§ 13. Mr. Morrisasked the Minister of Agriculture, Fisheries and Food the estimated extra cost to the agricultural industry arising from the Budget proposals regarding fuel oil; and what plans he has for the recoupment of these extra costs by the industry.
Mr. VaneThe extra cost is estimated to be about £2 million in a full year. The extra cost will be taken into account in the ordinary way at the 1962 Annual Review.
§ Mr. MorrisIs the Parliamentary Secretary aware that the income of the farming community, both farmers and workers, is far from keeping pace with that of the remainder of the community, as pointed out only last week by the President of the National Farmers' Union? Has it finally been decided by the Government—if they have made one decision at least—that the industry should be sacrificed?
Mr. VaneThe Price Review, which took place only a short time ago, was agreed with the industry. Of course, a Price Review cannot prejudice a general change in the taxation position, which 9 occurs from time to time in the Budget and not necessarily one way only. It can change either way. In this case, the agricultural industry will not be bearing more than its fair share of the duty and it will be doing this with all other users.
§ Mr. HiltonIs the Parliamentary Secretary aware that his reply will be unwelcome in counties such as Norfolk? It is all very well to say that the matter will be taken into consideration at the next Price Review, but that is ten months away. Is the hon. Gentleman aware that this proposal has caused great concern in Norfolk and that farmers and horticulturists are critical of this action? Will not the hon. Gentleman ask his right hon. and learned Friend the Chancellor of the Exchquer to have another look at this proposal, which will be very hard in its effect upon agriculture and horticulture?
Mr. VaneAny upward change in taxation or excise duty is unwelcome, but we must not exaggerate the effect of this tax upon any industry. The hon. Member will remember that there is a well-recognised procedure for holding a special review when cost changes of a substantial nature occur during the year, and we will bear that in mind. The present changes to which the hon. Member has referred certainly do not amount to the sort of change which comes within the purview of the special review procedure.
§ Mr. P. BrowneIs it not true that my right hon. Friend has been encouraging horticulturists throughout the country by way of grants to heat their greenhouses by oil? Does not he think that this tax goes against the encouragement which he has been giving in the past two years?
Mr. VaneOnce again, it is a mistake to exaggerate this small change. Admittedly, horticulturists do not stand to get the benefit from changes in a Price Review. The National Farmers' Union has approached my right hon. Friend about this, and I believe that he is arranging to meet the union shortly.