn from its experience.

At present, our livestock farmers are suffering a loss on the fat animals that they are marketing. We have heard the figures of the increased costs—about £30 on average per animal. Against those figures we have the rise in the guide price of £17·49 per live cwt, when more than £20 would be needed to cover the costs. It seems to me that this is the nub of the present problem concerning beef.

I know that my right hon. Friend is a great believer in expansion. I understand that he is discussing long-term prospects for every commodity with the industry and I welcome that. This is vital because farmers need to plan ahead and also to know that the necessary resources will be available for them. That of course was the strength of the old system. I recall the right hon. Member for Lowestoft saying, in one of his first speeches as Minister of Agriculture, that he was making it possible for farmers to stand on their own two feet. One of the great mistakes that the Conservative Party made was to announce that it was abandoning guaranteed prices before it started negotiations to enter the Common Market.

Now, beef prices are hardening a little this week, and that will help. But I should like the Minister who replies to the debate to indicate for how long he thinks that this will last. The danger is that it will last only until the beef begins to come off grass later.

Against this background of uncertainty, I would make a suggestion to my right hon. Friend. I am glad that he has promised to watch developments very carefully. I should like him to consider certification now. I appreciate his difficulties and I know that it is virtually impossible to make a precise calculation of what it might cost, but I feel that if he started the certification procedure now. it would inject the necessary confidence into the industry. I go so far as to say that the very act of introducing certification is more important than the level at which it might be fixed. The injection of security is even more important than the arithmetic. A small investment now would pay dividends next year. We should also remember that certification need not necessarily be for more than a few months, that is, until renegotiations with the Eight are completed.

We have heard a great deal about problems relating to pigs and poultry, and I shall not therefore go into detail about them. In Brussels my right hon. Friend again helped the pig producer. I ask him to watch prices very carefully and, if necessary, to extend payments at the higher level beyond May, as may be necessary.

Furthermore, my right hon. Friend might well consider doing something about fertilisers. The cost of fertilisers has risen in 12 months from £39 to £80 a ton. I am an exponent of the use of a subsidy on fertilisers, for the simple reason that it helps farmers in almost every sector of the industry. It is an effective way of aiding the industry quickly.

I end on this cautionary note. I appeal to those right hon. and hon. Members who are contemplating dividing the House tonight. This Government have been in office for little over two months. My right hon. Friend, as every reasonable hon. Member would agree, inherited an extremely difficult situation. A good part of the difficulty, escalating costs, was not the fault of the last administration. Hon. Members opposite will agree that they would have wished their own Government to have done more for the livestock producer. But now they talk about dividing the House after my right hon. Friend has had responsibility for about nine weeks.

The Minister went to Brussels and had a very difficult task, which in all the circumstances, he tackled effectively. All of us in the House believe that an expanding, efficient agriculture is absolutely essential to the country's future prosperity. In my view, it is more essential than North Sea oil, however important that may be. I believe that our farmers can compete with any community of farmers in the world, given equal terms.

We in this House must be careful not to divide the nation into farmers and the rest, or into farmers and consumers. I say this with great respect to hon. Members opposite, because I know that many of them represent farming communities. Let them not try to give the impression that the Tory Party is the farmers' party and that this party is the consumers' party. It would be bad for agriculture and it is not true, because the performance of Labour Governments since 1945 in agriculture has been uniformly constructive from Tom Williams onwards.

I hope that the hon. Member for Stratford-on-Avon (Mr. Maude) will not widen the gulf because it would be an extremely dangerous thing to do. After the many years he has been in the House—I respect him—I hope that he will not by anything he says create a new division in this country and stimulate a panic which can gain momentum.

The Government are rightly taking strict measures to fight inflation, and the limited food subsidies are designed to help in this battle. These are not a weapon to undermine agriculture. They are a necessary and a very difficult short-term measure. It is very easy to criticise food subsidies. I do not think that anybody really likes them as a device. I certainly do not. But as an attempt to hold inflation at this time, they are a justifiable measure.

I wish both my right hon. Friends who are responsible for agriculture and food well in the efforts they are making. They must know that a healthy British agriculture is a far more potent weapon to restore our economy in the longer term. Let us therefore give it all encouragement and let us give my right hon. Friend support in his difficult task as well.

7.4 p.m.

I am grateful for this opportunity to make my maiden speech, Mr. Deputy Speaker. It is, in a sense, a double maiden, because my constituency is also making its first appearance. It is the new constituency of Braintree in Essex. Like many hon. Members representing new constituencies I fear that this means that I have an inordinate number of predecessors—namely, three, two of whom, happily, are still with us.

One of my predecessors is my hon. Friend the Member for Saffron Walden (Mr. Kirk), from whom I inherited a very small part of my constituency, and one that is very agreeable geographically and very acceptable politically. The second of my predecessors is my hon. Friend the Member for Chelmsford (Mr. St. John-Stevas), from whom I inherited a substantial part of the northern part of the Chelmsford Rural District. The best tribute I can pay to both my hon. Friends parts of whose constituencies I have taken is to mention the obvious reluctance of their former constituents to be wrested from them. I leave to the imagination of hon. Members the problems of posing on a doorstep as an adequate substitute for my hon. Friend the Member for Chelmsford.

My third predecessor was Brian Harrison, who for 19 years held the previous Maldon constituency which accounts for rather over half of my present Braintree constituency. I know that Brian Harrison was held in high esteem in the House and I know from people I have met and spoken to over a long period in the Braintree area that he was held in high esteem there. He is missed there, as I am sure that he is missed in the House. I am happy to have an opportunity to pay a tribute to him today.

Given that you, Mr. Speaker, have, quite rightly, asked us to be brief, I will say at once, as many maiden speakers say, that I have a particularly beautiful constituency. It is also a particularly interesting constituency which is a microcosm of the South-East. We have Greater London Council overspill estates, we have large new private housing estates, we have many towns and villages of ancient origin. Some of them, including our main towns of Braintree and Witham, are growing very rapidly and facing the problems which come with such growth. We have one of the best known and most beautiful villages in Essex at Finchingfield, which will be well known to many hon. Members and which now has the double yellow lines which go with such fame. The constituency is a very pleasant part of the country. I have known it all my life. It is interesting to the sociologist and it is interesting politically. I am very proud to have had the opportunity to become its first Member of Parliament.

I would have said, had it not been for this debate, that in the constituency there is an interesting mix of light industry, office employment, a large number of commuters to London, and also a flourishing agriculture. Indeed, over a period agriculture there has flourished. Also in the constituency we have the Writtle Agricultural College which is well known throughout the country for the contribution it has made to education in the industry.

The fact is that it is less easy for me to say today that agriculture in my constituency is flourishing. In common with the industry in the constituencies of other hon. Members who have spoken today it is suffering from the grave problems which have now been mentioned by almost every speaker in the debate. If anybody had suggested to me even two months ago, let alone two years ago, that I would make my first speech in the House on the subject of agriculture—a subject of which I then knew very little, for I am not a farmer—I would have said that it would be unlikely. It is a measure of my concern at what I have found in the past two months as Member of Parliament and in the weeks and years before that as candidate and prospective candidate that I have chosen and wished to make a speech in this debate..

I say to the right hon. Member for Anglesey (Mr. Hughes) that, far from wanting to present the situation as if we on this side of the House were the farmers' party and hon. Members opposite were in the consumers' party, it is precisely because I am worried, not only about the farmers in my constituency, but also and at least to an equal extent about the housewives in my constituency and the damage that is being done to their interests by the policies which are being pursued by the Labour Government, that I wanted to speak today.

Anybody who believes seriously that this debate is only about agriculture and is only in defence of farmers' interests needs to think again I am not sure that when the proposed subject of the debate was listed on the Order Paper at the instance of my right hon. Friends it should not have been, instead of agriculture, the interests of food consumers. That is what we are talking about, as many hon. Members have stressed.

I am not a farmer. I will not add to the stream of statistics that we have heard today. The facts that have been given speak for themselves—for example, those given by my right hon. Friend the Member for Cambridgeshire (Mr. Pym).

At lunchtime today I heard that two more farmers in my area had gone out of business and that an establishment with 200 sows is now losing £150 per week. No doubt hon. Members on both sides of the House who have farming constituents could multiply those stories.

There is not only a loss of confidence, but a growing and alarming degree of bitterness in the farming community. I have heard farmers welcome the prospect of the food shortage that they foresee. The only way that they see themselves getting fair treatment is, as it were, by force majeure because of the prospects that they expect. I do not endorse those sentiments, but it is distressing and alarming that men of goodwill in the farming industry should be put in a situation where such feelings are expressed.

A maiden speech is supposed to be non-controversial. I shall do my best, but the Minister does not always make it easy for hon. Members on this side of the House to be non-controversial. Yet it ought to be possible. We all agree that it is vital, in the interests of this country and of our balance of payments, to grow the maximum amount of food at home. Indeed, a speech made by the right hon. Gentleman only last week has been quoted in which he himself accepted that there is a world shortage of food and that we need to do everything possible to ensure that our home food production is increased. I think that we can also agree, wholly non-controversially, that the risk at the moment is the danger of damage to the housewives' interests, of which I spoke earlier.

What do we need to do? Most of what is needed has been mentioned in the debate and I should like to add my voice to what has been said.

It seems to me that the first essential psychological requirement is to end the pretence that the problems are not there at all, that they are about to go away, and that everyone is worrying too much. That does not calm the farming industry. It deepens the loss of confidence and confirms the view that there is no understanding of what is going on.

We understand the Minister's difficulties in view of the commitments in the Labour Party's manifesto. However, if he would acknowledge the difficulties facing the industry in terms that it can recognise that would go a long way in helping to begin the climb back to confidence. It is all very well to talk of a strategy for the long term, but the industry will not have the confidence needed for such a strategy unless something is done to stop the decline that is now going on. The problem in agriculture—and we have seen it in other industries over the years, because agriculture is not in this sense unique—is that if confidence falls below a certain level it takes years to get back to the stage at which expansion can take place. That is my judgment of the situation as a layman, not as a farmer.

The steps are clear. We need a floor to the beef market. We need further action on the pig subsidy, which has proved inadequate. In my part of the country we need to look at the potato situation because there is a heavy surplus in Essex and East Anglia. We need to consider the sugar beet industry. We may be facing shortfalls in the supply of Commonwealth sugar. Therefore, we need to ensure that our sugar beet industry gets the advantage of filling the gap. We do not need further imports from Europe at the expense of our own industry.

Above all, the industry needs a promise of stability. That has not been held out at the moment. I do not particularly want to enter the great argument about the common agricultural policy and the previous support system. We sometimes hear, and have heard today, arguments which suggest there were never any problems under the support system of deficiency payments and guaranteed prices, but it is less than four years since the incoming Conservative Government had to introduce an emergency interim review to rescue the industry under that system.

I do not know whether the era of cheap food has disappeared to the extent suggested by some hon. Members or whether the situation will ease a little. The best guess that has been put to me is that we are in for a situation not of continued escalation on the scale that we have witnessed recently but one in which there will be greater fluctuation around higher price levels. It is the fluctuation that will cause the greatest damage to the farming industry and it is with that that we must cope.

My guess, from what I know about the situation, having been to Brussels and spoken to people in the Commission only a week or two ago, is that the basic machinery of the common agricultural policy is better equipped than the old system to deal with the kind of problems that we will face in future. That does not mean that it does not require change and improvement. We all agree about that. The people in the Commission agree about that. There is no argument on that matter, but we must accept that we are fooling ourselves, the House and the country if we believe that somehow the common agricultural policy is the great villain of the piece and that if we get out of that everything will be all right for the British farming industry and the housewife. That is not true.

If we are not careful we shall build up collectively—I am not trying to make points across the Floor of the House—a situation in which we lead the British people to believe that we can achieve what we cannot achieve. If we do that we shall succeed only in feeding the political disillusionment which hon. Members found was one of the most disturbing features of the General Election campaign.

I hope that we shall have soon from the Minister something rather firmer, more definite and clear cut in his commitments to the industry, which will give the industry the genuine hope and confidence that it requires. I speak not just for the farmers' party, as it has been called, but for all my constituents, and, above all, for the housewives who have an interest in supplies of food at a reasonable price for a long period ahead. They do not want to be sold something that seems quick and easy but leads to worse problems in future. They want stability and confidence. Their interests may differ in the very short term, but not in the medium and long term. The farmers also share those interests. The Government have not yet fully accepted that situation. I hope that when the Minister speaks again he will be able to give us something far more encouraging than we heard from him today.

On a point of order, Mr. Speaker. I apologise for interrupting the debate on this point of order. May I draw attention to the fact that there has been a certain amount of selection? I am not complaining, but may I ask whether we are setting a precedent this afternoon? I have sat in the Chamber on many occasions—for example, during coal mining debates—with great frustration as the Chair has chosen Members from one side and then the other. I am not going through that experience this afternoon. Indeed, the reverse is taking place. I wonder whether I may ask you to comment on the situation.

I am prepared to do that. The hon. Gentleman is not being quite fair to me. I have carefully adopted this procedure. I recall particularly a debate in the last Parliament on the steel industry when many Members of the then Opposition rather than Members on the Government side wanted to speak. I adopted then the pattern which I am following today. In fact, I was proposing to call the hon. Gentleman next. What he has said will not deter me.

7.18 p.m.

The House has just heard a notable, balanced, and realistic maiden speech by my hon. Friend the Member for Braintree (Mr. Newton). I am sure that it will long be remembered. We hope to hear him speak on many occasions in future.

My hon. Friend paid tribute to three predecessors. There can be few hon. Members who have three predecessors to thank at the same time. I hope that he will not have a successor for a very long time. I congratulate my hon. Friend, as I am sure other hon. Members will later.

This has been one of the best agriculture debates for many years in a number of respects. Many hon. Members who have taken part in the debate have spoken, some of them in maiden speeches, with practical experience of the industry. That is important.

I found the Minister's speech disappointing. He said that he would watch the situation carefully. That was exactly what he said two months ago in answer to letters from many hon. Members, including myself. All I say is that a watched pot never boils. I should like the right hon. Gentleman to do something instead of watching.

The Minister said that he intended to get together with representatives of the industry and work out a long-term policy for agriculture. Some of us have been in this House for many years and we can remember other Ministers of Agriculture saying those very words. Any Minister of Agriculture is in continual contact with the leaders of the industry. That goes on the whole time. Therefore, the present Government cannot be in any doubt about the feeling of farmers and the feelings of their leaders.

I am not against talks of that sort. We all wish to have a long-term policy for agriculture. I remember the right hon. Member for Anglesey (Mr. Hughes) announcing just such a policy. I point out to the House, and particularly to the right hon. Member for Anglesey, that there is no point in having long-term discussions with the farmers' leaders unless there is Treasury approval. Without such approval it is a waste of time. It is the Treasury that will decide whether the money will be forthcoming for an expansion policy for British agriculture. The right hon. Member for Anglesey, with the best will in the world and as honest a man as he is, once said that he wanted such expansion. In my view he was totally let down by his Treasury colleagues.

I agree that planning is of no use without resources, but the right hon. Gentleman should recall that the selective expansion programme for which I had some responsibility achieved considerable success, for example, in the growth of the beef herd, for which the Conservative Party has often mistakenly taken credit. The right hon. Gentleman should not forget that.

I should not like to take any credit from the right hon. Gentleman, except to say that he would be unwise and unfair, which he never is, to take credit from my right hon. Friends, who from 1970 to the middle of 1973 gave British farming the best period it had had since the war. Once the industry was hit by rising feedingstuff prices, difficulties arose which the previous Government faced and which the present Government are now facing.

The debate has centred upon the point that the Minister has taken away the platform of the intervention price. That is why the beef sector is in such appalling straits today. It is no good the right hon. Member for Anglesey saying that it is picking up. I telephoned my constituency today. Hereford is one of the three largest beef markets in the country, as my hon. Friend the Member for Leominster (Mr. Temple-Morris) well knows.

The right hon. Gentleman must not misquote me. The House will recall that I accepted that there was a problem. All I said was that prices were firming up a little this week and that I did not know how long that trend would continue.

With respect to the right hon. Gentleman, I do not know what the prices were like at Llangefni last week or this week, but in Hereford they were not better. The position in Hereford was that the very best fat animals—that is, clean animals—were fetching £19·50 per cwt. A year ago they were fetching £22·50. That is the problem and that is what the industry's leaders have been saying to the right hon. Gentleman and his colleagues. They have said that £22·50 for such animals would be a reasonable price.

It is no good expecting producers in England, Scotland or Wales to go on producing at a loss. They will not do it. The result will be that consumers will suffer. I think there is a recognition in the House today that the interests of the consumer and the producer have never been closer.

I return to the question of getting rid of intervention. I think that my hon. Friend the Member for Derbyshire. West (Mr. Scott-Hopkins) was right when he argued with the right hon. Member for Anglesey that it was no good saying there is a mountain of meat. There is no such mountain. That cannot be why the Minister has done away with intervention. It is about time he produced something which will bring back confidence into the industry. My hon. Friend the Member for Braintree referred to confidence. It is no good the Minister saying, as he did on television on 26th April, that farmers are panicking needlessly. They are merely saying that the Minister's beef policy is leading to disaster for the industry and for the consumer. Until the Minister can rid himself of the influences of Consumer and Treasury Ministers and can consider the long-term and not the short-term view, which is what the Government are doing, we shall be getting nowhere very quickly.

7.27 p.m.

On the question of my point of order, Mr. Speaker, I was not seeking to imply that you were unfair in your selection. Your practice this afternoon is not something with which I or most of the House would disagree. On occasions when there is a preponderance of interests on one side of the House on a subject which sometimes is non-controversial it is a fair method of selection.

I represent a constituency which makes remarkably good use of its land. The miners dig the coal underneath and the farmers work on top. While in terms of statistics it is preponderantly a mining constituency, I have a large agricultural interest. Of the 700 square miles of my constituency, a great deal of it is taken up by farmers and farm workers.

On occasions in the past I have thought that the National Farmers' Union has cried wolf. In the past year I have had many conversations with farmers and it has come through to me clearly that the cry on this occasion is not a cry of wolf. There is a genuine cry of anxiety from the working farmers. It would take a great deal to persuade me that the farmers represented, for example, by the right hon. Member for Kinross and West Perthshire (Sir A. Douglas-Home) are under enormous financial pressure. However, I can be persuaded reasonably easily, following the facts that have been put before me, that the working farmer is under enormous pressure.

The industry is facing a genuine and serious problem. It faced it a long time before the present Government came to office. I cannot accept the proposition that in the past eight or nine weeks the situation has been transformed from one of optimism to one of pessimism. The crisis and its underlying elements were in existence a long time before the General Election. The farmers' anxiety did not appear with the price review.

One of the most interesting meetings that I have had since the election was with a branch of the NFU at Cumnock. Those present were lashing into me pointing out that the price review did not meet their needs and the circumstances of those in their area. That was a Tory price review. Indeed, the briefing note sent out by the National Farmers' Union of England today pays particular attention to the fertiliser and lime subsidies, and says that their abolition

Farming is no different from any other industry. The confidence factor is all-important. If it is missing, something goes wrong with the investment decisions. The Scottish Members were lobbied by the Scottish National Farmers' Union yesterday. One farmer put it clearly to me that it takes only five minutes to slaughter cattle but a great deal longer to build up a herd again. I know that animal feed and fertiliser costs have risen enormously, which has pushed up production costs, and beef and milk producers are facing a genuine crisis of confidence which, if it is allowed to develop, will jeopardise future production, which will affect not only farmers but every man, woman and child in the country.

It is necessary on the livestock side to inject additional support, particularly for beef and milk, although there may be arguments for other commodities. This would go a long way to restoring confidence and securing the necessary expansion which is the only guarantee of future supplies from the domestic market. But I part company from many hon. Members on where the money which should be injected as additional capital is to come from. I would not like to see it come from the consumer's purse at the end of the day. I do not believe that we can afford to have this happen, given the inflationary situation. I believe that the injection must come from Treasury sources at the end of the day, and I accept all the implications involved for taxation rates in making that assertion.

I hope that those farmers who are not in beef or milk but in grain also would accept the taxation implications involved in the policy that I am advocating. All the arguments today in the House have been about problems facing the livestock industry, but my information is that the grain sector has been doing very well. I suggest to my right hon. Friend the Secretary of State for Scotland that there may be a good case for examining how we can give selective subsidies in the agricultural industry in relation to people's needs in financial terms. We often do not hesitate to lecture on the need for selectivity when handing out money to a woman with two children whose husband has died or run away, but we never dream of arguing for selectivity when talking about public handouts to the agricultural industry or other industries.

What I have said so far has been a general statement in support of additional aid to the farming industry. I now draw my right hon. Friend's attention to the problems of the uplands milk producers. I wonder whether Governments are aware that each award made under the annual price review has a different effect in different areas. There are parts of Scotland, for example, where cattle in milk production can be put out to grass very early, whereas, in upland parts of my constituency, winter lasts about five and a half months, so that cattle are inside and are then being fed at the highest point of production costs. When an award is made, it might seem very fine on paper and in some parts of the country, but it does not meet all needs, particularly in upland parts, where it has only a partial beneficial effect.

I want to raise also the question of wool prices, which has been put to me by some of my constituents. I understand that there is a financial agreement between the industry and the Government covering the period 1965 to 1975, and that we have worked our way down now to the point where about £7·8 million is to be paid back by the industry to the Treasury. Arguments have been put by farmers in my constituency, and one letter to me states:

I have listened carefully to a number of very good speeches today. The hon. Member for Braintree (Mr. Newton) made one of the most confident and lucid maiden speeches it has been my privilege to hear. I did not agree with every word he said, but I shall make a point of coming into the Chamber to listen to him when he speaks in future.

A number of hon. Members have said that they do not think that the annual price review mechanism is the way to handle this large and important industry, and I tend to agree. I would prefer to see a five-year review with certain means of adjustment built in year by year to take account of marginal factors. The annual price review is not an annual review in practice. First there is the negotiating period and then comes the immediate aftermath, so that probably the industry has only about seven months in the year in which it is free from detailed negotiation. I do not think that this is the most appropriate way to run the agricultural industry, and I should be grateful if my right hon. Friends would take this into account in assessing future Government policy.

7.37 p.m.

I thought that the hon. Member for South Ayrshire (Mr. Sillars) went to the centre of the problem when he said that it takes only five minutes to slaughter cattle but a long time to build up a herd. That is what the debate is all about.

I join those who have praised the three outstanding maiden speeches we have heard today. I agree with the hon. Gentleman about the quality of the speech made by my hon. Friend the Member for Braintree (Mr. Newton). I must also express regret, although I recognise that the Welsh Grand Committee has been meeting upstairs, that not one of the three Welsh Ministers has been able to put in even a brief appearance here for the debate. The Secretary of State for Wales shares responsibility for agriculture, and he or one of his Ministers might at least have shown a sign of interest by putting in an appearance.

I shall speak only briefly, not because agriculture is unimportant but because the situation is so stark that few words are needed to describe it. The Pembrokeshire county secretary of the National Farmers' Union of Wales wrote to me this week: NFU branch. This demanded that a realistic guaranteed price system or intervention buying programme be implemented forthwith. It added:

There has been some argument about where the responsibility lies. The right hon. Member for Anglesey (Mr. Hughes), with the charm and persuasiveness that we always expect from him, tried to maintain that a Government who had only been in office for two months could not accept the major share of the blame, and that blame also lay with the late Conservative Government and with outside factors. Of course, it is true that there are major outside factors and that the increases in farmers' costs began whilst the Conservative Government were in power. It may be that criticism can be made of the Conservative Government in that they should have acted sooner or more quickly. Some of us were urging just that.

However, the responsibility for action now clearly lies with the present Government. They must accept the prime responsibility for the current situation because the negotiations and decisions that have so critically affected the position were made by this Government. It is not true that the agreement which emerged from Brussels was welcomed on these benches. Nor can I see how, as the right hon. Member for Anglesey suggested, it can be argued that the calf subsidy gives a good long-term prospect for the beef producer. Farmers regard the decisions taken in Brussels as being totally disastrous for the industry and, in due course, the consumer.

My NFU executive is made up of members of all political parties and it is fairly free in its criticism of them. I remember strong criticisms being made of the Conservative Government. Vigorous representations were made to me about them. My local NFU sent out a circular this week in which it reported the views of the NFU Council delegate at an emergency executive meeting in Pembrokeshire on Friday. The circular said:

From all over the county I receive reports of farmers who are cutting their beef herds and complaints that they are losing £20 or £30 or more per head. It is the farmers who are suffering now, but those decisions to cut production must mean that the consumers will suffer tomorrow. It takes a long time for breeding decisions to become effective. It is then that the consumer will feel the effect. When expansion is needed the breeding stocks will not be there to meet it.

The Minister of Agriculture has prime responsibility for two industries which together are still central to the economy of my constituency, farming and fishing. Both now face total disaster. The crises in both industries are closely related and I am entitled to make a passing reference to the fishing industry problem.

The plight of the Milford trawler owners as a result of the increase in fuel prices was reported to me at a meeting I had with them on 22nd February, six days before the General Election. I presented the facts to the new Minister immediately after his appointment. On 28th March the Minister of State met the trawler owners to hear the facts direct from them. Six weeks have passed since then and the industry and the 400 to 500 jobs it provides survives only because the local fish merchants stepped in to bale it out with special assistance for three months. I have had no response at all from the Government, despite repeated letters and Questions. That industry will die at the end of June if the Minister does not act.

My constituents face a double catastrophe at the hands of this Government. In both cases disaster can still be avoided. I hope it will be. It is entirely at the discretion of the Government. Despite the development of other industries, such as tourism, the growth of Milford Haven as an oil port, and the existence of some Ministry of Defence establishments, the general prosperity of the area is still intimately and inextricably bound up with those two industries, farming and fishing. If they suffer my constituents will suffer.

My constituents wait anxiously for news. They hope to receive some today. They wait anxiously but without much hope. They fear that the Government just do not care, do not understand and do not intend to act. By his speech this afternoon the Minister will have gone a long way to confirm those fears. I beg him, even now, to prove them wrong.

7.45 p.m.

I must first declare an interest in that I have been a farmer for many years. I have reared a family on farming and I am still living on farming. It has not been as bad over the years as some people might say. There have been many difficulties but it is not all black. It was an unfortunate and sad day for farmers when this Government took office. It will in time be unfortunate for the consumers too. If we are honest, the problems in farming existed during last winter. We had high cereal prices, consumer resistance and high interest rates. There have been in addition all sorts of problems, such as increased oil costs.

But at least farming knew under what system it was operating. It knew what sort of support system was in operation and it knew that there was a transitional period in which there were four or five certain steps forward into the EEC. There was a course of expansion. There was about a 25 per cent. increase in expansion over three years. The price review had not been completed by my right hon. Friend the Member for Grantham (Mr. Godber). All these things are facts. But now, after a few weeks or months of the Labour Government, we still have the same basic problem of increased costs and difficulties with the high cost of feed. We also have the additional burden of complete uncertainty and no clear system of support.

We are not sure whether we are to continue in the Common Market. Farmers are experiencing real hardship, particularly in the beef and pig sector. What they fear most is reaching the autumn without a proper support system. This is a sad time for British agriculture, and there is a sad future in store for the consumer. There is no doubt that the effect of economic problems, not only here but throughout the Community and the world, has contributed to the present position. Just when expansion was under way, with more beef on the market, our economic problems grew. Coupled with this was the fact that household costs went sky high. Families have had to cut back. The combination of these factors has seriously affected the price which the beef producer is getting and hence his return on investment.

The media have complained about high beef prices. It is certainly important from the consumer's point of view to investigate large and rapid increases. All farmers understand that. It seems a pity, however, that the media, which probe so diligently into these things, do not look a little more carefully at some of the other things which this country produces and record the rapid rise in the number of television sets, motor cars and all sorts of household goods.

Why always pick upon beef producers and others who are seeking to produce the basic needs of life? Why should beef farmers not be expected to cover their costs as other manufacturers do? That is the question I ask the Minister, and I want an answer tonight. I am sure that the beef farmers of the South-West want to know why they must always carry the burden. It does not matter which Government are in power: the simple lesson must be learnt that if we want beef or any other agricultural commodity we have to pay a fair price for it. Farmers cannot be expected to carry on at a loss.

It is important to have a support system to deal with the ups and downs of production. A support system gives confidence to the producer and, in the long run, protection to the consumer. My condemnation of the Government is that they have seriously weakened the support system. I am not talking about increased costs or the problems of the winter. I am talking about what the Government have done in the last eight weeks. The flight from beef will continue to gather pace unless something is done before the autumn. It is the autumn that the farmers greatly fear. That is the danger period. I hope we shall have a clear answer tonight on this point and on the many other points that have been raised.

We cannot hammer home too loudly and clearly that there must be some support system. We could go back to the deficiency payment system; that is a support system. Otherwise there is the support plan to which we are geared in the Common Market. We want a clear answer from the Secretary of State for Scotland on that matter. We have not had it from the Minister of Agriculture.

To me as a dairy farmer it is sad that milk production is falling. If there is one commodity that this country can produce cheaply from grass it is milk. A high level of milk production is essential not only for liquid consumption but for manufacturing dairy products—cheese, butter and cream powder. Do we want to cut our butter production by more than half? Do we want cheese production to go down Why add to our balance of payments problems when we can produce these commodities ourselves and not have to import them?

We all know of the problems of the dairy farmers last winter. We know that the price review went a long way towards rectifying the high costs. Criticism might be justified of the delay in making those awards—if we are honest we must say that—but I condemn the Government for their action in introducing subsidies on milk and cheese. The subsidies will distort the pattern of manufacture. The milk subsidy will increase milk sales by 1½per cent. to 2 per cent., which equals a loss of manufacturing milk for about 15,000 tons of cheese. That is a serious matter. Now the Government put a subsidy on cheese, which will increase cheese production, when insufficient milk is being produced to make the cheese that is required. That is a sad story and it is quite unnecessary. I hope that the Secretary of State for Scotland will have a word with the Minister of Agriculture and ask him to think again about milk and cheese subsidies, which distort the whole pattern of the milk manufacturing system.

We need urgent remedies. Support is absolutely necessary before the autumn. Agriculture needs something that can be seen and understood. I do not ask for a price review every six months, but I ask the Government to undertake a review and to tell the farmers exactly what is the position, because costs are rising so rapidly. We should look at these problems more than once a year.

Many hon. Members may disagree with me, but I do not think that "intervention" is a dirty word. Good housekeeping demands that one brings out one's surplus from the store when there is a shortage. I know of no housewife who runs out her larder completely. Housewives always keep something in stock. "Intervention" is not a dirty word. We may have to make adjustments and pay out intervention money instead of physically storing produce, but intervention is not in itself wrong. Good housekeeping demands that surpluses are not wasted.

7.56 p.m.

One reason why this has been such an interesting debate is that Opposition Members seem to be able to express more vigorous opinions about agriculture now that they are free from the shackles of office than they were before 28th February. The hon. Member for Devon, West (Mr. Mills) referred to the tremendous expansion in agricultural production during the last three years. He forgot to mention that one significant reason for that was that we have had good growing seasons. One of the few things that the Conservative Government can claim is that farmers were fortunate in the weather provided by the previous Prime Minister.

During the speech of the right hon. Member for Cambridgeshire (Mr. Pym) I intervened to remind him of the comments made by Sir Robin Turton at Question Time on day shortly before the General Election. He reminded the present Leader of the Opposition of the dreadful plight of livestock producers. I should hate to believe that farmers in my constituency had swallowed some of the party propaganda which we have heard today.

The debate will be even more interesting if those who hear it or read of it take note of the state of affairs before the General Election. I have noted a comment made by the former Member for Northampton, Mr. Reginald Paget, just before the election. He complained of calves being sent to the kennels to feed fox hounds, not because of any compassion or concern for the appetite of the foxhounds but simply because farmers could not get a decent price for their beasts in the market We did not hear much from the national Press about that comment We have heard a great deal more about cows suddenly found to be suffering from starvation. That was within a matter of days of the present Government taking office.

We knew that farmers in our constituencies were facing difficulties before 28th February. I am frequently in touch with farmers and I know their anxieties and the serious difficulties they face. I know, and so do they, that the deadweight price they received for steers and heifers rose by only 1·8 per cent. for steers and 1·4 per cent. for heifers between January 1973 and January 1974 while costs rose more.

The hon. Member for Devon, West knows that a farmers' costs have risen much more greatly than have the prices which he receives He will be aware that in December 1970 the price a farmer received for milk was 19·8p per gallon. In three years that figure increased to 24p per gallon. In those years, however, the price of dairy compound feeding stuffs rose from £40·62 to £62·92. In those three years the costs not merely of feeding stuffs but of everything else increased greatly. Therefore, it does not become Conservative Members to try to suggest that all these problems have arisen in the last few weeks. Indeed, I suspect that as Conservatives considered the traumatic situation politically between 1st March and 4th March, which was the date when the Labour Government took office, at least one Conservative Member will have remarked to his companion or wife at the time "One good result of the election will be that I can now start speaking about agriculture with a little more vigour than I have done in the last few months or so." If any Conservative Member were now to seek to deny that such a comment was made, I should be quite astonished. I do not minimise the difficulties but I am emphasising that they have been with us for a considerable time.

The right hon. Member for Cambridgeshire, who opened the debate for the Opposition, read a sad letter from a pig farmer. It was the sort of letter which I have received from one or two people in my constituency. That pig farmer faces serious difficulties. When the right hon. Gentleman was reading the letter, I called out—perhaps I was wrong to do so, and perhaps also the right hon. Gentleman did not hear me—"Give the date of the letter". The right hon. Gentleman did not give the date of the letter. I suggest that we should be given the date when the Opposition spokesman replies to the debate. It is obvious that the letter could have been written either on 7th January or on 7th May—in other words, under either a Conservative or a Labour administration.

I am concerned to make sure that agricultural production is increased and improved. I live in South Yorkshire and I used to be president of my local Labour Party, which met in a working men's club. Lord Williams of Barnburgh became steward of that working men's club at a time when his interest in agriculture might have been rather more rudimentary than it proved to be after he had been in the House of Commons for a few years. Most of us in South Yorkshire, although we are greatly interested in the subject of coal, are aware of the importance of agriculture to our area. I have in my constituency 11 pits, which means that a large acreage is being used to produce coal, but it must be remembered that above ground a great deal of the land is used for the purposes of agricultural production. I want that production to continue to grow. Therefore, I suggest that if Conservative Members ceased trying to use farmers as a party political tool the country would be far better off.

I also want to make sure that my right hon. Friend fully appreciates that many Labour Members are concerned about the fact that some farmers find themselves in difficulty. I hope that my right hon. Friend's estimate of the situation will prove to be right. If not, I hope that he will be prepared to intervene to protect the long-term interests of the nation. It is all very well for Conservatives to suggest that the price should rise now, but they know full well the economic consequences of further inflation of the kind inflicted on Britain by the Conservative policies which have led to our present problems. Therefore, it would be wrong to take a short-term view as many Conservative Members appear to be doing.

I should like to say a few words about a subject which has not been dealt with in any detail in this debate. I refer to the question of forestry, which is an important part of agriculture. When the Labour Government took office they inherited no forestry policy whatever. In June 1972 the Conservative Government produced a White Paper which suggested that since forestry offered only a 3 per cent. return we should rely on forestry for amenity purposes rather than as something that would make a significant contribution to our economy. The Conservative Government saw immediate benefits in that policy, regarding which the Treasury made a cost-benefit analysis. However, many people who are genuinely interested in forestry were somewhat cynical about that analysis. In a matter of weeks the arguments put forward by the Treasury were largely destroyed, because immediately after publication of the White Paper the world price of timber began to soar and, within months, doubled.

Even though in June 1972 it might have been argued that the policy then pursued by the Conservative administration was correct, the shattering effect of increases in the price of timber meant that the policy was no longer relevant. However, that occurred in June 1972. We must remember that the Conservatives stayed in power until February 1974 and produced no sensible alternative policy. It is true that soothing words were used about the valuable rôle of forestry in promoting leisure activities, but there was no move towards the furtherance of any sound forestry policy. It is vital that the situation should be put right.

The United Kingdom is producing only one-tenth of our present timber requirements. Furthermore, raw material prices of timber and associated products are not likely to fall. An additional factor to bear in mind is that timber producers are not keen on exporting raw timber. They prefer to provide their consumers with timber products rather than with the raw timber itself. In that situation the Conservative Government were most remiss in not acting more speedily. Those who wish to plant trees found themselves in difficulties in the days of Conservative Government because the interim planting agreement expires at the end of 1974. Therefore, while the Conservative Government remained in office the prospects for forestry appeared to be very bleak indeed. I hope that my right hon. Friend will not take on the guilt of the Conservative administration but will be prepared to tell the House that we can expect a forward-looking and wise forestry policy statement to be made before very long. If that happens, we shall have taken a step forward towards making a significant improvement on previous Conservative policies.

Although I appreciate that farmers face serious problems, I have every confidence that the Labour Government will make decisions which farmers and Britain in general need. I can say that with confidence because anybody who looks at the history of this century and compares the record, arrangements and provision for agriculture as between Conservative and Labour administrations will have no doubt what that history shows. Although it must be said that the wealthier farmers are usually members of the Conservative Party, and frequently provide Conservative Members of Parliament, the vast majority of people in agriculture and most of the people who depend on agricultural production have benefited more from Labour than they have from Conservative rule.

8.9 p.m.

I wish that I had more time to take up the comments made by the hon. Member for Rother Valley (Mr. Hardy) and to deal with some of his extraordinary statements. Many of his remarks had no basis in fact. I think it can be said that the hon. Gentleman does not know what he is talking about on the subject of farming.

I would remind him that 40·2 per cent. of our forests are run by the Forestry Commission. An extremely good policy was adopted by the Conservative Government—a policy which, incidentally, has been continued by the Labour Government—in respect of private forests with the provision of planting grants and other assistance. I presume that in the coming months negotiations will continue to provide for the forestry season from 1975 onwards. The hon. Gentleman was wrong on that subject, as indeed he was in every other stricture he attempted to make of Conservative policy.

The hon. Member for Rother Valley expressed certain anxiety for some of the farmers in his part of the world. He was right to do so. I feel a similar anxiety for farmers in Derbyshire.

Hon. Members have been right to point out that the present situation has not been created in two months. No one suggests that it has. Some of us wish that action had been taken in the livestock and milk sections earlier than it was. However, action was taken at about the turn of the year when the going for some milk farmers was extremely bad. The action was taken in the Price Review. However, that review was not completed because of the calling of the General Election. A great deal of it was to be completed at the price determinations being held at the Council of Ministers in Europe. The election disrupted that and a great chunk of the price determinations did not happen, though they would have taken place if the Conservative Party had remained in power.

I have never heard a speech so complacent as that made today by the Minister. It was an extraordinary performance. Listening to him talking about the livestock section one gained the impression that everyone was panicking unnecessarily, that there was a little problem in terms of beef and pigs, but that on the whole all was well. The right hon. Gentleman had the nerve to say that the present price per hundredweight on the hoof for beef in the market, with the addition of the new £10 calf subsidy that he had negotiated in Europe, came to just over £20 per cwt, so why was anyone worrying. That was dishonest. For one thing, the cattle going through the market last week did not receive, and the cattle going this week and next week do not receive, this additional calf subsidy. It will not be paid till June. Those cattle started their lives last year, so they do not qualify for the additional £10 per head, as the right hon. Gentleman tried to pretend.

There are great difficulties in the beef sector. We hear a growing crescendo of complaints. Farmers in west Derbyshire have supplied me with figures. They look awful. Beef farmers are experiencing grave problems, and now they are accentuated because of the lack of confidence caused by the attitude and policies of the Minister. He has taken out the bottom from the market. He has taken out the permanent intervention from the market. Having removed the guarantees, as we did, we promised the NFU and farmers that there would be an intervention system.

The right hon. Gentleman has removed that. But he has not completely removed it. There can be mandatory intervention. When we as a whole EEC are below 93 per cent. of the guide price the Commission in Brussels can order mandatory intervention throughout the Market. That should occur if prices are substantially below what would have been the intervention price. It is strange that the Commission has not yet taken this action.

There is a lack of confidence. There is great trouble in the livestock section. A great many people who in 1972–73 were encouraged to expand their beef production and who bought in good faith now find it very difficult to continue. The same applies in the pig industry. The Minister's measures are not adequate.

The argument comes down, therefore, to what can and must be done. We had no word from the Minister about that. He did not even say what should and could be done in the short term, let alone in the medium or long term. This was about the most disappointing feature of his speech. How complacent can anyone be?

Action can be taken fairly quickly. We are in the Common Market, and farmers, not only the farmers of west Derbyshire but the NFU as a whole, still believe that the common agricultural policy is best for our farming industry. In the context of the common agricultural policy there are two or three things which can be done immediately.

The first relates to the co-efficients as they are applied to the relativities for fat cattle. These co-efficients are the base from which the calculations are done for ACA's and MCA's. They were fixed in the market conditions of 1973 and they are reviewed on an annual basis. There is no reason why the co-efficients should not be reviewed now so that a more realistic level may be applied immediately. If that were done it would immediately change the level of the compensatory amount being paid on the quarters of beef coming into this country from overseas, and it would also affect the levels of MCAs being paid to importers.

The next thing is to deal with the imports coming into the Community and into this country from third countries. Are we really in need of imports from third countries when there is a certain amount going into store? Would not the temporary imposition of a ban on imports from outside the Community be worth considering as quickly as possible? That could be done straight away. There would not be much difficulty in getting such a proposition through the Council of Ministers, because almost everyone feels the same about it. Then will he extend the pig grant to 1975 and introduce a similar cattle grant?

As for the medium term, the Minister must know that at present the green pound is over-valued. Our Italian colleagues revalued their green lira in two stages last autumn and at Christmas. It is true that a revaluation of the green pound would raise some consumer costs and prices for farmers, but that is what we want. Why should not it be done? In my view, the Minister should start talking about this with his colleagues in the Council of Ministers.

Turning to the longer-term future, I cannot understand why the Minister has allowed himself to be taken for a ride in allowing his right hon. Friend the Secretary of State for Prices and Consumer Protection to have £750 million worth of subsidies for food. If the Cabinet wanted to do something by way of subsidy even 1p on a pint eroded, as it is, by delivery charges of ½p in West Derbyshire, they should have subsidised feeding stuffs. This would have had the effect of restoring confidence, of keeping prices stable and of encouraging the livestock production which the Minister says we need.

Why has not the Minister suggested this? If it had been done there would have been no need for these dangerous subsidies on retail prices. There is no end to them, and there is no limit on them. How will the Minister educate the public into getting off this runaway bus? At what stage will he do this? In my view, this is a great mistake. The Minister should not have allowed himself to be overcome by his Cabinet colleagues.

In this debate we have had clear evidence of the lack of confidence that exists in British agriculture. In my view, we must stay with the common agricultural policy by means of which a great deal can be done immediately to restore confidence. By working within the Council of Ministers we can give increased responsibility to the individual by, for example, seeing that grant aid from the guidance section is going more to the individual than from the guaranteed section. All this can be done. I hope that the Minister will do something constructive about it.

What the right hon. Gentleman said today was negative and of no value. He cannot sit back in the present situation. If he does, he will have the shortages which my right hon. and hon. Friends have been talking about, because inevitably they will come upon us this autumn and in the coming year.

8.20 p.m.

I rise to put the case of the hill farmers in my constituency and elsewhere who have been severely hit by the escalation of costs and the depression in market prices. The farmers I represent are not the capitalist-type of large-scale landowners. They are not the Range Rover and shooting-stick brigade of the shires who range over hundreds of acres of fertile plain. They are the family farmers, and they are the backbone of community life in small villages and townships throughout rural Wales and the highland areas. They are the core of a distinguished rural community.

There are 1,300 holdings in Merioneth, and more than half of these are wholly owned by the occupier; a further 180 are 50 per cent. owned. Of these, 630 are classified as equivalent to less than 275 standard man days. Classification of this type of farm is that over 380 are employed in livestock rearing and the fattening of sheep and more than 250 in fattening both sheep and cattle. There are 350 milk producers and 70 per cent. of the area is rough grazing. About 81 per cent. of the area is land over 500 feet; 47 per cent. of the land in the area is over 1,000 feet.

Yet on the relatively small farm units and on the difficult land the family farmers of Merioneth and other hill areas have stepped up production immensely over the last 20 years. Milk production per cow has doubled in that time and the number of breeding cows has increased from over 5,000 in 1957 to more than 13,300 in 1973. These farmers take a particular pride in the development of the pedigree Welsh black cattle. In animal husbandry Merioneth has given a lead in the eradication of brucellosis. In that respect it is one of the healthiest areas in the United Kingdom, and only about half-a-dozen of the herds there are not totally accredited. The same farmers gave a similar lead with the tuberculosis scheme.

The total value of the agricultural production in Merioneth is more than £5 million, which is a massive chunk of the economy of the area. Of that, 57 per cent. is derived from cattle.

The intensive nature of many of the family farmers' livestock production can be seen in the production figure of 3½ cwts per acre liveweight achieved between May and September last year. The achievements on this type of marginal hill farm in terms of production have been tremendous over the last 20 years. It is vitally important that the development of the structure of this type of farming is catered for in the Government's policies. This type of agriculture, depending mainly on the production of store cattle, has been extremely hard hit in the last eight months. I have seen animals regularly at the sale in Dolgelly which fetched no more this month than when they were bought in last year. Farmers are having to cope with that sort of low profit and a massive escalation in feeding stuffs.

Lack of confidence in fat cattle is having severe repercussions on prices of store cattle and calves. This effect has worked its way throughout the livestock sector. The low fattener prices reflect themselves in low store and low calf prices. They affect confidence of breeders in the future of production. To the farmers whom I represent there is no alternative sector of the industry to which they can turn since they are dependent on store cattle.

The Minister told me last month in a written reply that it was no part of the Government's intention to let milk prices fall to unrealistic levels. What does he consider to be a realistic level of return for these hill farmers? I hope that we can have a far more solid assurance from the Minister than we had at the beginning of the debate.

It is our duty as politicians to provide a framework of policy in which the farming community of the hill areas can have the confidence to maintain the momentum of increased productivity which they have clearly demonstrated over the last 20 years. There is only one course of action open to the Government. They must restore the fatstock certification scheme for beef. This has been called for by Conservative Members tonight, but I detect some hypocrisy in their attitude. It was a Conservative Government which brought the United Kingdom agriculture industry into the clutches of the intervention system. It is agreed among farming opinion now that the intervention price of £17·25 per cwt for beef would not cover the increased cost of production.

I look to the Government to revert to the policy of the guaranteed prices which served United Kingdom agriculture so well since the pioneering measures of the 1947 Act. I hope that this price support system will form part of the renegotiation of the EEC terms which the Government are seeking. I hope that the Government will be able to persuade the Common Market to revert to this same type of support. In the context of trade in agricultural products there is no room in the 1970's for the neo-protectionist policy practised by the EEC. There must also be a framework of investment for the industry which must seem to be effective.

The Government must reconsider the question of fertiliser subsidies for hill areas. This is important in view of escalating fertiliser costs and the need to bring more hill areas into production. The hill farmers I represent have proved their ability to invest in the development of hill areas. The Minister knows well what has gone on at the experimental husbandry farms at Pwllpeiran. This kind of work must be conducted on an extensive scale throughout the Welsh hill areas. Investment in the industry must mean the availability of capital. The Government must look again at the OECD report on capital and finance in agriculture, published in 1970, which dealt with the whole structure of capital availability for the industry. The Wilson report on capital availability has been overtaken by events since interest rates generally have escalated. I hope the Minister will look at the possibility of organising a form of direct capital injection into the industry through subsidised interest rates particularly for loans to buy stock and farms.

I am in some difficulty this evening. My party feels that unless we have a far more substantial assurance by the Government on the introduction of a more satisfactory guaranteed price system for the beef sector, it will find it difficult to support the Government tonight. If we can have a definite assurance of the Government's intention to implement a price support system which will allow hill farmers in my constituency to look to a better future and to have confidence about increased production, the Minister is assured of our support. But in the concluding speech we must have a far more specific assurance than has yet been given.

8.30 p.m.

On a point of order, Mr. Deputy Speaker. It is customary for you to call hon. Members from each side of the House in turn. May I draw your attention to the fact that the hon. Gentleman you have just called will be the third speaker in succession from the Opposition side of the House?

I am prepared to rule on this matter by repeating what Mr. Speaker said earlier before the hon. Gentleman entered the Chamber. Mr. Speaker took note of a previous point of order and ruled that the best would be done in all the circumstances and that there were precedents for not necessarily calling hon. Members in strictly alternate fashion, from one side and then from the other side of the House, according to the number of hon. Members present. I can assure the hon. Gentleman that the best will be done. I point out that the previous speaker, the hon. Member for Merioneth (Mr. Thomas), is a member of a minority party and that his rights have to be protected. Mr. Michael Hamilton.

