HC Deb 16 February 1939 vol 343 cc1910-3
Mr. T. Williams (by Private Notice)

asked the President of the Board of Trade whether he can now inform the House of the action he proposes to take in view of the failure of the Empire Meat Council to agree on a recommendation with regard to imports of frozen mutton and lamb from Australia and New Zealand for the current year?

The President of the Board of Trade (Mr. Oliver Stanley)

The United Kingdom Government have considered the situation in all its aspects and have had regard in particular to the facts, (a) that very low prices were obtained for home produced mutton and lamb last year when there was an increase in home production and no corresponding fall in imported supplies; (b) that the prices received for the home product continue unsatisfactory, (c) that a further increase in home production is expected in the current year, and (d) that stocks of frozen mutton and lamb in cold store are abnormally high. On the best estimate that the United Kingdom Government can make it will be necessary, in order to safeguard the stability of the market, that imports from Australia and New Zealand during the current quota year should be 3 per cent. below the level of the preceding year. They have intimated this to the Governments of Australia and New Zealand with the object of ensuring that shipments of frozen mutton and lamb from these Dominions are arranged on this basis. In the case of foreign countries, a further cut of 10 per cent. below the present level of their quota will be imposed. Allowance may have to be made for cases in which shipping space had previously been booked. The Empire Meat Council will continue to function, and will watch closely the effect of the proposed restriction on the markets for the home-killed and imported product respectively.

Mr. Williams

Is it not the policy of the Government to preserve large stocks of food of all kinds in this country? Secondly, can the right hon. Gentleman say whether the further restrictions were advised by the Minister of Agriculture? Thirdly, is he aware that during the past year the price of imported mutton and lamb actually increased while the price of home-produced mutton and lamb was decreasing? Further, does he not think that additional restrictions will impose burdens upon the consumer without in any way assisting the home producer of mutton and lamb?

Mr. Stanley

We certainly desire to have as large stocks as we can in this country, but not at the expense of the home producer. In regard to meat, we must look for the main reserves of meat supply in time of emergency to the animals which are in this country. In regard to the second question as to whether the Minister of Agriculture advised this course, I would say that it is the decision of the Government and my right hon. Friend and I are in full agreement on it. In answer to the hon. Member's third question, although it is true that the price of imported mutton and lamb did not fall as much as the price of home-produced mutton and lamb, there has been some decrease in the last month or two. All these matters were taken into consideration when we came to the conclusion that the restrictions we proposed would in fact benefit the home producer.

Mr. Williams

Is not the right hon. Gentleman satisfied that further restrictions of mutton and lamb will automatically bring about an increase in the price of British-produced mutton and lamb? If so, has his attention been drawn to the question of beef, a parallel problem, and is he aware that restrictions of imports of beef, either from Australia or the Argentine, have in no way helped the home price of British-produced beef?

Mr. Stanley

I cannot agree with the hon. Member. It is true that there has been a decline in the price of beef, but the decline would have been much more serious if it had not been for the attempt to regulate the supply from abroad. The reason why this restriction has been imposed is because the Government think it will assist the home producer.

Mr. W. Roberts

In his statement the right hon. Gentleman referred to an estimate. How does he consider that this estimate of reduced imports will affect the wholesale price of British mutton and lamb?

Mr. Stanley

Obviously, I cannot give an estimate. The estimate of meat is as to what additional supplies are likely to be imported next year, and a restriction on the imported supplies has to be made in order to obviate a glut in the commodity.

Sir Percy Harris

Has the Board of Trade considered the necessity of having large reserves of frozen meat in this country in case of war? Has that been provided for?

Mr. Stanley

I have already answered that question. The Government consider that the best reserve is a flourishing beef and stock industry in this country.

Mr. Leach

The right hon. Gentleman began his reply by quoting paragraph (a). May we now have paragraphs (b) and (c) and others?

Mr. Stanley

I gave four reasons, and it is true that I prefaced the first by (a), but I think the hon. Member's knowledge of the alphabet will assist him in the matter. He will find the reply printed in the OFFICIAL REPORT.