HC Deb 04 February 1954 vol 523 cc552-3
46. Mr. Beswick

asked the Chancellor of the Exchequer what undertakings he gave to the Australian Government with regard to future United Kingdom purchases of wheat from Australia and the United States of America.

Mr. Maudling

None, Sir. The Australian Government are fully aware that imports of wheat into the United Kingdom are now in private hands.

Mr. Beswick

Does the Economic Secretary say, contrary to what his right hon. Friend said, that the Government are going to leave it at that?

Mr. Maudling

I said nothing contrary to what my right hon. Friend has said. I merely emphasised that imports of wheat into the U.K. are now in private hands.

Mr. Jay

Why do the Government think it sensible to go on spending dollars on North American grain when supplies of this commodity are available in this country and in the sterling area?

Mr. Maudling

When talking of North American wheat one should remember that we purchase six times as much from Canada as from United States. Imports of grain from Australia were slightly more in 1953 than they were in 1952.

Mr. H. Morrison

Is it the policy of the Government to avoid dollar purchases where they can and to buy within the sterling area? If that be so, what are the Government doing to apply that policy in the case of wheat, including Australian wheat?

Mr. Maudling

There are, clearly, advantages in buying in sterling instead of in dollars, but there are also great disadvantages in doing so when large premium prices are involved.

Mr. Beswick

Did not the previous Government urge the Australian Government to increase production of primary foodstuffs? Now that they have done so, are we to see them holding a surplus themselves, while we go to the United States for wheat?

Mr. Maudling

I have beenexplaining that we get six times as much wheat from Canada as from United States.

Mr. Jay

Does the hon. Gentleman not agree that returning the trade to private interests has made it more difficult to save dollars than by not applying the policy at all?

Mr. Maudling

The figures I have quoted show that we have imported slightly more Australian wheat and slightly less American wheat.