I warmly congratulate my right hon. Friend the Member for Cambridgeshire (Mr. Pym) and his colleagues on choosing this subject for debate. We have been debating for exactly five hours and it is clear that there will not be time for many of my right hon. and hon. Friends to take part. This is an indication of the interest in this subject. I have been conscious throughout the debate of the contrast between the number of hon. Members on these benches and the number on the Government benches. There have been moments during these five hours when there have been 10 Conservative Members to every one Labour Member in the Chamber, which causes one to draw a conclusion about the relative interest shown in this subject.

I acknowledge that any new Government need time to play themselves in. I wish the Minister well in his job and I am delighted to see him here. I want to see his policies working out and to see what he can do for the agricultural community. He is a man who is not new to the job. However, before he has been in his present office long I hope to be able to persuade him to spend a day in Salisbury, an area which has good farmers and wide open country. He will have a warm welcome.

A deep malaise has settled on the livestock farmers in that part of the world. There is no getting over the fact that something has gone desperately wrong in the market. The Minister is aware of this and we are looking to him to see what he can do about it.

Many examples have been given in the debate of the present situation in agriculture. Last week in Shaftesbury, at a market used by many of my constituents, Friesian steers were fetching £57; a year ago the same animals were fetching £80 to £85. This situation is common. Everyone acknowledges that in the intervening 12 months the cost of feeding stuffs has rocketed through the ceiling. Naturally, the farmer looks to recoup his loss in the end product, but he is not doing this. It is precisely the same story with calves. It is not worth a farmer's while to feed a calf for a few days and then hire transport to take it to market.

I am sorry that the hon. Member for Rother Valley (Mr. Hardy) has left the Chamber. A few moments ago he referred to the claim by the much respected former Member for Northampton, Mr. Paget, who claimed that newborn calves were being slaughtered and given to the local hunt. There is nothing unusual about this. I could name a farmer in my constituency who is doing precisely the same thing. This is an indication of the extraordinary position which has now come about in the beef market.

I was glad that my hon. Friend the Member for Derbyshire, West (Mr. Scott-Hopkins) spoke up for Europe. It would be the greatest mistake to ascribe our present troubles in agriculture to Europe and the Community. It is no good looking towards Europe for a scapegoat. I well remember the present Prime Minister in the House in the spring of 1967 saying of the common agricultural policy:

All hon. Members acknowledge that the CAP needs developing. Much has been done already, but it can be done only from inside. I have spent a little time in Brussels in recent months and I must pay tribute to our two Commissioners, one from each of our major parties. It is of enormous advantage to us in this country, and particularly for the farming industry, that one of those Commissioners is a distinguished former Minister of Agriculture. He is doing great work for us there, which I hope the Minister recognises.

I wish the Minister well in his job and I hope that he will soon overcome his hostility to the European concept. If he can restore confidence to the livestock farmer, we on this side will appreciate it, but time is running out. His speech today was disappointing. The problem is very grave and we are hoping within days to hear more.

8.36 p.m.

I am glad to have heard the hon. Member for Salisbury (Mr. Hamilton), who made perhaps the best kind of speech that has been made today while I have been sitting in the Chamber.

If there is an industry of paramount importance to the British people, it is farming. As a trading nation we have limited land space to exploit for farming. We still have to import more than 50 per cent. of our food. If we are to continue to improve the standard of living and provide the consequential increase in food consumption, we must take a long, hard look at this industry. We may find that the cost of importing additional food in future may be a far greater burden on our balance of payments than it has been in the past.

Whatever the weather, not only over the past three years but over the past 10 or 15 years, the farming community has increased its productivity. If we recognise that we need that community and we then recognise its increased productivity, which is almost without peer, we will achieve a much better analysis of the industry's requirements than the silly nonsense of Conservative Members expecting the present Government to have produced in six weeks the policies that will rescue farmers from their present plight.

It is no good anyone telling me that the present situation in the farming community is either directly attributable to the Labour Government or has arisen since the Labour Party came to power. There are a number of farmers in my constituency. Before Christmas they were telling me of the very difficult situation they faced. The president of my local party is a farmer and has been president for three years. Therefore, there is no need for anyone to imagine that some of us on the Government side of the House do not have contact with the farming community. The farmers in my constituency have never done anything other than come to see me when they thought they had a case of some kind to make. They came to see me before Christmas, Just after Christmas and last month—which was, after all, only two or three weeks after the present Labour Government had come to power.

I know that some farmers are as bad as some politicians. A month ago I met a deputation at one of my surgeries. They came in last so that they should have the fullest possible time. I discovered that the secretary of that farmers' organisation at Westbury had had the audacity on the previous day—although I was giving full facilities to him—to circularise his farmer members telling them to telephone me giving them my telephone number, and to continue to telephone me over the weekend. The result was not only that I received telephone calls but that a number of fools rang my number, ringing off when I answered. That is not the way to deal with farming matters.

I have read all the stuff that has come from the National Farmers' Union. I have tried to discover the real problem. As far as I can see—I put this to my right hon. Friend and to the Lord President of the Council a couple of weeks ago—the biggest problem at present is the cost of feeding stuffs for farmers. [ Interruption. ] If the hon. Member for Macclesfield (Mr. Winterton) wishes to intervene, I am willing to give way.

If the hon. Gentleman had been present throughout the debate, he might have appreciated that this point has been reflected in practically every speech, from both sides of the House.

The hon. Gentleman is constant at this game. I do not know whether it is because he has been a Member for only a short period. I am making my own speech and not somebody else's. It is not the hon. Member's speech or that of any other hon. Member. I am saying to my right hon. Friend, and in so doing giving support to hon. Members on either side or on both sides of the House, that if the problem with the farming community is the possibility of increased prices—I do not want to see prices to the consumer rising, any more than the hon. Gentleman does—the only way we can stop the consumer having to pay increased prices over the counter is for the Government to take responsibility for part of the increased costs of feeding stuffs for the farming community. My right hon. Friend can resolve his problems about the difficulties which concern the consumer if he takes that attitude rather than any other.

Does not the hon. Gentleman agree that if £350 million were to be spent on subsidies it would be much better spent on feeding stuffs than on milk and cheese?

I take the point. I still think that it is necessary, if we are to solve our economic problems, to create a climate in which we can get the complete co-operation of management and trade unions in industry. The method of subsidising foodstuffs over the counter is part and parcel of the social compact that can create the confidence to keep our people working to the fullest extent and possibly damp down any wage demands which might exacerbate inflation. So I am not against the £350 million that we are to spend in subsidies. If we do not want to see meat prices rise, it might be as well to spend a little more on subsidising feeding stuffs.

The farming community is paying the price of the experiment in Europe. The Government must get back to the 1947–57 system of guaranteed prices. So that there can be confidence in the farming community and a degree of long-term planning in each sector of farming, there should be a specific farm review every five years, with interim supplementary reviews each year to cover the possibility of unforeseen costs to the industry. One of the things we have done wrong in the past has been the yearly review, because it has meant too much switching from one section of farming to the other.

We must grasp this nettle. The farming community is of vital importance to the nation. In addition to the money already allocated, my right hon. Friend should consider the possibility of subsidies for feeding stuffs, because this is the key.

8.48 p.m.

We are debating an industry which probably involves more capital, if land is included, than any other industry. It is one of our biggest employers. It contributes to our exports either directly or indirectly in commodities associated with agriculture. We are debating an industry which could add £700 million a year of advantage to our balance of payments. We are talking about the most efficient agriculture industry in Europe. All we are doing is punishing it for this.

There will be no more cheap food from other parts of the world, just as there will be no more cheap oil. The Arabs, the Indians, the Chinese and other peoples will not any longer supply us with cheap food. So we must grow our own.

The beef situation drastically affects the whole country, and particularly my constituency. We know that farmers, in putting cattle to the market, are losing £30 a beast. Similar figures have been given today about the pig industry. It is obvious that this situation cannot continue without serious damage to the farmer and to the consumer. If it goes on we shall get not only a shortage but dearer and, finally, imported beef. Is that what the country wants?

In any debate it is no use simply criticising. It is the duty of hon. Members to propose remedies. I shall mention a minor and a major remedy. Although I was not a Member of the House in the last Parliament, I recall that the export of beef on the hoof was stopped by the previous administration under pressure certainly by the then Opposition on the ground of cruelty to animals. Since then, however, the O'Brien Report has been published.

I am sure that the hon. Gentleman does not wish to misrepresent the situation. I know that he wishes to makes a constructive point. The Government are now examining the O'Brien Report. We have not opposed anything as yet and we have taken no posture on it. There was a free vote at that time and on both sides of the House there was support either way. I am looking carefully into this matter. This is an important report. I take careful note of what the hon. Gentleman said.

The O'Brien Report has vindicated that trade. The question of cruelty to animals was to some extent a moral issue. Indeed, is it not cruel to slaughter thousands of cows in calf?

The big mistake made by the present administration was in the recent nego- tiations in Brussels, when the guide price could have gone up to 12 per cent. and we took only 6·3 per cent. With the transitory arrangements in force, we could have gone up to 17 per cent.

Another matter to which I wished to refer was the removal of intervention support. I hope that for the sake of our consumers and our farmers the Minister will bring forward some immediate positive proposals for the agriculture industry and its consumers.

8.53 p.m.

In rising at this hour and realising the need to be brief, plus the fact that regretfully the Minister who is to reply is not in his place, it is difficult for me to deal with a number of points which have not so far been mentioned.

First, I should like to add my feelings about confidence in the industry. It can be paraphrased by what the right hon. Member for Anglesey (Mr. Hughes) so wisely said: that it is a question not of arithmetic but of confidence.

I have attended a number of debates in the House on agriculture. Time and again when the Labour Government are in power confidence, not only in agriculture but in foreign affairs, in industry and in the City, has been sapped. It should be realised that within days, even hours, of right hon. Gentlemen opposite taking the kind of decision that was taken in Brussels an industry as great as agriculture can suffer deeply.

During the period of the Conservative Government, the Labour Opposition found it necessary to devote only one Supply Day to agriculture. In this Parliament we had one day during the debates on the Queen's Speech and now a Supply Day within two months of Labour Members taking office. [[ Interruption. ] Those are the facts. There can be no argument about that.

Farmers came from Scotland yesterday, they are coming from England and Wales tomorrow and they are coming from Devon, characteristically on their own, today. Those farmers did not lobby their Members of Parliament while the Conservative Government were in office. They have lobbied them only since the Labour Government came in and the Minister of Agriculture, Fisheries and Food took his political decision in Brussels.

The hon. Member for Gloucestershire, West (Mr. Loughlin) is correct in saying that we left the review of the milk price to the price review. Of course we did, but we reimbursed all the costs that the dairy farmers incurred and more. We did so because we believed that the time to review agricultural costs was at the time of the price review. The Minister went to the Common Market price review and pulled the mat from under the British beef producer. That is what has caused the basic problem for the British beef industry.

We all know that there is a pig cycle and that it has troughs and peaks. I fully accept that there are factors that have made the trough lower than in the past. What must be remembered is that the situation has altered because the specialist production of pigs has increased and many of the small men who put their all into the pig industry are in financial difficulty. In the old days, with mixed units and mixed farms, one section could be bady off and be carried by another. However, we all know that the specialist pig producers who put all their money into the industry now have no reserves with which to carry themselves over this crisis.

I have a letter from the Director General of the British Poultry Federation. He says:

I now turn to one or two other matters that as far as I know have not been mentioned. A good deal has been said about the State Veterinary Service at Question Time. The Minister will be aware that it is in a parlous state. Under the previous Government an interdepartmental inquiry was set up to consider what could be done. The time has come when we should know the result of the inquiry. I appreciate that it is to some extent linked with the pay of Government scientists.

I am glad that the hon. Gentleman has raised this important matter. As he knows, I have been connected with the veterinary profession for a long time. The profession understands my point of view. It is a matter that must be resolved.

I suggest to the Minister a solution to the difficulty that may not have occurred to him—namely, the extension of private enterprise in the veterinary service. He will recall that when the foot-and-mouth crisis occurred it was necessary to take on private veterinarians to help out the State service. That course should be examined with the possibility of considering whether employees of the Civil Service should confine their activities to bureaucratic advice and research and whether the men in the field should be employed on a contractual basis in the same way as the general practitioner carries out his work in human medicine.

Another crisis that may well be hitting the industry—I shall not apportion any blame as I am not certain whether it is within the power of any Government to handle it—is the acute shortage of raw materials for all aspects of agriculture that may not appear to be important. It is predicted that sisal, polypropylene, polystyrene for punnets, steel for machinery and equipment, agricultural chemicals, cement, hop-wire, plastics, glass, tin, paper and board will be in critically short supply. All those materials are used in large quantities by the agriculture industry and short supply in the next 12 months could be especially serious.

The most important material of all is fertiliser. There can be no farmer who would ever economise on fertiliser, since it is realised that it must be bad economy to do so. I am told that the supply of fertilisers for the forthcoming winter season and for next spring will be critical. We know too that machinery is in immensely short supply and that there is a 12 months' delivery time for almost every ordinary item of equipment.

My right hon. Friend the Member for Cambridgeshire (Mr. Pym) concluded his excellent speech by saying that never had confidence in the agriculture industry collapsed quite as quickly as it has done now. I entirely agree. The Minister knows perfectly well what steps should be taken to put matters right, and I urge him to take them at once.

9.0 p.m.

I shall be as brief as possible. I shall refer to only three subjects—pigs, beef and horticulture in general. The latter is represented strongly in my constituency but has not received much attention so far in the debate. I, too, was astonished by the complacency which ran right through the Minister's speech. It was not typical of him. I have never heard him do it before, but it cannot have been lost on any of us.

I make no apology for going into some little detail about the costs of pig production. The right hon. Gentleman said that prices are recovering and the cutbacks on the MCA may help. But what is the situation since the 50p subsidy was introduced? I shall take the example of an efficient unit in my constituency. The farmer in question is producing his own weaners, fattening 2,000 pigs per annum to 160 lb of bacon deadweight, on contract. Twenty pence of the 50p subsidy has been lost already in the depressed market. The average killing-out price for his pigs is £32·90; the cost of feed—he mixes his own rations—is £26·19; wages average £3 per pig, water and light £1. This leaves him with the princely margin of £2·21 per pig with which to pay his tax, the maintenance of his machinery, the vet and massive rates, which have just about doubled.

There is not only no money in it but a deadly loss, and it is not surprising that this farmer is selling his sows and not replacing them. The right hon. Gentleman must accept that this sort of situation is happening all over the country. The right hon. Gentleman should at least assure the farmers that the 50p will continue after the end of the period he stipulated for it.

I turn now to the situation of beef production. The calf subsidy has come too late—welcome though it is—to deal with a situation which is in every respect financially desperate at the moment. The subsidy has come too late to prevent slaughtering on a massive scale. I am quoting the Ministry's own figures. I understand that in the first week of April 6,200 bobbie calves—calves for veal—were slaughtered, compared with 2,200 in the same week last year. That is a very serious rise.

Certainly the calf subsidy will not be enough to persuade farmers to face another winter's feeding costs on anything like the scale they have recently endured. The effect of it will not be felt in the shops for about 18 months because beef is the commodity which takes the longest time to turn. Yet beef producers have the least ground for confidence of any farmers at the moment. This is a severe reflection on the Government.

I give another example from my constituency—an efficient stock farmer, who fattens beasts and has done so for many years. On 14th March, a year-old beast of good quality fetched in the market £22·45 a cwt., which meant a loss of £20 to £30. On 2nd May, an exactly similar beast fetched £19 a cwt., a return on the animal £26·73 lower than it was less than two months earlier. No wonder that the herd has come down from its normal figure of 150 to 50 since the New Year. These are the realities of the situation. There is a danger of collapse in the autumn when producers, who cannot face the winter, start slaughtering their three-parts-finished beasts. The only answer must be a cash injection of some kind now.

I turn to horticulture, a sector which is always facing difficulties, perhaps on a different scale from those in ordinary farming. Basically the overall difficulties are that both mechanisation and herbicides, upon which growers have always been encouraged to improve, have been maximised. There is little more efficiency to be squeezed from either of these. Wages rise steadily. A pieceworker in East Bedfordshire is now getting about £2,500 a year. There is the appallingly high cost of fertiliser and packaging. But worst of all is the increased cost of fuel. All growers in the glasshouse business are grateful for the subsidy which the right hon. Gentleman introduced a short time ago. It saved many of them in my area from closing down altogether this season.

