§ 56. Sir I. Fraserasked the Minister of Agriculture if he will now say when the February review of prices will be completed and announced
§ 58. Mr. Hurdasked the Minister of Agriculture if he can now announce the results of the February price review
§ At the end of Questions:
Mr. T. WilliamsIn accordance with Section 2 of the Agriculture Act, 1947, the Agriculture Ministers have, in consultation with the National Farmers' Unions of England and Wales, Scotland and Northern Ireland, undertaken a review of the general economic condition and prospects of the agricultural industry. Among the matters 2161 which have been considered are the already announced increases in prices of feedingstuffs as from 1st April and of fertilisers from 1st July. These and other additional costs of production have been considered in relation to the statistics of aggregate farmers' net incomes, as published annually in the White Paper on National Income and Expenditure. The whole review has taken place against the background of the national economic position.
The conclusions which the Government have reached in the light of the review tall into three parts: First, increases are to be made in the prices for milk, fat cattle, fat sheep and fat pigs, with effect roughly from 1st April, 1950. Acreage payments for potatoes and rye will be discontinued as from and including the 1951 harvest, but there will be price increases for main crop and second early ware potatoes. Prices of the other principal crops will not be increased.
Second, from 1st July, 1950, schemes will operate in the United Kingdom to assist farmers in the purchase of fertilisers used for improving grassland and marginal land.
Third, there will be extensions in the near future to the marginal production schemes in England and Wales, Scotland and Northern Ireland, for the purpose of assisting certain classes of the smaller producers of milk, pigs and eggs in respect of their purchases of feedingstuffs, and partly to speed up the rehabilitation of semi-derelict land and other similar activities eligible under the existing marginal production schemes.
The cost of these new or extended improvement grants will in a full year be approximately £7 million. They therefore constitute a major element in the Government's decisions arising from the price review. The leaders of the National Farmers' Unions have indicated their acceptance of these decisions both general and in relation to the separate components which I have outlined. Their concurrence is prompted by a desire to avoid an undue rise in prices to the consumer and to concentrate a substantial part of the relief from additional costs on those farmers most in need of assistance.
2162 The Agriculture Act, 1947, also requires Ministers to determine and announce during 1950 minimum prices for milk, fatstock and eggs in 1952–53 and 1953–54, but by agreement with the Farmers' Unions consideration of this subject has been deferred on the understanding that decisions will be reached within the next two months.
I am circulating with this answer a statement giving the main features of the new price schedules and an outline of the proposals for assisting the purchase of fertilisers and extending the marginal production schemes.
§ Mr. HurdWill the Minister tell the House the sum involved in the elimination of the foodstuffs subsidy, how much of this will fall to be borne by the farmers without recompense and how much will be borne by the housewives in higher prices of milk, eggs and other livestock products?
Mr. WilliamsI think that the hon. Gentleman would do well to read the statement and the schedule of new prices, now available in the Vote Office.
§ Sir I. FraserDo the prices which will be disclosed when we read the OFFICIAL REPORT take into account the rise in production which has followed devaluation and the prospective rise in the cost of freights?
§ Major Sir Thomas DugdaleI think we all agree that before we can pass judgment on the schedule of prices they will have to undergo careful examination by Members in all parts of the House. I would like to ask the Minister one or two questions on this statement: first, who will pay for the increased charges that he has announced in general terms today; second, is he satisfied that the position of producers who cannot grow their own foodstuffs has been amply safeguarded, with particular reference to such specialised producers as poultry producers? As to the announcement of the Minister about the marginal production schemes, is the House to assume that his statement takes no account of the wider schemes for marginal land which were referred to in the Gracious Speech? Can the Minister also say whether the £7 million to which he has referred is to be injected into the marginal production 2163 schemes? Is this supposed to take the place of the fertiliser subsidy, which is to be taken off during this year?
Mr. WilliamsSo far as I can remember the questions, I will answer them beginning with the last one first. The fertiliser schemes will now apply exclusively to grass and all seven-year-old grass land which is ploughed up as distinct from the present-day fertiliser scheme which covers arable land of all kinds. I replied to the question on marginal land in its widest sense in connection with an earlier question. The marginal land referred to in the Gracious Speech is something outside that referred to in this review, which is devoted more or less to marginal production as distinct from marginal land in its widest sense. The question of increased prices is a matter, of course, exclusively to be dealt with by my right hon. Friend the Minister of Food.
§ Mr. J. Langford-HoltCan the Minister tell us whether in reaching this decision the proposed increased rail freights will or will not be implemented?
§ Mr. Oliver StanleyCan the right hon. Gentleman explain what he means by that not very lucid answer?
Mr. WilliamsIf it pleases the right hon. Gentleman, all these matters were taken into account at the February review.
§ Mr. StanleyThen the answer was "yes."
§ Following are the further details: