HC Deb 30 November 1939 vol 355 cc250-3
Mr. T. Williams

(by Private Notice) asked the Minister of Food when it is proposed to institute the purchase, on behalf of the Government, at prescribed prices, of fat cattle, sheep and pigs offered for sale at collecting centres?

The Chancellor of the Duchy of Lancaster (Mr. W. S. Morrison)

The arrangements for the control of livestock marketing, including the purchase of the stock by the Ministry of Food, and for controlling the distribution of home-killed meat have been under close examination. Certain adjustments are being made which will take some weeks to complete, and as, moreover, the Government do not consider it desirable to introduce control during the period of the Christmas trade, it is proposed to postpone the introduction of control until the New Year. The Government recognise, as stated in the announcement made on 11th November, that the present system of partial control under the Maximum Prices Orders, which was only designed as an interim measure, is giving rise to increasing difficulties in the marketing of fat stock. In these circumstances, and having regard to the adequate supplies of fresh meat which are expected to be available over the Christmas season, it is proposed that the restrictions on marketing and the control of prices of fat stock shall be removed forthwith until the date on which full control is to be established, which will be announced in due course, and that the control of prices of home-produced meat, both wholesale and retail, shall be removed from midnight on Sunday, 3rd December. Before full control is introduced appropriate adjustments in the schedule of initial prices to be paid for fat stock as published on 11th November will be made after consultation with producers' organisations to take account of seasonal trends and other relevant factors.

Mr. Williams

Is the right hon. Gentleman satisfied that home-produced supplies are sufficient to avoid excessive prices being charged to the consumer and to prevent depleted supplies; and what control if any is to be exercised over the distribution and the fixing of the prices of imported meat?

Mr. Morrison

In answer to the first part of the question, I think there are sufficient supplies of home-killed meat to make this course advisable. Secondly, with regard to imported meat, the control of prices now in operation will be maintained.

Mr. A. V. Alexander

Is the Minister aware that he is freeing the market in circumstances in which he has not got a normal supply because of the shortage of imports, and that, in consequence, prices are bound to rise immediately as from Monday next; and is it not the case that up to the present, retail prices have been kept within an Order, although wholesale prices have been rising and that no consultation whatever has taken place before this decision, with the retail section of the trade?

Mr. Morrison

As I have often informed the House, control of prices by maximum price Orders without control of supplies at the same time, is very often illusory, and I am quite sure that in many cases butchers are paying for home-killed meat prices in excess of the maximum price Order while those who produce it are limited to that amount. I think it is better, in view of the supply situation, not to persist in a system of control which is illusory but to wait until we can introduce full control, including control of supplies and thus have a proper check on the prices of meat.

Mr. Alexander

But is it not a fact that the Minister has probably less than half the normal supply of imported meat to put on the market this Christmas, and that if he is going to free the market for home-killed meat, he is bound to show a substantial rise in prices?

Mr. Boothby

Will my right hon. Friend answer two questions—first, what is the actual date on which full control is to be introduced, and, secondly, whether, in introducing that full control of the deadweight price, he will bear in mind the position of the producer of high-grade cattle in this country?

Mr. J. Morgan

Does the right hon. Gentleman intend to include cows in the new Order? Will the price of cows be controlled under full control?

Mr. Morrison

As regards the question of my hon. Friend the Member for East Aberdeen (Mr. Boothby), I cannot state the exact date at this moment, but I hope it will be early in January. As regards prices of fat cattle, I expect that the usual seasonal increase of prices of the best quality cattle will take place, but in view of the supply situation as a whole, I do not think any excessive rise is to be anticipated.

Mr. T. Williams

Do we understand from the right hon. Gentleman's original reply that he is going to control the wholesale price of imported supplies and the retail price of that commodity?

Mr. Morrison

Yes, Sir.

Mr. Alexander

In this brief period is the subsidy to be paid in addition to whatever prices are fetched on the open market?

Mr. Morrison

Yes, Sir.

Mr. Alexander

Will pigs be included?

Mr. Morrison

Pigs will be included.

Mr. Henderson Stewart

In order to clear up a misunderstanding, can my right hon. Friend say now whether, when his full control policy comes into effect, there will be a different plan with regard to slaughterhouses than is at present contemplated; in other words, how many slaughterhouses will then be employed?

Mr. Morrison

Yes, Sir. The slaughterhouse side of the scheme has been extensively reviewed, and more slaughterhouses will be employed when the scheme is put into operation than were at first contemplated.

Mr. Attlee

May I ask the Minister when they are going to bring to an end this constant vacillation in policy?

Mr. Morrison

There has been no vacillation. All that we have done is to pay attention to the representations made to us by Members of this House, including many on the right hon. Gentleman's own side. A review of these criticisms and suggestions has necessarily taken time.