Yet there is no certainty among growers as to what will happen after 31st December next. Plans for sowing tomatoes and particularly flowers for next winter have to be made now. Unless something definite is said before long the right hon. Gentleman cannot expect growers to take the risk. It is up to him to give an assurance as soon as possible about the position after the end of this year.

While I am on the subject of fuel, may I point out that gas is by far the cheapest fuel for the glasshouse grower. In Holland, our strongest competitor, 60 per cent. of growers are now using natural gas. The Government plan is to introduce natural gas to a further 20 per cent. of growers within two years. The contract price is pegged, which gives an enormous competitive advantage to the Dutch.

It is high time that we seriously investigated the possibility of large-scale conversion for our own growers. I know that there are difficulties. We are told that supplies are short and that the growers are too spread out, whereas the Dutch growers are concentrated near the source of the gas supply. That is not adequate. Given the seriousness of the position I hope that the right hon. Gentleman—who I am sorry is not here at present—will set up some kind of investigation. I am pleased to see the Minister returning. I am talking about natural gas conversion for glasshouses. I would like the right hon. Gentleman to set up some kind of investigation into a large-scale conversion programme. I believe that this could be done in certain areas. The Gas Council should be encouraged to go into it much more deeply than it has done so far.

Further, I wonder whether the time has not now come to weigh up the advantages of subsidised loans, such as are available in many Common Market countries, either as an alternative or as an adjunct to capital grants. I know that to date our industry has tended to prefer capital grants but in present circumstances, and given the unevenness of competition in Europe—and after all, the object of the Common Market was to ensure fair competition for all—it seems to be a factor, particularly in this inflationary world, at which the right hon. Gentleman should look more deeply.

The right hon. Member for Fermanagh and South Tyrone (Mr. West) has already mentioned the question of the monetary compensation agreement and the decision on Irish tomatoes. This is a monstrous injustice which makes a farce of competition. If our tomato growers are to survive the right hon. Gentleman must look at this again and do something, whatever the rules and regulations may be. I am glad to see him nodding his head. I am most encouraged by that.

A number of my hon. Friends have said that they find it reprehensible that all the blame for the difficulties in farming should be placed upon Europe. We would do well to remind ourselves yet again that before we went into Europe the leaders of the farming industry had come to the firm conclusion that it was in the interests of farming that we should be inside the Community rather than outside. [ Interruption. ] Yes, they did. If they have changed their view, let someone give us an authoritative statement, perhaps this evening. They cannot, because it is not the case. The crisis is not the fault of Europe. Of course, the common agricultural policy has to be changed; no one will quarrel about that. But to try to negotiate changes in Europe in the atmosphere of suspicion which has been created by the present Government cannot make their task any easier.

To say the least, the right hon. Gentleman is an amiable person to deal with, and I am sure that he has at heart the best interests of agriculture. When he was previously Minister of Agriculture this was held generally to be so. In view of the speech he made this afternoon, one wonders whether there are pressures upon him from his colleagues or the Cabinet to put the interests of the so-called consumer before the interests of farming, perhaps for electoral reasons. It is not typical of him, and I hope that he will take the serious warning which has come to him from almost every speaker in this debate, and act now.

9.10 p.m.

I promise to sit down at quarter past nine, and I certainly will not try to make any party political points. Not only is the time too short, but the situation is too serious for that. Above all, I am not going to be beastly to the Minister of Agriculture, partly because I have a long-standing affection for him and partly because he has an impossible job.

The Minister of Agriculture and his Scottish and Welsh colleagues in any party in a country which consists largely of an urban consuming majority and a farming minority have a difficult job. For the Labour Pary, which represents overwhelmingly the urban consumer rather than the farming community, it is particularly difficult.

I do not blame any Labour Cabinet for putting constraints on a Minister of Agriculture. When there is the slightest hope of getting cheap food for Labour Party supporters and the urban masses, the political pressures to put on such constraints must be enormous, and I recognise that. But we are entitled to have from the Secretary of State for Scotland a clear statement about what the Government think the long-term food position will be. The temptation to play this short is obvious, particularly—to be a little cynical—if the Government are hoping for an early election.

There is no point in my going over again the cost figures of beef producers. I have sent my producers' figures to the right hon. Gentleman, and my hon. Friends have also done that. The Government know of the loss suffered by beef producers on every beast in semi-intensive production, and they know the loss suffered on every pig. We do not need to stress that again. The question is, can we afford to play this one short, not just for livestock but for any commodity? Do we believe that a couple of good harvest will put the world situation right? Do we believe that, because at the moment the price in the market is going down, we can keep meat comparatively cheap in this country? The answer is "No". If for any reason the Cabinet thinks that the answer is "Yes", we should be told why. Is it supposed that cheap food will be coming into the country in future? If so, from where will it come?

My view is that feeding stuff prices will remain high, give or take a good harvest this year which might temporarily ease matters. If we allow the livestock industry to run down at the rate which present losses will make inevitable—and the calf subsidy increase cannot have anything but the most temporary effect—in three, four or five years, or even less, we shall be in serious trouble. Subsidised imports do not make it less likely but more likely that a crisis will arise for the consumer here.

The Government must come clean and outline their long-term prospect for food supplies. To play the matter short is not only a betrayal of the farmers of this country and of the consumers, but is a betrayal of all the things they have ever said about their duties to the underdeveloped world. If there is one thing that is certain it is that, with the starvation that exists in many parts of the world, it is the duty of this country—which has some of the most fertile soil and the most efficient agriculture in the world—to increase our food production. In this way we can make available to parts of the world where people are undernourished the food which otherwise we would be importing. To pander, for political reasons, to an urban majority and to go on trying to import cheap food instead of producing that food in this country, would be a crime against the world. I hope that we shall have an explanation from the Government.

On a point of order, Mr. Deputy Speaker. Since this is a debate on food production, is it not extraordinary that not one housewife has been called, although I have sat here throughout the day?

I am sorry to say to the hon. Lady that that is not a point of order. I call Mr. Alick Buchanan-Smith.

9.17 p.m.

The remarks of my hon. Friend the Member for Stratford-on-Avon (Mr. Maude) summed up, perhaps more eloquently than did many other speeches in this debate, the feelings of many hon. Members as to the way in which we should approach the agriculture questions. We must not approach this subject in any narrow sense or from any kind of sectional interest. The whole question of food production must bring together the people who work on the production side of agriculture, the farmers, and also the consumers. These matters cannot be viewed in isolation, but must be looked at against the wider background of Europe and indeed of the world. I am grateful to my hon. Friend for putting the matter in perspective.

I should like to begin by congratulating my hon. Friends the Members for Bute and North Ayrshire (Mr. Corrie), Dorset, West (Mr. Spicer) and Braintree (Mr. Newton) on their maiden speeches. We were all impressed by the manner in which they spoke and also with their constituency knowledge and the content of their remarks. We all look forward to hearing them again soon, for I am sure that they all have a great deal to contribute to our debates.

I am glad that the right hon. Gentleman the Secretary of State for Scotland is replying to the debate. The crisis facing the agricultural industry, particularly the beef industry, is of particular importance to Scotland. The livestock sector of Scottish agriculture plays a vital part and for this reason there is particular concern among Scottish producers at the present situation. I hope that in replying to the debate the Secretary of State for Scotland, who courteously met representatives of the Scottish NFU yesterday and listened first hand to what they said, will give us more encouragement than did his right hon. Friend the Minister of Agriculture and will offer us more hope for the immediate future. The message from the Scottish farmers' representatives yesterday was that the present situation should be dealt with urgently and many were most worried as to how in the next few weeks and months they will manage to survive.

Although we have had some useful and helpful speeches from the Labour benches—and particularly the speeches made by the hon. Member for South Ayrshire (Mr. Sillars) and the hon. Member for Gloucestershire, West (Mr. Loughlin), who both showed considerable knowledge of the farming industry—it is a pity that there were not more contributions from the Labour benches. I repeat that we are all in this important matter together, and the debate would have been helped a great deal had we heard more from Labour Members.

The hon. and learned Member for Montgomery (Mr. Hooson) spoke from the Liberal benches. I found it difficult to understand precisely what he was driving at and what message he was trying to get over to producers and consumers. I could not help thinking along much the same lines as I did after the Minister carried out his negotiations in Brussels. Like him, I thought that the hon. and learned Gentleman was trying to face both ways and to please both the producer and the consumer at the same time and in different ways. I felt that if he had not been speaking in this House he might have made quite different speeches in different places. I expected to hear a more precise indication of what the Liberal Party would like to see happen.

The hon. and learned Gentleman castigated my right on. Friend the Member for Cambridgeshire (Mr. Pym). However, my right hon. Friend put forward certain proposals and said how a Conservative Government would approach the situation——

Does the hon. Gentleman recollect any proposals put forward by his right hon. Friend the Member for Cambridgeshire (Mr. Pym) for the immediate solution of these problems?

Yes, and what my right hon. Friend said was confirmed by my right hon. Friend the Member for Grantham (Mr. Godber). All along we have said that we were prepared to improve the common agricultural policy. Indeed, we had already embarked upon it.

What has disappointed me about the debate is the prejudice that there has been, especially from the Government benches, about the Common Market and the policy that it is following. A number of the misrepresentations made about what is happening in Europe must be corrected.

The hon. Member for Argyll (Mr. MacCormick) spoke about the CAP producing very little to help Scottish producers. He may not be very close to the agricultural industry. Apparently he does not realise the opportunities which have been given to Scottish beef producers to sell their produce in Europe. Does he not know the extent to which Scottish producers and meat firms have already taken advantage of our presence in Europe? The hon. Gentleman may not believe that there are advantages, but many people in Scotland have availed themselves of those advantages.

The right hon. Member for Battersea, North (Mr. Jay) was wholly one sided in his remarks. He spoke about the beef mountain. He used the word "mountain" again and again. He does not realise apparently that the so-called beef mountain is equivalent to about three days' supply of beef in Europe. That is the kind of misrepresentation that is liable to go out from this House unless it is corrected.

The right hon. Gentleman also spoke about wheat stocks. He spoke entirely in terms of the future about production in the EEC and in terms of crops which have only just been sold. He spoke with no knowledge of the coming summer and the harvest that we shall have. He spoke against the fact that it is common knowledge that by the end of the summer, given our present consumption of wheat, we shall have a month's supply in stock. If that leads to the surplus that the right hon. Gentleman says it will, he is not treating the facts of the situation fairly.

If the right hon. Gentleman looks at the situation carefully, he will see that in many ways the policy of the Common Market has benefited British consumers. It has benefited them in terms of bread, The world price of wheat has risen considerably in past years but, instead of having to pay £110 per ton, British millers have been able to buy wheat at £65 per ton as a result of our being members of the EEC.

The Danes have been drawing a subsidy of £50 per ton on their bacon which has benefited the British consumers to the extent of about 2p a lb. A similar situation applies to butter. If we had not been members of the Common Market and had had to rely instead on the world supplies of butter, British consumers over the last year or so would have been paying about 2p a lb. more. Contrary to what the right hon. Gentleman was seeking to imply, therefore, the Common Market has protected the consumer in Britain from the effects of these world prices. How right were my hon. Friends the Members for Derbyshire, West (Mr. Scott-Hopkins) and Salisbury (Mr. Hamilton) to say that we should not listen to the one-sided story put forward by the right hon. Gentleman.

I will not give way because I have purposely kept my remarks short tonight in response to the appeal from Mr. Speaker.

Order. The hon. Member does not wish to give way and he should not be pressed at this hour.

Is it in order for the hon. Member to make a number of false statements and attack me and not give way?

Order. I do not know whether the right hon. Gentleman is rising on a point of order or not. I do not think that his remark was suitable.

The right hon. Gentleman was not even in his place when I got to my feet.

Another point which he ignored—and this criticism applies equally to the Minister—was when he persisted in referring back to the deficiency payments system. He must remember that that policy operated at a time of large quantities of cheap freely-available food throughout the world. It was against that background that the policy was successful. When the supply situation began to change the deficiencies of the system were shown up, revealing difficulties for both producer and taxpayer.

Only a week ago the Minister said in London that we were being too smug about world food supplies. He said that we could no longer look forward to food being freely available as it had been in the past. I hope therefore that he will not base his policies on the same assumptions and conditions which obtained 10, 15 or 20 years ago. The situation has changed.

I cannot understand the right hon. Gentleman's total prejudice against the CAP and intervention buying. What is wrong with storage? If the American Government had not been prepared during the years of surplus to store grain, what a different situation would have existed. It is a good principle of housekeeping that there should be storage from time to time. The Common Market system is not only one of intervention buying, it is basically a system of the managed market. It is basically a system towards which the Minister moved when he was the Minister of Agriculture in a former Labour Government. Surely he recalls the first Act that he put through the House in that capacity, the Cereals Marketing Act 1965? It gave the Home-Grown Cereals Authority the power to buy up cereals. Does he not remember when his Government introduced minimum import prices for cereals, which was another aspect of the managed market system? In spite of all that he has gone all out, to suit the prejudices of his party over the Common Market, to attack the very things a Labour Government were prepared to support.

Even when he went to Brussels the right hon. Gentleman agreed to increase intervention prices. He agreed to 8¾ per cent. overall, 4 per cent. on cereals, 8 per cent. on milk, 7 per cent. on sugar and 20 per cent. on skimmed milk powder. Why has he singled out beef from this and not treated it in the same way as other commodities?

The right hon. Gentleman ignores the fact that in the past few years, when the Opposition were in power, there was much more confidence and we moved towards a system of a managed market, and away from a system of complete dependence on deficiency payments. During our period in office we not only increased the prosperity of agriculture but also the confidence of those in the industry.

This can be shown in a number of ways. For instance, in terms of income or end product there was an increase of 15 per cent. during our three-and-a-half years in office as against an increase of only 5 per cent. during Labour's six years in office. In terms of agricultural earnings there was a 66 per cent. increase during our three-and-a-half years compared with a 38 per cent. increase during Labour's six years. In terms of formation of capital within the industry the increase was 134 per cent. in our three-and-a-half years as against 64 per cent. during Labour's six years.

By whatever standard one applies, there is no doubt that under our policy there was much more confidence and much more prosperity in the industry than during Labour's previous period in power. Nowhere was this more obvious than in relation to breeding and the store producer. One of the great successes of our policy was that the prosperity was reflected back to the roots of the industry, to those who produce the raw material for the rest of the industry.

All we have had from the right hon. Gentleman today is the promise of a long-term plan. He has completely ignored the fact that by his single act in Brussels, by removing the bottom support out of the beef market, he will have destroyed confidence more than by any other act. We have never denied that some features of the CAP had to be improved. My right hon. Friend the Member for Grantham mentioned that. The Minister must realise that he cannot expect to replace what has been lost simply by a calf subsidy, which will admittedly help some people but does not meet the immediate cash crisis facing those who are now having losses in beef production.

The right hon. Gentleman offers a long-term plan. We were offered a long-term plan in 1965. Near the end of his previous term in office, after the 1969 price review and after four years of the plan, the Farmer and Stockbreeder called the plan the greatest let-down since 1920. After the 1970 price review the industry's economic development committee asked what confidence could there be in the plan, as home production had not so far come up to expectation.

That happened during the right hon. Gentleman's previous long-term plan. Therefore, how much confidence can we have this time? He has done nothing to replace the bottom which he has taken out of the beef market. He has failed to come forward with an alternative and thus gives the farming industry little hope for the future.

The right hon. Gentleman has done nothing to meet the current critical situation regarding losses now being faced. We want action, not activity, and we call for action from the right hon Gentleman tonight.

My right hon. and hon. Friends have spoken of the cash crisis facing beef, pig and other livestock sections of the industry. I do not intend to go into further figures on how serious this is, but if it is serious for producers, how much more serious is it for consumers? Considering the much higher level at which calf slaughterings are running now compared with a year ago, I ask the Minister to reflect that the high price of beef in the first quarter of 1973 followed a high level of slaughterings in the first quarter of 1971.

We are also seeing a decline in the sow herd population which could reach 15 per cent., representing 2½ million fewer pigs, 160,000 tons less of pig products and about £85 million worth more meat to be imported. There has been a report from a leading manager of a meat retail company with 15,000 shops that the price of beef to the consumer could rise by about 60 per cent. unless something is done to restore confidence in the industry.

The industry is in a serious state and this will have its effect on the consumer. The producer is being let down by the Government and, as sure as night follows day, it is the consumer who will be let down next.

9.36 p.m.

Like many agricultural debates, this one has been predictable. I congratulate the Opposition on having at last found their agricultural grousing voices. It must have been a considerable strain on them over the nine months or so before the General Election to keep quiet in the face of a developing crisis.

