AGRICULTURE (FERTILISERS) (Hansard, 27 June 1956)

§ The Joint Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food (Mr. G. R. H. Nugent)

I beg to move, That the Draft Fertilisers (England, Wales and Scotland) Scheme, 1956, a copy of which was laid before this House on 29th May, be approved. If it is convenient to the House, I will say a word also on the Scheme relating to Northern Ireland. The Scheme before the House provides for the extension of the fertilisers scheme for the next twelve months, beginning on 1st July, on the same basis as the present one. The only administrative change is to bring Northern Ireland into the same scheme of administration as we have had for England and Wales.

654 The rate of subsidy has been increased to take account of the extra £3 million which was awarded in the recent Annual Review of agricultural prices. The effect of that is to make an increase in the rate for nitrogenous fertilisers, which will raise the rate for sulphate of ammonia from £5 16s. to £6 15s. per ton, and the other rates in proportion. The rate is also increased for phosphatic fertilisers. Thus the rate for superphosphate goes up from £5 4s. to £6 15s. per ton and the other rates again in proportion.

The cost in the current year—that is, the fertiliser year now concluding on 30th June—is estimated to run out at about £17 million. The cost for the coming year will be £17 million, plus the £3 million if fertiliser consumption continues to run at the present level. If, as we hope, consumption increases, the cost will run out somewhat higher.

I think that the House will wish to know of the general progress in this matter. Consumption has shown a very satisfactory increase in the last twelve months, the rate of consumption of nitrogen in 1954–55 of 248,000 tons increasing 655 to 276,000 tons for 1955–56, that for phosphates increasing from 334,000 tons to 370,000 tons, and that for potash increasing from 252,000 tons to 275,000 tons. It therefore shows over the whole range of fertilisers a very satisfactory increase, and I think that we can safely say that the higher rates of subsidy have had a large part in that increased usage.

The broad effect in the last harvest of record high yields of all cereal crops is to some extent due to higher fertiliser usage, showing that we are getting good value for this large sum of public money which we are committing for the purpose of fertiliser subsidies. The general picture shows that the subsidies are being a big help to individual farmers, stimulating the use of fertilisers, and at the same time being a big help to the national economy in stimulating bigger crops.