HC Deb 28 April 1938 vol 335 cc302-5
58. Mr. Holdsworth

asked the Minister of Agriculture what arrangements have been made, in the event of any loss being incurred by the Potato Marketing Board in connection with its recent speculative activities in the potato market, to recover such losses from the growers of potatoes in this country and in what proportion?

The Minister of Pensions (Mr. Ramsbotham)

I have been asked to reply. Any loss that the board might incur in disposing of the surplus potatoes which they recently purchased would be defrayed from the funds of the board.

Mr. Holdsworth

Do I understand that the funds of the board come from the producers, and would not the losses be distributed over the producers?

Mr. Ramsbotham

The board's funds are derived mainly from the annual levy on producers (5s. per acre), excess levy, penalties for infringements of the scheme, voluntary contributions from authorised merchants (21s. per head), and interest on investments.

Sir Ernest Shepperson

Is it not clear that the potatoes purchased by the board have now risen 10s. above the price given by the board; and is not the question rather not one of how the loss is to be met, but of how the profits are to be distributed? Is it not a fact that these purchases of potatoes by the board have been of very great benefit to the producers in this country as well as the consumers?

Mr. Holdsworth

Is it not a fact that the statement made by the hon. Gentleman is perfectly correct, because the statement that the board were going to buy created a fictitious demand and put up the price?

59. Mr. Holdsworth

asked the Minister of Agriculture whether he is aware that the Potato Marketing Board, in addition to controlling the number of approved potato merchants in this country, now seek to act as merchants themselves on a large scale; and whether he will review this development with the object of its prohibition or limitation, in view of the important social consequences involved?

Mr. Ramsbotham

I would refer the hon. Member to the reply given to my hon. Friend the Member for St. Pancras, South West (Sir G. Mitcheson) on 13th April.

Mr. Holdsworth

Will the hon. Gentleman impress upon the Minister of Agriculture that it is not the desire of this House that any board should usurp the proper functions of a private trader licensed by the board?

Mr. T. Williams

Is the hon. Gentleman not aware that hon. Members in all parts of the House, except a very small part, are anxious that this rationalisation should go on?

Mr. Ramsbotham

I am sure that if the hon. Member will refer to the reply he will be completely reassured.

60. Captain Arthur Evans

asked the Minister of Agriculture what steps have been taken by the Potato Marketing Board to obtain the approval of the growers in this country for the proposed amendment of the potato marketing scheme which seeks to give the board full powers to carry out speculative purchases and sales of all grades of potatoes, whether surplus or not, without any limitation; and whether he is satisfied that the intention of this amendment has been made clear to those concerned before seeking their approval?

Mr. Ramsbotham

In accordance with the provisions of the Agricultural Marketing Acts, the Potato Marketing Board published to registered producers in February last certain proposed amendments to their scheme, some of which related to the board's powers of buying and selling potatoes. Registered producers were entitled to demand a poll on the question whether the amendments should be proceeded with, but my right hon. Friend has been informed that no such request was made to the board. With regard to the last part of the question, the amendments as published to producers were accompanied by an explanatory note in which reference was made to the board's proposals regarding the purchase and sale of potatoes, and there is no reason to think that the intentions of the amendments are not fully understood by those concerned.

Mr. Holdsworth

Is the House to understand that, provided the producers of potatoes decide on a system which will alter the whole economic system of this country, the House is not to pay attention to the basis of private enterprise?

Mr. T. Williams

Is there any reason why the producer should not sell potatoes?