Before developing that theme, however, I should congratulate very sincerely three hon. Members who have today made excellent maiden speeches—the hon. Members for Dorset, West (Mr. Spicer), Braintree (Mr. Newton) and Bute and North Ayrshire (Mr. Corrie). Each of their constituencies, I gather, is the loveliest and finest in the country. I also liked their tributes to their predecessors. I am rapidly getting the impression that all the good men have left here. The speeches of those three hon. Members were lucid and well-informed and we all look forward to hearing them also on subjects other than agriculture.

My hon. Friend the Member for Brigg and Scunthorpe (Mr. Ellis), who has returned to the House, made what I suppose one would call a half-maiden speech. He has lost none of his old vigour. I remember very well a debate on factory farming in which he produced a visual aid which rather surprised the House.

The speech of the right hon. Member for Cambridgeshire (Mr. Pym) disappointed me. I began to get the impression during it that in the right hon. Gentleman's eyes my right hon. Friend the Minister of Agriculture was a member of the Provisional IRA. He really exaggerated—[HoN. MEMBERS: "No."] Most hon. Members who are complaining about what I am saying have not heard most of the debate. The aggressive nature of the right hon. Gentleman's speech proclaimed a measure of uneasy conscience. He had other commitments at the time, but there is no doubt that the situation which we are facing did not start on 1st March 1974.

The right hon. Gentleman must appreciate what we have had to put up with. The previous Minister of Agriculture, the right hon. Member for Grantham (Mr. Godber), made a speech outside the House of which I have managed to get a copy. He rightly drew attention to something that I hope the hon. Member for Pembroke (Mr. Edwards) will realise. The hon. Member seemed to think that everything in agriculture was dark and disastrous and that there was not a gleam of hope anywhere.

If the right hon. Member for Cambridgeshire reads the White Paper produced by his Government, he will find that there are certain parts of agriculture which have done very well. The hon. Member for Devon, West (Mr. Mills) drew attention to the fact that things were not quite as bad as all that. I think he was slightly embarrassed by the preceding speech.

The point made at paragraph 30 of the White Paper "The Annual Review of Agriculture 1974" was that was the speed of the General Election. It was prepared by the previous administration and signed by agriculture Ministers of the present Government.

The White Paper said:

The right hon. Gentleman has quoted me, and we had better get the facts right.

The right hon. Gentleman has referred to me. What I said in that speech was that of the three commodities which were really affected—I referred to milk, beef and pigmeat—we had dealt with milk and we were going to deal with the other two in the Community review, and therefore we had dealt with the issue.

I have not quoted the right hon. Gentleman yet. All that I quoted was what was said in the Price Review White Paper. The right hon. Gentleman is right, and what I said is right. He did nothing about pigs and nothing about beef. He was going to do something about them. But he did something about milk. The hon. Member for Stratford-on-Avon (Mr. Maude) said that many of us on the Government side of the House represent industrial urban areas. I do not. I represent one of the finest dairying areas in Britain, the Kilmarnock area of Ayrshire.

When did the right hon. Member for Grantham do something about milk? It was at the very last minute, and the announcement was made after the General Election had been announced. But when did the farmers first come to see him about it? It was in about Sep- tember. It was September, October, November, December, January and then February before anything was done. Here are the Opposition, all standing bawling and shouting at us today, and how long have we been in office?

I can tell the hon. Lady that we are not going out tonight.

Let the Opposition be honest about it. They pinpointed the problem which was developing and getting worse, but they did nothing about it. In relation to milk, what did they do? The right hon. Member for Grantham mentioned the long negotiations. He did not do it in two weeks. The previous Government made up their minds to do something about it probably in December. It took them over two months probably to work it out with the farmers, and then the right hon. Gentleman had to square it with his Common Market colleagues how they would manoeuvre within the restrictions of the Market. The right hon. Gentleman did not do it in two weeks. What happened? He did not raise the price of milk. All the arguments today are that the end price should rise and that the consumer is the person who should pay the real price.

But the Tory Government did not do that. They used the milk fund. A considerable part of it was considered—I think it was 1½p per gallon—as a retrospective payment. When the announcement was made during the election we were given no indication whether the price would rise, but meantime there was no price increase. Hon. Members were sensitive to the fact that price increases are important to the consumer, especially at a time like this.

How, then, can hon. Members argue that we were wrong when we had our negotiations and decided not to increase the price of beef to the consumer but to step in and inject £38 million into agriculture at the breeding stage? Tory hon. Members are wrong and unfair about this. If they think it was all that easy, what was the right hon. Member for Grantham going to do? This was admitted by him. Hon. Members opposite were going to negotiate. It is interesting to quote what the right hon. Gentleman said about his previous negotiations. It took him two months. He said that he then got something which was satisfactory for the people of Britain from the point of view of the consumer and farming. That was for the year which ended in all the disasters. According to him, everything was fine as a result of his negotiations.

What the farmers are saying and what Opposition Members are saying is "Let us get back to the guarantees that were." The Tory Government got rid of them last year and replaced them with the new system which did not work for beef and has not worked for pigs. The right hon. Gentleman was going to put it right in the new negotiations, but if he had succeeded what would have happened? What would be the prices that farmers would be getting today? It has been worked out. I ask right hon. and hon. Members opposite to work it out. The right hon. Gentleman practically admitted it, because he said this evening that if it had been carried through the position today would be that beef producers would not be making profits, for the simple reason that the prices would not be very much higher than the present intervention price.

It has been said that intervention is merely storage. Intervention to raise prices is the creation of scarcity. If people could pay the higher prices, they would pay. Surely we learned last year that consumer resistance forced prices down. I agree with the hon. Member for Argyll (Mr. MacCormick) who objected to the suggestion that intervention was the way out. It is not. Consumers will resist. If hon. Members had gone to the public clearly at the election, they should have been saying "We will increase the prices of beef and milk". But they did not.

On the Continent, even with the very considerable increases that have been gained, the desired prices have not yet been reached. That is why we have 75,000 tons of beef in store. It should be remembered that not everyone gets the intervention price. A person gets the intervention price only if he has the storage in which to put the beef. There are areas in Britain where there are no cold stores.

The Common Market is finding that out today. We are all negotiators now, I am glad to hear. Everybody should now be supporting my right hon. Friend in his appreciation that there is no solution even in what Tory Members were putting forward. They are objecting to suggestions that we are prepared to continue to view the situation as we have done already. What we have done should be remembered. The £38 million cannot be laughed at.

I am grateful to the right hon. Gentleman for giving way. The sole point I wish to put to him is that if intervention is wrong, something else must be put in its place. That is what the Government have failed to do. We were operating the intervention system and would have continued to do so. The fact is that the right hon. Gentleman is not prepared to put anything in its place. That is why the farmers are so disturbed.

The hon. Member for North Angus and Mearns (Mr. Buchanan-Smith) said that one benefit that had been given to us by the Common Market was that we could sell our beef at Common Market prices on the Continent. There are already links with the Common Market which will continue. I am not as pessimistic as some hon. Members suggest. I do not think that there will be a complete collapse in prices.

When the hon. Gentleman was tackled about milk, some months ago, he said that he could not be expected to predict what the feeding cost would be in the autumn. The evidence now available shows that it is not that the cost is rising—[ Interruption. ] It is all very well for hon. Gentlemen to talk, but the speech by my right hon. Friend the Member for Battersea, North (Mr. Jay). There is a change in world prices that could be of benefit to us in this situation. My right hon. Friend said that we must review and keep watching what is happening in the market. Is not that the right thing to do?

I heard a suggestion today that we should not have annual price reviews. That is nonsense. We should continue with them. We need more than simple little adjustments. What has happened in the past year shows that we need annual price reviews.

Right hon. and hon. Gentlemen on the Opposition side must appreciate that, as a result of decisions taken by them regarding CAP, we are subject to certain restrictions on what we can and cannot do. What we want to do may conflict—[ Interruption .] I wish that hon. Gentlemen who are now shouting had been here earlier. [HON. MEMBERS: "We were."] There are many points that I still have to answer. The Opposition must face the fact that they have not presented any alternative to what my right hon. Friend has done.

The right hon. Member for Grantham and the hon. Member for Argyll referred, as did other hon. Members, to fertiliser and lime subsidies. The decision not to have these subsidies when the present scheme expires was made by the previous administration. The National Farmers' Union has approached us about this matter. There is a lot in what the hon. Member for Argyll said about retaining good quality in the soil. My right hon. Friend is considering that matter.

Representatives of the Scottish NFU saw me yesterday and my hon. Friend has been seeing the union recently too. This is not a matter for instant decision. I remind the hon. Member for Argyll that assistance for land regeneration and improvement is still available under the Farm Capital Grants Scheme. I also remind the hon. Member for Mid-Bedfordshire (Mr. Hastings), who referred to glasshouses, that grants under that scheme are still available for horticulture.

My hon. Friend the Member for South Ayrshire (Mr. Sillars) spoke about sheep, with particular emphasis on wool. I can understand the desire of sheep producers that the guaranteed price for wool should be increased by more than 1p per lb, which was the increase made by the previous Government at the price review. My hon. Friend must appreciate that the present situation is the result of a profit-loss sharing agreement that has been in operation for a long time. Producers have received substantial payments in excess of £40 million from the Exchequer. I have taken a note of the point that my hon. Friend raised and I shall discuss it with my right hon. Friend.

The right hon. Member for Fermanagh and South Tyrone (Mr. West) spoke about tomatoes and the judgment that has been made by the European Court of Justice—[ Interruption. ] It is unfair of Conservative hon. Members to interrupt when a Northern Ireland Member has raised a point of considerable importance. I think that the right hon. Gentle- man is entitled to a reply. I am conscious of the problem that he raised—I appreciate he was the Minister for Agriculture in Northern Ireland—when he referred to the transitional compensatory grant paid on Irish tomatoes. We have also very much in mind the problems of the growers in the Clyde Valley. We recognise the possible consequences of the higher export subsidies that are likely to result from the ruling of the European Court of Justice. The Commission has not yet put forward any proposals that take account of that decision. We are considering the matter carefully. In our approach we shall bear in mind the comments that the right hon. Gentleman has made.

I want to answer the point that has been made about slaughtering. The right hon. Member for Cambridgeshire and other hon. Members have referred to the recent level of slaughtering of cows, and young calves and pigs from the breeding herds. The sow and boar slaughterings are higher than they were a year ago but they are lower than they were earlier this year before the Government provided the special subsidy. The number of cows and bulls being slaughtered is also lower than earlier this year when the previous administration was in office. The number is higher than last year.

The calf slaughtering figures are similar to those of earlier years, discounting the low figures for the past year or so when many calves of good quality were kept for beef.

We have been talking about confidence and Conservative right hon. and hon. Members today by their exaggeration have probably done more to destroy it—[ Interruption .] It must be recollected that in these few weeks we have already taken action on beef, pigs, horticulture and various other matters. It ill becomes Conservative right hon. and hon. Members who left us such a dismal inheritance now suddenly to complain.

Question put , That this House do now adjourn:—

The House divided: Ayes 268, Noes 279.

Division No.20.]

AYES

[9.59 p. m.

Adley, Robert

Gibson-Watt, Rt. Hon. David

Mayhew, Patrick (RoyalT'bridge Wells)

Aitken, Jonathan

Gilmour, Sir John (Fife, E.)

Meyer, Sir Anthony

Alison, Michael (Barkston Ash)

Glyn, Dr. Alan

Mills, Peter

Allason, James (Hemel Hempstead)

Godber, Rt. Hn. Joseph

Miscampbell, Norman

Amery, Rt. Hn. Julian

Goodhart, Philip

Mitchell, David (Basingstoke)

Ancram, M.

Goodhew, Victor

Moate, Roger

Archer, Jeffrey (Louth)

Goodlad, A.

Money, Ernie

Atkins, Rt.Hn.Humphrey (Spelthorne)

Gorst, John

Monro, Hector

Awdry, Daniel

Gow, Ian (Eastbourne)

Moore, J. E. M. (Croydon, C.)

Baker, Kenneth

Gower, Sir Raymond (Barry)

More, Jasper (Ludlow)

Balniel, Rt. Hn. Lord

Gray, Hamish

Morgan, Geraint

Banks, Robert

Griffiths, Eldon (Bury St. Edmunds)

Morgan-Giles, Rear-Adm.

Beith, A. J.

Grimond, Rt. Hn. J.

Morris, Michael (Northampton, S.)

Bell, Ronald

Grist, Ian

Morrison, Charles (Devizes)

Benyon, W.

Grylls, Michael

Morrison, Peter (City of Chester)

Biffen, John

Gurden, Harold

Neave, Airey

Biggs-Davison, John

Hall, Sir John

Neubert, Michael

Boardman, Tom (Leicester, S.)

Hall-Davis, A. G. F.

Newton, Tony (Braintree)

Body, Richard

Hamilton, Michael (Salisbury)

Nicholls, Sir Harmar

Boscawen, Hon. Robert

Hampson, Dr. Keith

Nott, John

Boyson, Dr. Rhodes (Brent, N.)

Hannam, John

Onslow, Cranley

Braine, Sir Bernard

Hastings, Stephen

Oppenheim, Mrs. Sally

Bray, Ronald

Hayhoe, Barney

Page, Rt. Hn. Graham (Crosby)

Brewis, John

Heath, Rt. Hn. Edward

Pardoe, John

Brittan, Leon

Henderson, Barry(Dunbartonshire, E.)

Parkinson, Cecil (Hertfordshire, S.)

Brocklebank-Fowler, Christopher

Heseltine, Michael

Pattie, Geoffrey

Brown, Sir Edward (Bath)

Higgins, Terence

Percival, Ian

Bruce-Gardyne, J

Holland, Philip

Peyton, Rt. Hn. John

Bryan, Sir Paul

Hooson, Emlyn

Pink, R. Bonner

Buchanan-Smith, Alick

Hordern, Peter

Price, David (Eastleigh)

Budgen, Nick

Howe, Rt.Hn. Sir Geoffrey(Surrey, E.)

Pym, Rt. Hn. Francis

Bulmer, Esmond

Howell, Ralph (Norfolk, North)

Quennell, Miss J. M.

Burden, F. A.

Howells, Geraint (Cardigan)

Raison, Timothy

Butler, Adam (Bosworth)

Hurd, Douglas

Rathbone, Tim

Callaghan, Rt.Hn.James(Cardiff, S.E.)

Hutchison, Michael Clark

Rawlinson, Rt. Hn. Sir Peter

Carlisle, Mark

Iremonger, T. L.

Redmond, Robert

Carr, Rt. Hn. Robert

Irvine, Bryant Godman (Rye)

Rees, Peter (Dover & Deal)

Chalker, Mrs. Lynda

James, David

Rees-Davies, W. R.

Channon, Paul

Jenkin, Rt.Hn.P. (R'dgeW'std&W'fd)

Reid, George

Churchill, W. S.

Jessel, Toby

Renton, Rt.Hn.SirDavid(H't'gd'ns're)

Clark, A. K. M. (Plymouth, Sutton)

Johnston, Russell (Inverness)

Renton, R. T. (Mid-Sussex)

Clark, William (Croydon, S.)

Jones. Arthur (Daventry)

Ridley, Hn. Nicholas

Clarke, Kenneth (Rushcliffe)

Jopling, Michael

Ridsdate, Julian

Cockcroft, John

Joseph, Rt. Hn. Sir Keith

Rifkind, Malcolm

Cooke, Robert (Bristol, W.)

Kaberry, Sir Donald

Rippon, Rt. Hn. Geoffrey

Cope, John

Kellett-Bowman, Mrs. Elaine

Roberts, Wyn (Conway)

Cormack, Patrick

Kimball, Marcus

Ross, Stephen (Isle of Wight)

Corrie, John

King, Evelyn (Dorset, S.)

Rossl, Hugh (Hornsey)

Costain, A. P.

King, Tom (Bridgwater)

Rost, Peter (Derbyshire, S.-E.)

Crouch, David

Knight, Mrs. Jill

Royle, Sir Anthony

Crowder, F. P.

Knox, David

Sainsbury, Tim

Davies, Rt. Hn. John (Knutsford)

Lane, David

St. John-Stevas, Norman

d'Avigdor-Goldsmid, Maj.-Gen.James

Langford-Holt, Sir John

Scott-Hopkins, James

Dean, Paul (Somerset, N.)

