HC Deb 25 July 1962 vol 663 cc1452-4
4. Mr. Farr

asked the Minister of Agriculture, Fisheries and Food whether, in view of the decline in the quantity of home-produced bacon in the past seven years and the increase in bacon imports by 95,000 tons in the same period, he will now impose a quota on future bacon imports.

Mr. Soames

No, Sir. The home pig producers' return is safeguarded by the Fatstock Guarantee Scheme which relates the guaranteed price of pigs to an annual number of certifications of around 10.5 million. This arrangement was agreed with the farmers' unions in 1961 and takes into account the supply position, the level of home demand and the cost of the deficiency payments to the Exchequer.

Mr. Farr

Would not my right hon. Friend agree that the increase of 100,000 tons in the home consumption of bacon pig, which has occurred in the past eight years and which has been met entirely by foreign imports, is a very unsatisfactory position? Could my right hon. Friend advise me how it is possible for bacon producers to reduce their costs and become more competitive if the market is to continue to be swamped with foreign imports?

Mr. Soames

My hon. Friend talks about the market continuing to be swamped with foreign imports, but I am sure he realises that, if we had endeavoured to alter our import-export trading arrangements with other countries in tune with the movement of the pig cycle, this would not have been to the advantage of this country as a major trading nation.

Sir A. Hurd

Will my right hon. Friend keep in mind the fact that there is a prospect of another 1 million pigs coming forward at home—this despite the disincentive, because we are running at over 10½ million pigs a year? Would it not be well to have a look at the import side of this bacon picture so that we can have a better balance and can give reasonable encouragement to the home producer?

Mr. Soames

Certainly, within our international obligations and responsibilities. As my hon. Friend has pointed out, the national pig herd has increased considerably. Whereas 10.5 million was the figure agreed with the farmers' unions to attract the basic guarantee, it is now upward of 11½ million, about 1 million up on forecast certifications— this despite the disincentive, which has been masked to some extent by the amount of the feed formula which has an important part to play. We shall have to look at the whole question at the next review.

Mr. P. Browne

Does not this show that the moment the Government apply a disincentive in one direction they are bound to get increased production in another? The disincentive with respect to milk last year has now resulted in an increased pig herd. What is my right hon. Friend going to do about it?

Mr. Soames

I do not believe that is the case so far as the pig herd is concerned. We have endeavoured through the flexible price guarantee to have some effect upon the large rises and falls in the pig herd, and I still believe that the basic thought behind the flexible guarantee could make a considerable contribution towards this. The movements in price at the different levels of production have not been sufficient to act as a disincentive.