Eggs

HC Deb 23 May 1957 vol 570 cc1383-6

32. Mr. Nabarro

asked the Minister of Agriculture, Fisheries and Food the estimated cost of the subsidy to producers on shell eggs for the first four months of 1957, and the estimated weekly cost compared with the average cost of the subsidy for the equivalent periods in each of the preceding two years; the estimated total subsidy payable for the current year to egg producers; and what remedial action he proposes to take before the next Price Review.

Mr. Godber

The cost of the subsidy to producers on shell eggs for the first four months of 1957 is estimated at £26.3 million, an average weekly cost of about £1.5 million; the average weekly cost of the subsidy for the corresponding periods of 1955 and 1956 was about £450,000 and £410,000 respectively. The published estimate of the cost of the subsidy on eggs for the current year is £32.7 million, but it is already apparent that this figure is likely to be substantially exceeded. As regards remedial action, I cannot add to the reply which was given by my right hon. Friend on 20th May.

Mr. Nabarro

But would not my hon. Friend agree that there are still eight months to the next Price Review, and that the present rate of subsidy—an average of £1½ million a week—would represent an additional expenditure of about £48 million for eggs? Is there to be a Supplementary Estimate or Vote presented to the House? Surely this state of affairs calls for some remedial action at an early date, and not eight months hence.

Mr. Godber

My hon. Friend may be assured that if there is need for a Supplementary Estimate it will be presented to the House. I am afraid that his figure of £1½ million is not exactly accurate, because the bulk of the subsidy in the last year—and, indeed, for a number of years, I think—has fallen in the first three months of the year. Therefore, the figures need not be so large as my hon. Friend puts them.

Mr. Willey

Does the Parliamentary Secretary remember that a previous Conservative Minister of Food abolished this subsidy?

Mr. Nabarro

It is still £1½ million a week, and that is too much.

33. Mr. Nabarro

asked the Minister of Agriculture, Fisheries and Food what quantities of shell eggs have been exported since 1st January, 1957, to European countries which are signatories of the General Agreement on Tariffs and Trade and what is the total value of such eggs; what element of Government subsidy is inherent in these exports; what discussions with foreign countries are taking place in this matter; and whether he will make a statement.

Mr. Godber

During the first four months of 1957, about 124,000 boxes of 30 dozen eggs valued at £400,000 were exported to European countries which are signatories of the General Agreement on Tariffs and Trade. The best estimate that can be made of the average rate of subsidy on these eggs is approximately Is. 11d. per dozen. Discussions with the Danish Government took place earlier this week and, as already announced, Her Majesty's Government have decided to take steps to prevent serious damage being caused to the normal Danish export markets as a result of the export of eggs which have benefited from the subsidy on home production.

Mr. Nabarro

Does that reply mean that there is to be an estoppel put on the export of eggs by Her Majesty's Government? If it does mean that, surely it will follow that we are to add to the surplus at home and thus to the taxpayers' burden, and further aggravate what I consider to be the appalling figures which my hon. Friend gave in his last reply?

Mr. Godber

I think that my hon. Friend is a little unduly gloomy about this matter, because in actual fact the exports have been reduced very substantially in recent weeks and are now running at a much lower figure. As regards such arrangements as are to be taken, I would assure him that machinery for implementing the Government's decision is being worked out, and will be announced after further consultation with the Danish Government. I do not think that it would be right for me to comment further while those consultations proceed.

Mr. Willey

Could the Parliamentary Secretary indicate in what way he is to implement action consequent upon this admission of incredible folly and stupidity, and waste of the taxpayers' money?

Mr. Godber

Without conceding the last part of the hon. Gentleman's question, I think that it would be wrong for me to comment while these negotiations are going on, A full statement will be made, of course.

Mr. H. Morrison

As some of us are rather mystified by the complications of this business, would the Parliamentary Secretary convey to his right hon. Friend that it would be a good thing if we had a White Paper—that is, if we have not got one—which would really fully explain the economics of this transaction, including the consequences to Denmark and to countries to which we export? Does he not think that the House should be fully informed about this? It does involve very big amounts for the taxpayers.

Mr. Godber

While I would, naturally, consider very seriously anything which the right hon. Gentleman suggested, I do not think that a White Paper is called for. These exports are really very marginal. The numbers exported are really quite small in relation to the total output.

Mr. J. E. B. Hill

Has my hon. Friend's attention been drawn to the reports which are circulating to the effect that British eggs are being exported at a rate of over ½ million boxes a week, and at a cost to the taxpayer of £1½ million a week? Would he not agree that these figures are inaccurate and that, therefore, the reports are very misleading?

Mr. Godber

I am grateful to my hon. Friend. I think that this matter arose in Press reports, which I did see. The figures, of course, are totally wrong. In fact the figure quoted of over ½ million boxes a week is the total output of all our packing stations, nearly all of which goes for home consumption. The same applies to the figure for subsidy of l½ million a week for the export: the total subsidy on exported eggs in the first four months will be, I should say, approximately £400,000.

Mr. Willey

Now that there have been these further discussions, would the hon. Gentleman agree that these eggs were deliberately used to break the Danish prices in the West European market?

Mr. Godber

No, I would not agree.