Latham, Michael (Melton)

Shaw, Giles (Pudsey)

Dixon, Piers

Lawrence, Ivan

Shaw, Michael (Scarborough)

Dodds-Parker, Sir Douglas

Lawson, Nigel (Blaby)

Shelton, William (L'mb'th, Streath'm)

Dodsworth, Geoffrey

Le Marchant, Spencer

Silvester, Fred

Drayson, Burnaby

Lester, Jim (Beeston)

Sims, Roger

du Cann, Rt. Hn. Edward

Lewis, Kenneth (Rtland & Stmford)

Sinclair, Sir George

Durant, Tony

Lloyd, Ian (Havant & Waterloo)

Skeet, T. H. H.

Dykes, Hugh

Loveridge, John

Smith, Cyril (Rochdale)

Eden, Rt. Hn. Sir John

Luce, Richard

Smith, Dudley (W'wick&L'm'ngton)

Edwards, Nicholas (Pembroke)

McAdden, Sir Stephen

Spence, John

Emery, Peter

MacArthur, Ian

Spicer, Jim (Dorset, W.)

Ewing, Mrs.Winifred(Moray&Nairn)

MacCormack, Iain

Spicer, Michael (Worcestershire, S.)

Fairgrieve, Russell

McCrindle, R. A.

Sproat, Iain

Fenner, Mrs. Peggy

Macfarlane, Neil

Stainton, Keith

Fidler, Michael

MacGregor, John

Stanbrook, Ivor

Finsberg, Geoffrey

McLaren, Martin

Stanley, John

Fisher, Sir Nigel

Macmillan, Rt Hn. M. (Farnham)

Steel, David

Fletcher, Alexander (Edinburgh, N.)

McNair-Wilson, Michael (Newbury)

Steen, Anthony (L'pool, Wavertree)

Fletcher-Cooke, Charles

McNair-Wilson, Patrick (New Forest)

Stewart, Donald (Western Isles)

Fookes, Miss Janet

Madel, David

Stewart, Ian (Hitchin)

Fowler, Norman (Sutton Coldfield)

Marshall, Michael (Arundel)

Stodart, Rt. Hn. A. (Edinburgh, W.)

Fraser, Rt.Hn.Hugh (St'fford&Stone)

Marten, Neil

Stokes, John

Freud, Clement

Mather, Carol

Stradling Thomas, J.

Fry, Peter

Maude, Angus

Tapsell, Peter

Galbraith, Hn. T. G. D.

Maudling, Rt. Hn. Reginald

Taylor, Edward M. (Glgow, C'cart)

Gardiner, George (Reigate&Banstead)

Mawby, Ray

Temple-Morris, Peter

Gardner, Edward (S. Fylde)

Maxwell-Hyslop, R. J.

Thatcher, Rt. Hn. Mrs. Margaret

Thomas, D. E. (Merioneth)

Wakeham, John

Winstanley, Dr. Michael

Thomas, Rt. Hn. P. (B'net, H'dn S.)

Walder, David (Clitheroe)

Winterton, Nicholas

Thorpe, Rt. Hn. Jeremy

Walker-Smith, Rt. Hn. Sir Derek

Wood, Rt. Hn. Richard

Townsend, C. D.

Walters, Dennis

Woodhouse, Hn. Christopher

Trotter, Neville

Watt, Hamish

Worsley, Sir Marcus

Tyler, Paul

Weatherill, Bernard

Young, Sir George (Ealing, Acton)

van Straubenzee, W. R.

Wells, John

Younger, Hn. George

Vaughan, Dr. Gerard

Whitelaw, Rt. Hn. William

Viggers, Peter

Wiggin, Jerry

TELLERS FOR THE AYES:

Waddington, David

Wigley, Dafydd (Caernarvon)

Mr. Walter Clegg and

Wainwright, Richard (Colne Valley)

Wilson, Gordon (Dundee, E.)

Mr. Paul Hawkins.

NOES

Abse, Leo

Eadie, Alex

Kinnock, Neil

Allaun, Frank

Edelman, Maurice

Lamble, David

Archer, Peter (Warley, West)

Edge, Geoff

Lamborn, Harry

Armstrong, Ernest

Edwards, Robert (W'hampton, S.E.)

Lamond, James

Ashley, Jack

Ellis, John (Brigg & Scunthorpe)

Latham, Arthur (CityofW'mlnsterP'ton)

Ashton, Joe

Ellis, Tom (Wrexham)

Lawson, George(Motherwell&Wishaw)

Atkins, Ronald (Preston, N.)

English, Michael

Leadbitter, Ted

Atkinson, Norman

Ennals, David

Lee, John

Bagier, Gordon A. T.

Evans, Fred (Caerphilly)

Lestor, Miss Joan (Eton & Slough)

Barnett, Guy (Greenwich)

Evans, Ioan (Aberdare)

Lewis, Ron (Carlisle)

Barnett, Joel (Heywood & Royton)

Evans, John (Newton)

Lipton, Marcus

Bates, Alf

Ewing, Harry (St'ling, F'kirk&G'm'th)

Lomas, Kenneth

Baxter, William

Fernyhough, Rt. Hn. E.

Loughlin, Charles

Benn, Rt. Hr. Anthony Wedgwood

Fitch, Alan (Wigan)

Loyden, Eddie

Bennett, Andrew F. (Stockport, N.)

Fitt, Gerard (Belfast, W.)

Lyon, Alexander W. (York)

Bidwell, Sydney

Flannery, Martin

Lyons, Edward (Bradford, W.)

Bishop, E. S.

Fletcher, Ted (Darlington)

McCartney, Hugh

Blenkinsop, Arthur

Foot, Michael, Rt. Hn.

McElhone, Frank

Boardman, H. (Leigh)

Ford, Ben

MacFarquhar, Roderick

Booth, Albert

Forrester, John

McGuire, Michael

Boothroyd, Miss Betty

Fowler, Gerry (The Wrekin)

Mackenzie, Gregor

Boyden, James(Bishop Auckland)

Fraser, John (Lambeth, Norwood)

MacLennan, Robert

Bradley, Tom

Freeson, Reginald

McMillan, Tom (Glasgow, C.)

Broughton, Sir Alfred

Galpern, Sir Myer

McNamara, Kevin

Brown, Bob(Newcastle upon Tyne, W.)

Garrett, John (Norwich, S.)

Madden, M. O. F.

Brown, Hugh D. (Glasgow, Provan)

Garrett, W. E. (Wallsend)

Magee, Bryan

Buchan, Norman

George, Bruce

Mahon, Simon

Buchanan, Richard(G'gow, Springbrn)

Gilbert, Dr. John

Mallalleu, J. P. W.

Butler, Mrs.Joyce (H'gey, WoodGreen)

Ginsburg, David

Marks, Kenneth

Callaghan, Rt.Hn.James(Cardiff, S.E.)

Golding, John

Marquand, David

Callaghan, Jim (M'dd'ton & Pr'wich)

Gourlay, Harry

Marshall, Dr. Edmund (Goole)

Campbell, Ian

Graham, Ted

Mason, Rt. Hn. Roy

Cant, R. B.

Grant, George (Morpeth)

Mayhew, Christopher(G'wh, W'wch, E)

Carmichael, Neil

Grant, John (Islington, C.)

Meacher, Michael

Carter, Ray

Griffiths, Eddie (Sheffield, Brightside)

Mellish, Rt.Hn.Robert

Carter-Jones, Lewis

Hamilton, James (Bothwell)

Mikardo, Ian

Castle, Rt. Hn. Barbara

Hamilton, William (Fife, C.)

Millan, Bruce

Clemitson, Ivor

Hamling, William

Miller, Dr. M. S. (E. Kilbride)

Cocks, Michael

Hardy, Peter

Milne, Edward

Coleman, Donald

Hart, Rt. Hn. Judith

Mitchell, R. C. (S'hampton, Itchen)

Colquhoun, Mrs. M. N.

Hatton, Frank

Molloy, William

Concannon, J. D.

Healey, Rt. Hn. Denis

Moonman, Eric

Conlan, Bernard

Heffer, Eric S.

Morris, Alfred (Wythenshawe)

Cook, Robert F. (Edinburgh, C.)

Hooley, Frank

Morris, Charles R. (Openshaw)

Cox, Thomas

Horam, John

Morris, Rt. Hn. John (Aberavon)

Craigen, J. M. (G'gow, Maryhill)

Howell, Denis (B'ham, Small Heath)

Moyle, Roland

Crawshaw, Richard

Huckfield, Leslie

Mulley, Rt. Hn. Frederick

Cronin, John

Hughes, Rt. Hn. Cledwyn (Anglesey)

Murray, Ronald King

Crosland, Rt. Hn. Anthony

Hughes, Robert (Aberdeen, North)

Newens, Stanley (Harlow)

Cryer, G. R.

Hughes, Roy (Newport)

Oakes, Gordon

Cunningham, G. (Islington, S&F'sb'ry)

Hunter, Adam

Ogden, Eric

Cunningham, Dr. John A. (Whiteh'v'n)

Irvine, Rt. Hn. Sir A. (L'p'I, EdgeHill)

O'Halloran, Michael

Dalyell, Tam

Irving, Rt. Hn. Sydney (Dartford)

O'Malley, Brian

Davidson, Arthur

Jackson, Colin

Orbach, Maurice

Davies, Bryan (Enfield, N.)

Janner, Greville

Orme, Stanley

Davies, Denzil (Llanelli)

Jay, Rt. Hn. Douglas

Ovenden, J. F.

Davies, Ifor (Gower)

Jeger, Mrs. Lena

Owen, Dr. David

Davis, Clinton, (Hackney, C.)

Jenkins, Hugh (W'worth, Putney)

Padley, Walter

Deakins, Eric

Jenkins, Rt. Hn. Roy (B'ham, St'fd)

Palmer, Arthur

Dean, Joseph (Leeds, W.)

John, Brynmor

Park, George (Coventry, N.E.)

de Freitas, Rt. Hn. Sir Geoffrey

Johnson, James (K'ston uponHull, W.)

Parker, John (Dagenham)

Delargy, Hugh

Johnson, Walter (Derby, S.)

Parry, Robert

Dell, Rt. Hn. Edmund

Jones, Barry (Flint, E.)

Pavitt, Laurie

Dempsey, James

Jones, Dan (Burnley)

Peart, Rt. Hn. Fred

Doig, Peter

Jones, Alec (Rhondda)

Perry, Ernest G.

Dormand, J. D.

Judd, Frank

Phipps, Dr. Colin

Douglas-Mann, Bruce

Kaufman, Gerald

Prentice, Rt. Hn. Reg

Duffy, A. E. P.

Kelley, Richard

Price, Christopher(Lewisham. W)

Dunn, James A.

Kerr, Russell

Price, William (Rugby)

Dunnelt, Jack

Kilroy-Silk, Robert

Radice, Giles

Dunwoody, Mrs. Gwymneth

Rees, Rt. Hn. Merlyn (Leeds, S.)

Skinner, Dennis

Walker, Terry (Kingswood)

Rhodes, Geoffrey

Smith, John (Lanarkshire, N.)

Watkins, David

Richardson, Miss Jo

Snaps, Peter

Weitzman, David

Roberts, Albert (Normanton)

Spriggs, Leslie

Wellbeloved, James

Roberts, Gwilym (Cannock)

Stallard, A. W.

White, James

Roderick, Caerwyn E.

Stewart, Rt. Hn. M. (H'sth, Fulh'm)

Whitehead, Phillip

Rodgers, George (Chorley)

Stoddart, David (Swindon)

Whitlock, William

Rodgers, William (Teesside, St'ckton)

Stonehouse, Rt. Hn. John

Willey, Rt. Hn. Frederick

Rooker. J. W.

Stott, Roger

Williams, Alan (Swansea, W.)

Rose, Paul B.

Strang, Gavin

Williams, Alan Lee (Hvrng, Hchurch)

Ross, Rt. Hn. William (Kilmarnock)

Strauss, Rt. Hn. G. R.

Williams, Rt.Hn. Shirley(H'f'd&St'ge)

Rowlands, Edward

Summerskill, Hn. Dr. Shirley

Williams, W. T. (Warrington)

Sandelson, Neville

Swain, Thomas

Wilson, Alexander (Hamilton)

Sedgemore, Bryan

Thomas, Jeffrey (Abertillery)

Wilson, Rt. Hn. Harold (Huyton)

Selby, Harry

Thorn, Stan (Preston, S.)

Wilson, William (Coventry, S.E.)

Shaw, Arnold (Redbridge, Ilford, S.)

Tierney, Sydney

Wise, Mrs. Audrey

Sheldon, Robert (Ashton-under-Lyne)

Tinn, James

Woodall, Alec

Shore, Rt. Hn. Peter(S'pney&P'piar)

Tomlinson, John

Woof, Robert

Short, Rt. Hn. E. (N'ctle-u-Tyne)

Torney, Tom

Wriggiesworth, Ian

Short, Mrs. Renée (W'hamp'n, N.E.)

Tuck, Raphael

Young, David (Bolton, E.)

Silkin, Rt. Hn. John (L'sham, D'ford)

Varley, Rt. Fin. Eric G.

Silkin, Rt.Hn.S.C.(S'hwark, Dulwich)

Wainwright, Edwin (Dearne Valley)

TELLERS FOR THE NOES

Sillars, James

Walden, Brian (B'm'ham, Ladywood)

Mr. Walter Harrison and

Silverman, Julius

Walker, Harold (Doncaster)

Mr. Joseph Harper.

Question accordingly negatived.

On a point of order, Mr. Speaker. I wonder whether you would inquire into the fact that it is now becoming very common for the right hon. Gentleman the Leader of the Opposition to call out some of his troops on strike and to keep them on full pay instead of on supplementary benefit?

If the hon. Member thinks that resembles a point of order, he may have diminished his chances of catching my eye in future.

Parliamentary Commissioner for Administration

That Mr. Sydney Bidwell be discharged from the Select Committee on the Parliamentary Commissioner for Administration and that Mr. Maurice Orbach be added to the Committee.—[Mr. Walter Harrison. ]

Petition

Northern Ireland Executive

I have to present to this honourable House a petition signed by 313,000 electors in Northern Ireland. The petition is presented to the House personally:

Firstly, that we the petitioners being electors of Northern Ireland arc unalterably opposed to and do not accept or recognise the validity of the Northern Ireland Executive appointed by the Secretary of State on 31st December 1973.

Secondly, that on 8th March 1973 a referendum was held in Northern Ireland, the result of which demonstrated that the vast majority of the citizens of Northern Ireland wished to remain within the United Kingdom.

That since then it is proposed to set up a Council of Ireland in which representatives of a foreign state will exercise executive powers over the citizens of Northern Ireland.

That since then it is proposed to set up an All-Ireland Court in which members of the judiciary of a foreign state will exercise judicial powers over citizens of Northern Ireland.

That your petitioners fiercely reject such proposals being a repudiation of the spirit of the said Referendum and in derogation of the principle implicit in Section 1 of the Northern Ireland Compensation Act 1973.

Wherefore your petitioners humbly pray that the Northern Ireland Executive be dissolved there being no reasonable basis within Section 2 of the N.I. Constitution Act 1973 for Government by Consent; that the wish expressed by the electorate in the said referendum should be honoured; that the honourable the Commons should refuse to give effect to the proposals hereinbefore referred to and should for ever be jealous guardians of the civil rights of all the citizens of Northern Ireland.

And your petitioners, as in duty bound, will ever pray.

I suggest to this honourable House that this petition tonight should reflect and interpret the General Election results and that they should not be interpreted by a bogus BBC opinion poll.

To lie upon the Table.

Adjournment

Motion made, and Question proposed, That this House do now adjourn.—[Mr. Thomas Cox. ]

National Health Service Reorganisation

10.20 p.m.

I am grateful for this opportunity to raise the issue of health reorganisation in Northumberland and I do so now, knowing that there are decisions yet to be made, in the hope of a full discussion which is publicly reported that will find the decisions to be well made and prevent decisions against the interests of my constituency.

I had the opportunity to make my maiden speech in a debate last December in which the reorganisation of the Health Service was discussed. I was happy to make common cause with right hon. and hon. Members now in the Government in hostility to a scheme which I regarded as cumbersome, bureaucratic and highly unrepresentative It is now something of a bed of nails for the Secretary of State.

I do not blame the Secretary of State for the main deficiencies of the scheme. I appreciate that it is difficult now for her to change it fundamentally without causing even greater uncertainty and lack of morale than already exists amongst health service staff affected by the changes. I hope that there will be opportunities in the future for fundamental changes to be made which will make the service more democratic than the present reorganisation does. For the moment, however, I shall be content if it can be well applied. It is not being satisfactorily applied in Northumberland.

