HC Deb 16 April 1946 vol 421 cc2526-30
The Minister of Food (Sir Benjamin Smith)

The Government have recently been reviewing the question of export policy with regard to processed foods. During the war, a small volume of exports of certain foods was maintained, principally to meet programmes submitted by Colonial and other Empire Governments where this country was the normal or most convenient source of supply. It had been hoped that it would be possible, after the termination of hostilities, to allow exports of small but increasing quantities of the more freely available foods, and token quantities even of foods still in restricted supply, such as those containing appreciable quantities of flour, fats and sugar, so that the food industries could begin to play a part in the general expansion of exports, as well as to enable exporting firms to begin to regain a footing in markets which had been lost during the war. Some steps in this direction were in fact taken. With easier shipping conditions, and a reduction of Services demands, exports of certain foods especially to the Colonies began to increase. In December of last year arrangements were put in hand for a strictly limited increase in exports of other foods, such as chocolates, biscuits and soft drinks.

With the deterioration of the world food situation, however, the Government have been obliged to review this policy. It has been decided that, until further notice, export licences will not be issued in respect of a list of processed foods containing more than an insignificant quantity of ingredients which are in short supply. An exception, however, will be made in the case of the approved programmes of exports to Colonies and other Empire countries to which I have already referred and to certain Middle East countries. Requirements of this kind will continue to be met if supported by the Governments concerned, to the extent that the current supply position permits. Experts of certain foods which can be spared for relief purposes will also continue. It is, of course, impossible to stop supplies which are already in transit and a small trickle of exports will continue for a time under export licences already issued. The Government will continue to permit exports in the case of a group of foods where it is clear that exports cannot adversely affect the food situation. This will apply to foods which are in ample supply, such as yeast extracts and various types of cured herrings, and also to such products as mustard, spices, cocoa powder, unsweetened fruit juices, flavouring essences, chicory and coffee, which either have little food value or do not contain significant quantities of scarce materials. It will also include whisky and gin, for the production of which no cereals are now being issued. The export of certain quantities of staple foods, which are subject to Combined Food Board allocation will also continue in cases where the United Kingdom is nominated as a supplier. Export licences will continue to be required for all foodstuffs except for a few non-essentials, and the flow of exports still permitted under the policy I have described will be con- stantly watched. Exports of particular foodstuffs will be restricted or encouraged in the light of prevailing conditions.

The Government regret the necessity for the revision of policy. The immediate loss of trade will probably not exceed one half of one per cent. of the value of all exports in 1946. Nevertheless the recovery of prewar export markets in certain valuable processed foodstuffs will be delayed Moreover, the decision will cause disappointment and inconvenience not only to the manufacturers arid exporters concerned, whose arrangements to resume exports had in some cases reached an advanced stage, but also to importers overseas who had been hoping for a renewal of their customary trade with this country. In special cases, arrangements may be made to enable exporters to meet firm commitments, so far as may be practicable without prejudicing the general policy. But no further commitments for food exports should be entered into, unless they fall within the categories of permissible exports to which I have referred. A statement setting out the particulars of the revised policy in more detail is being issued to trade associations. The Government warn consumers not to expect any perceptible increase in the supplies of processed foods available in shops, as a result of the curtailment of exports. The quantities to be diverted from export are quite insignificant in relation to home consumption.

Mr. Churchill

Could the right hon. Gentleman say, epitomising his statement, whether we are going to get more or get less?

Sir B. Smith

I am afraid the potential recipients are going to get less, and we are going to get less in the form of the amounts of money that will accrue to this country.

Mr. Quintin Hoģģ

In view of the length of the statement, could it not have been rendered down and clarified?

Mr. Kinģ

Is the Minister aware that, in Cornwall, pilchards, which could be processed and exported, are being thrown back into the sea because buyers are un-willing to pay 2s. a stone for them?

Sir B. Smith

I am not aware of that.

Mr. Kinģ

It is so.

Mr. Oliver Stanley

In view of the repeated Government statements that they knew many months ago how serious the food position was, why was not this action taken earlier, thus avoiding the necessity of importers and exporters going on with arrangements which now have to be cancelled?

Sir B. Smith

I agreed to small amounts of commodities—sugar, oils, fats, flour—in December last when everything was more promising—[HON. MEMBERS: "Oh, oh "]—yes, in December—being used to start a trickle of exports. From then, the whole thing had to be started and markets opened up and licences issued on firm markets. It is in the light of the present situation that I have had to say that I cannot any longer permit, for export, things that are in short supply in this country, with this difference, that where during the war we maintained our Colonies as well as we could, that we shall continue to do.

Mr. Stanley

May I ask the right hon. Gentleman how is it possible to reconcile the statement he has made now, that everything in December looked promising, with the speech he made not so long ago trying to prove that, as far back as last October, he knew it was disastrous?

Sir B. Smith

It was promising in the sense that—I speak from memory—there were 8,000 tons of sugar available for this purpose, and the oils and fats position was not nearly what it is today. In fact, we had good stocks, but we had not had the monsoon in India, which resulted in the United Kingdom losing 97,000 tons of groundnuts, and it was in the light of that fact that we had to change over.

Mr. Boothby

Is the Minister aware that there is nothing in the present situation to warrant cutting down the export of canned herrings from this country; and is he also aware that the policy of the Government in cutting down the production of whisky is short sighted in the highest degree because it is the best dollar-earner?

Sir B. Smith

The obvious answer to that is that we have to choose between feeding the people and making whisky. I have taken the liberty of saying to the distillers that I cannot issue any more barley for distilling while the position is what it is.

Sir W. Darlinģ

Is the Minister aware that the principal cereal product of Scotland is oats, and that the exportation of oats to Scotsmen all over the world is a necessity for the maintenance of their character and individuality? Is the Minister also aware that the stopping of the export of porage and Scottish oats will cause great disappointment to Scottish millers, who have looked upon the American and other markets as very valuable indeed?