§ 21. Sir Alfred Beitasked the Secretary of State for the Colonies whether the Perishable Goods Marketing Scheme in Cyprus has brought about any reduction in the prices of the goods concerned; whether any municipalities have withdrawn from the scheme, apart from those which refused to participate in it; and, if so, for what reason.
§ Colonel StanleyYes, Sir; average current prices over all markets under the marketing scheme are some 30 per cent. 1988 lower than in the corresponding period of last year. As the answers to the remaining parts of the question are rather long, I will, with my hon. Friend's permission, circulate a statement in the OFFICIAL REPORT.
§ Sir A. BeitIf there have been any withdrawals from this scheme—and no doubt the reply will give details on that point—would it be possible for the Government themselves to consider keeping the scheme going in order to maintain the benefits which it has brought to the people?
§ Colonel StanleyI think that point will be fully dealt with in the answer, which also refers to the two cases where the municipal councils are unwilling to cooperate. There, the Government have put the scheme into operation themselves, and in one case the price fell by 28 per cent. and in the other case by 25 per cent., despite the refusal of the municipal corporations to co-operate.
§ Following is the statement:
§ The purpose of this marketing scheme is to stabilise and reduce the prices which urban consumers have to pay for foodstuffs produced in Cyprus. Of the six municipal councils in Cyprus two, those of Limassol and Famagusta, refused to participate in the scheme on its introduction on the 15th November. The reasons which they gave were explained in my reply to a Question by my hon. Friend on 26th January. The municipal council of Larnaca asked to be released from participation at the end of January. The reasons which the council gave were that the scheme had only stabilised prices without reducing them; that the quality of produce offered for sale had deteriorated; and that, as the producers no longer brought their own produce to market but relied do Government transport, the scheme had resulted in restriction of traffic and trade in the town. Nevertheless the Government was satisfied that it was in the public interest that the scheme should continue in Larnaca. They took over its operation at the beginning of February and since then prices have dropped more than ten per cent. In these circumstances the situation in Limassol and Famagusta was reviewed and it was decided that, as the municipal councils were unwilling to co-operate, the scheme should be extended to these towns 1989 under Government operation. This decision was put into effect in Limassol in February and in Famagusta in March, and prices fell by 28 per cent. in Limassol and 25 per cent. in Famagusta. The intervention of the Government in these cases has been generally welcomed by the public. It is not the case, as has been alleged, that the municipal council of Nicosia has withdrawn from the scheme. They have entered into an arrangement with the Government for simplifying the machinery, but they continue to give the scheme their full support and co-operation.