There is no area in England more unsuited to the basic scheme of the previous administration's health service reorganisation than Northumberland. It is a very large area. It is larger than the Greater London area as a whole. It has a scattered population and it includes communities which are separated not just by a few miles but by as much as 100 miles. It contains within it no district general hospital and it is and always has been interdependent with Tyneside and New- castle for many medical services. It depends on hospitals in Newcastle for a great many medical services. It also provides Newcastle with medical services and has within its area a number of psychiatric hospitals of considerable size as well as other specialist hospitals. This situation will continue, and it would be ludicrous to contend that any major reorganisation could make the health authority area independent. It would be foolish to do so, and that is widely recognised.

The nature of the area, the geographical differences and the scattered population should have led to its being divided into three separate districts. I have sent to the Secretary of State a comparison with areas in Wales which are very comparable to our own area in terms of population, medical resources and the distribution of those resources. I hope that the Under-Secretary will refer to that comparison and explain the logic of the thinking of his Department and of the Welsh Office in giving so much better treatment to an area in Wales than has been given to Northumberland.

Since this is not being done, there is a less unsatisfactory solution which could be adopted. It is to divide the area up with separate community health councils and separate management teams. That is what I argued for in December, and it is that for which I am now pressing to divide the three separate geographical parts of Northumberland, the north, the south-east and the west of the county, into separate management areas each with its own community health council.

It may be desired to make a further subdivision to provide a separate management team for the psychiatric hospitals, in which case there would be four separate management areas, but there must be three geographical ones, with the possible addition of a fourth for the psychiatric hospitals. I do not think that without this the interests of the north of the county will be dealt with and provided for adequately. It would be ridiculous to suppose that the hospitals in Berwick could be administered from a centre 50 miles away, as will happen if what I propose is not done.

The community health council decision has been taken already. We have lost that battle in the campaign to get our area adequately served. The decision has already been taken to have only one community health council in Northumberland. That decision was supported by the Northumberland County Council, which at first sight looks significant, but it must be remembered that the Northumberland County Council area is exactly the same as the area of the Northumberland Area Health Authority, so it has a vested interest in believing that it is an ideal and suitable area for administration. If the Minister had heard the views of the district councils he might have reached a different conclusion. The old Northumberland Regional Hospital Board said that there should be three community health councils.

The process of getting the appointments to the health council which has been set up was strangely conducted. Advertisements appeared in the Press on 21st February for voluntary bodies which wished to make nomination. The closing date was 28th February. I, the Minister and everybody else here, was otherwise engaged in that period, and it is not unreasonable to suppose that many people in public life outside were otherwise engaged, too. It was an odd date and a very short sequence of time in which to secure adequate consultation with voluntary organisations.

There are many doubts about whether the community health councils will be able to achieve much in the new health service. I welcome the initiative which I understand the Minister has taken in trying to look wider for the secretariat for the community health councils than the original idea of the last Government that retired National Health Service officers would be the best people for the job.

A much more important question, and one on which a decision must be taken, concerns the substantive management scheme which will be subject to a decision by the Department later in the year. Are we to get a separate management team for north Northumberland, and will the Minister give an assurance that we will not be lumped in with areas further south in a very large and altogether unwieldy management structure covering the whole of the area north of Tyneside? All the indications so far are the other way, and there are already indications that the management patterns which are being developed before any decision has been taken are cutting across the idea of separate provision for north Northumberland. I am most anxious to know whether the Minister has satisfied himself that the decision to be taken later in the year has not been pre-empted and that it will still be possible to create a separate management team.

We must be clear what the consequences will be if that is not done. The consequences of centralisation are very serious. It will lead to the creation of a top-heavy machine, which is remote from the patient. For example, it seems increasingly likely that we shall finish up with more nurses behind desks in administrative headquarters miles away than in some of the small hospital units in the area. We shall create a bureaucratic structure far larger than was necessary to run the health service before reorganisation took place, and that structure will eat money. The difficulty which the Minister faces and which we all recognise in a time of economic stringency is that it is not open to him to disburse large sums in order to make the reorganisation work more effectively. To create a more expensive administrative structure in that situation is hardly sensible.

I fear that the top-heavy structure of the kind which may develop will be extremely expensive and therefore detrimental to patient services. If there is administrative centralisation and we lose the people working within the individual communities the fear will be that centralisation of the medical services will be the next step. We have already experienced problems with a physiotherapy service in Wooler, which was introduced because under the old system we had people on the ground who could take decisions. It has had to be curtailed as a consequence of local government and health service reorganisation. Decisions in each case are now taken miles away, and the service, which had the merit of preventing patients and physiotherapists from having to make a long journey to a distant centre, was curtailed because the reorganised bodies are less capable of taking decisions on the spot than were their predecessors.

The fear for the future is that more and more hospital patients will be taken to centres like Ashington, which is totally unsuitable to serve as a district general hospital for my constituency. Its natural purpose, for which it is well fitted, is that of a community hospital for its own area, and it would not be appropriate to try to make it a centre for areas like mine, which is at a great distance from Ashington and inaccessible by public transport. The way to deal with the situation is by development at Alnwick and Berwick, coupled with continued use of the community health services.

I am perturbed by attitudes which are current in the Minister's Department, although they are not his direct responsibility. A constituent of mine was recently taken to a specialised hospital in County Durham, where he was seriously ill. He was eventually brought back to Berwick and is now being nursed at home. He is an applicant for a disability pension and must therefore be examined. The Department was unable to examine him while he was conveniently available in a hospital, a short distance from Tyneside, yet the Department now reckons that this sick man must make a return trip of 140 miles to be examined in Newcastle. This attitude to remote areas, if carried further into the new system, will make impossible the lives not only of patients but of those who tend and visit them.

Another consequence of centralisation is that it means a loss of administrative and clerical jobs from areas where the demand for jobs is very high, and where the standard of recruits for administrative and clerical work is also high. Present health service staff in my constituency are very worried about the threat to their jobs, Because of this insecurity, many are seeking posts outside the service, and many are scanning the "Situations Vacant" columns of the newspapers with anxiety.

It should be recognised that it will be difficult to build up and reconstruct a service even on the best principles if the Minister loses the best people because of the present insecurity. He must remember that, whereas one can make organisational changes with relatively little inconvenience in an urban area, it is no use saying to someone in a rural area, "We have reorganised and we have a job for you," when it is in Morpeth, 50 miles away. People cannot easily shift from a job in their own home centre to one in a centre 50 miles away. It is interesting that even those concerned in patient services, who are expected to feel less of the impact of reorganisation, are suffering great insecurity. I am disturbed that, so far as I know, no one in Northumberland has yet been confirmed in post.

The Northumberland area has suffered a massive reduction in community participation in the health services. We have lost many hospital management committees and the involvement in the management of the National Health Service of people who worked in and knew and understood the community. The community health council decision has not helped. It has produced one council for the whole county, on which we have limited representation. Our representation on the area health authority and on the regional body is also very limited. If the Minister considers the matter carefully, he will recognise that the geographical and political balance within the county is far from satisfactorily represented by the appointments made at regional and area level. We have lost a large number of people who were committed to the provision of community health services within their area and who knew and understood the difficulties of their area. This is a great loss to the National Health Service.

I look for an assurance that the trend to centralisation will be resisted and that the Minister will not allow the health service in north Northumberland to be deprived of its own separate management team to serve the former Alnwick and Berwick hospital management areas. The basis for this, as I said, is a three-management team structure, with a possible fourth for the psychiatric hospitals. But north Northumberland must have a separate one.

Labour spokesmen were right to criticise health reorganisation. They must now show that they are prepared to act on those criticisms and at least make the best of a bad job.

10.34 p.m.

The hon. Member for Berwick-upon-Tweed (Mr. Beith) made very powerful criticisms of the National Health Service reorganisation—criticisms which I broadly share. He has fairly and rightly pointed out that in criticising the previous Government's reorganisation of the health service, the Liberal Party and the present Government share a great deal of common ground. I look forward to the continuation of Liberal Party support in this area.

We have made clear our dissatisfaction with the reorganisation of the health service. But, as the hon. Gentleman fairly pointed out, we took office with only three weeks to go before reorganisation was due to take place. As my right hon. Friend the Secretary of State has explained to the House, she felt—I think, rightly—that her first responsibility was to the patients, and that for us suddenly to turn round this substantial reorganisation would have led to considerable disruption, and the only people to suffer would have been the patients—apart from the general morale of the staff.

We decided, therefore, with the general agreement of many people both inside and outside the House, that it was wholly impracticable for us to defer the date of operation of the reorganisation, but we have said that we shall make changes. I hope that before the end of this month we shall be presenting proposals in order to ensure more democracy in the National Health Service.

This is a difficult area, because we have to work within existing legislation, but there is room for considerable changes. These changes will be aimed mainly at trying to make the health service more responsive to the community which it serves. It can only be a somewhat hybrid democratic form of reorganisation; but many people have felt for some time that local authorities are not adequately represented.

Most of my own fundamental criticisms of the reorganisation of the health service come back to the structure of local government. If we look at the root problems with which we are faced in the reorganisation of the health service, we see that many of them come back to what was decided in the reorganisation of local government by the then Government, now the Opposition. For instance, one has only to mention—as the hon. Gentleman did—the problem of districts. We have health districts which are not coterminous with the second-tier local government districts. The all-important function of housing, for example, is completely divorced from any coterminous boundaries with health. This matter causes me great concern. At present there is no way of having representation from district councillors who have a contribution to make to the health service.

I have considerable sympathy with the hon. Gentleman's criticisms of the degree of centralisation which has occurred, particularly in some rural areas. In my area of Devon, which is a county of substantial size, health is now to be dealt with in an area covering the whole county. I recognise many of the problems in Northumberland.

The hon. Gentleman's major criticism is that it has been decided that Northumberland is to be only a one-district authority, despite the fact that there are other local government districts. He knows that this decision was made by the previous Government. He has also criticised the fact that there will be—he thinks—only two geographical management sectors within the new Northumberland Area Health Authority, which is a single district area health authority.

I was not suggesting that the hon. Gentleman has decided that there will be only two sectors. I hope that this question is still open.

If one believes in decentralisation one must also accept that there must come a certain amount of devolution of decision making on the bodies which one establishes.

I have said that we hope to make changes and arrive at a more democratic structure, but, fundamentally, the management of the area health authorities is not one for Ministers to lay down. We may criticise the structure and dislike its undemocratic nature, but it is not for us to lay down a pattern of management.

I have noted what the hon. Gentleman has said and I shall make sure that the officers of my Department discuss this matter with both regional and area health authorities in the areas. I shall watch the situation, but I feel that the area health authority should be left to decide the pattern of districts and particularly, perhaps, the management sectors within its area.

The hon. Gentleman raised a number of other matters. He was worried about membership. I think that we shall shortly be able to do something to help him in that respect. He was also concerned about the fact that there is to be only one community health council in Northumberland. He has mentioned that we are seeing far less community participation in the running of the health service than ever previously.

A consequence of having only one district health authority for Northumberland is that there is only one community health council. I attach considerable importance to the community health councils.

The hon. Gentleman was generous enough to mention the withdrawal of that part of the circular which referred to the appointment of secretaries of community health councils. I think that the secretary of a community health council has a very important part to play. We are discussing with the staff side the aspects of the new guidelines, which I hope we shall be able to issue shortly, because I believe that community health councils should appoint their secretaries as soon as possible. It is a very important job. It could decide the success or failure of the community health council.

When we consider the whole question of democracy in the health service we shall pay particular attention to the ways in which we can strengthen the rôle of community health councils and involve them more and ensure that they have the powers and scope for research. We shall enable them to work together with other health councils to share experience across the country.

The problems we face in the health service are ones of a vital need to let the existing structure settle down. We have just gone through this reorganisation period. I am constantly receiving justified complaints from hon. Members on both sides of the House to the effect that certain people have not yet been appointed—that some key officers are not yet in post. This poses considerable limitations on the pace at which we can go to make changes.

It is my wish that as far as possible we should decentralise some of the decisions that are currently made by the Government in Whitehall. It is much easier to agree, and I think to get acceptance on both sides of the House, that we should decentralise decisions if we are decentralising them to a body which is more democratic and more responsive. The two are closely linked.

Equally, I do not think that the democratic control over the National Health Service which resides here and which is the responsibility of the Secretary of State can be lightly given up.

One of the greatest problems we face in the health service—it is the same in Northumberland as elsewhere—is inequalities in care and provision. Here the rôle of the central Government is fundamental in trying to redress the inequalities, particularly in ensuring, at time of scarce national resources, that we are selective in the areas to which we are able to give financial help. We need to be able to discriminate and also to be seen to be discriminating fairly. This means a rôle for central Government which is somewhat different from that of the Department of Health and Social Security over the years.

We need to develop a great number of techniques of monitoring and a capability of identifying areas of special need. This also goes with the decentralising of the day-to-day decision making, a strengthening of the Department's rôle in terms of maintaining minimum standards and redressing inequalities. This is how we see our whole broad challenge on reorganisation.

The hon. Gentleman questioned the way in which the community health council was appointed, and the length of time. In my view, the regional health authority's advertisements in local newspapers in Northumberland specified a closing date which was not in accordance with the regulations and the Department's guidance, in that it allowed too short a time for receipt of applications from voluntary organisations. In doing so I have no doubt that the authority had the commendable objective of establishing the community health council as quickly as possible.

I am, however, informed that the authority kept open the list of voluntary organisations for about two months and that during that time over 100 replies were received. The local Council of Social Service is at present co-ordinating a local conference on the allocation of seats on the community health council. So I hope that the time lag has meant that anyone who wished to be represented in the voluntary organisations has been able to secure representation.

I hope that the community health council will play an active part in representing consumer feeling in Northumberland. If it does so, it is perfectly at liberty to draw to the attention of the area health authority and the regional health authority many of the points the hon. Gentleman mentioned tonight. Indeed, that comes within their terms of reference. They have not the power to make changes, but they have the power to bring to the attention of the authorities not only any changes that they may wish to make, but the views of the district councils.

The hon. Gentleman said that it was not surprising that Northumberland County went along with a one-district arrangement for the area health authority, but it is still open to the district councils to make their representations. If the area authority, in the light of experience, decides that there should be a change, it is open to it to make such a change.

I have taken the view that throughout the country any changes to be made in the patterns of districts or in boundaries should, as far as possible, be made after an initial period of settling down. We must consider not only the patients but the staff. We must accept that this is the pattern. Let us live with it for a time—it may be six months; I suppose that is a fair minimum period of experience—and then it will be open to area health authorities, in consultation with regional health authorities, to make changes if, in the light of experience, they think they are necessary. If experience in Northumberland dictates a change, I hope it will feel free to make the change.

The hon. Gentleman took me into the dangerous waters of making comparisons with Wales. He will be aware that the responsibility for health services in Wales is not my right hon. Friend's but that of the Secretary of State for Wales. I recognise that Northumberland, because of its geography and the distances to be travelled, poses considerable problems. I hope that reorganisation will settle down and will win the acceptance of the people and that the community health council will play an extremely active part.

The specific point about management is for the area health authority. I am sure that, on reflection, the hon. Gentleman will agree about that, but it is legitimate for him to make the point. I have pledged to ensure that officials in my Department will take note of what he said and will discuss the matter with both the regional and the area health authorities.

Does the hon. Gentleman recognise that he has the opportunity and obligation to decide on the management structure when it is submitted to him later in the year? Will he take these points into account when he is required to make a decision?

I shall stick by my views. I shall pay great attention to what is decided by the people who write—the area health authority. I should require exceptional reasons for overriding the views of local people. We cannot have it both ways. If we genuinely believe that, as far as possible, people should run the day-to-day management, we must live with the results. They may often go against us. But if central Government mean business about decentralising the day-to-day decision-making they must restrict their tendency to itchy fingers, and to getting themselves involved. Central Government can then concentrate on some of the more essential functions, such as the overall monitoring of the health service.

I shall look at the points made by the hon. Gentleman. I am grateful to him for drawing the attention of the House and of people in Northumberland to the problems that must be faced in reorganisation of the health service.

On a point of order, Mr. Deputy Speaker. Is it in order to compliment you on presiding over the first sitting of this House in the present Parliament when the Opposition Front Bench were serious in their intent?

No, I do not think that would be in order.

Question put and agreed to.

Adjourned accordingly at eleven minutes to Eleven o'clock.