HC Deb 19 November 1962 vol 667 cc797-8
9. Mr. Bullard

asked the Minister of Agriculture, Fisheries and Food to what extent the heavier imports of French wheat in September and October this year have been a cause of the low market price for the home-grown wheat crop; and whether he will estimate the increased cost to the Exchequer in deficiency payments arising from this cause.

Mr. Soames

Imports of French wheat have not been very large this season, and I do not think that so far they have been a major factor affecting the price of home-grown wheat. As regards the future, the outlook seems more reassuring, because I understand that the French have already made export contracts for a large part of their disposable surplus of wheat and that much of the remainder will be required for animal feed.

Mr. Bullard

Yes, Sir, but will my right hon. Friend put me right over this? I understand that the French wheat has been bought from French farmers for about£30 a ton and sold here for about£20 a ton. Would not it be very unfortunate if, at a time when it is being said that the deficiency payment for home-grown crops is too high, these figures were to be seriously added to by dumping wheat from France, or Belgium, or any of the other European countries?

Mr. Soames

I would not quarrel with the figures given by my hon. Friend. Under a different system of support the market price for wheat in France is higher than in this country, but, as regards dumping to which my hon. Friend referred, it is not only a question of the dumping and the actual price at which the article is sold. It would have to be proved that damage was being done to the home industry.

The figures are that in August and September of this year 14,000 tons of French wheat were imported from France, compared with 17,000 tons the previous year. I have not the October figures, but these are very small in comparison with the total crop.

Mr. Mackie

Does not the right hon. hon. Gentleman realise that it requires only a small quantity of wheat on top of the biggest crop that we have had for a long time to create the conditions to which the hon. Member for Kings Lynn (Mr. Bullard) referred?

Mr. Soames

I am sorry; I did not understand the hon. Gentleman's question.

Mr. Mackie

Between 14,000 tons and 17,000 tons is nothing when we have a surplus in this country anyway. What creates the difficulty is the fact that wheat is coming in, irrespective of the quantity.

Mr. Soames

It is the other way around. It was 17,000 tons last year and 14,000 tons this year. There has been less imported this year than last year, but where our import regulations generally are concerned our system of support is based, first on market prices to the farmers, and secondly, on free imports subject to anti-dumping regulations.