HC Deb 27 July 1961 vol 645 cc580-2
12. Mr. W. Hamilton

asked the Minister of Agriculture, Fisheries and Food if he is aware that food prices in Great Britain today are higher than in some Continental countries, despite the fact that £250 millions a year in subsidies is paid to the farmers; and whether, in view of this fact, he will consider urgent action to investigate the system of food distribution in the United Kingdom.

Mr. Soames

The results of these international comparisons of food prices depend very much on the choice of foods selected for comparison and on the allowances made far differences of quality and service. Generally speaking, food prices in Great Britain are relatively low and I see no need for an investigation of food distribution as a whole.

Mr. Hamilton

Is the right hon. Gentleman aware that the argument continually used by the Government when we criticise farm support prices, namely, that food prices on the Continent are always cheaper than they are here, is flatly contradicted by the facts? Is it not condemnation of Governmental policy that the taxpayer has to foot a bill of £250 million a year, whilst many small farmers are living on less than the average industrial wage, and the consumer gets no benefit? If the taxpayer and the consumer and the farmer are not getting any benefit, can the right hon. Gentleman tell us who is?

Mr. Soames

It is wrong to say that the consumer gets no benefit from the system, which was run by the previous as well as the present Government. It is and has been a great benefit to the country as a whole. We must also bear in mind that while the sum of £250 million is large, it represents only 5 per cent. of the total cost of food in the country as a whole.

Mr. Nabarro

Does not my right hon. Friend agree that, with the sole exception of Norway, prices of all basic foodstuffs in the shops in Britain are lower than in any West European country? Can the House correctly interpret my right hon. Friend's speech yesterday at Llandilo in Carmarthenshire as being a firm assurance to the British farming community that he does not propose in any way to derogate or depart from the provisions of both the 1947 and the 1957 Agriculture Acts?

Mr. Soames

It is very difficult to be too dogmatic about the prices of food in different countries, because of the differ- ent types of foods, the different standards and the varying systems of distribution and so on. What my hon. Friend can read into my speech is that all the Government's assurances about the 1947 and the 1957 Agriculture Acts still remain.

Mr. Peart

Will the right hon. Gentleman also inform his hon. Friend the Member for Kidderminster (Mr. Nabarro) that since the present Government came into power real farm incomes, especially for small farmers, have declined considerably?

Mr. Nabarro

What is the relevance of that to this Question?