HC Deb 25 March 1963 vol 674 cc953-4
55. Sir C. Osborne

asked the Minister of Agriculture, Fisheries and Food if he is aware of the low prices being realised for beef, of the size of the subsidy bill and of the high prices being charged to the housewife; and if he will take steps to protect both the British producer and the consumer.

Mr. Scott-Hopkins

Prices for beef are low and this is affecting the cost of deficiency payments. The producer is, of course, protected by the fatstock guarantee scheme. Retail prices have been reduced in many shops and the opportunity is there for the consumer to take advantage of the low prices.

Sir C. Osborne

Is my hon. Friend aware that, for example, in the Louth cattle market on Friday beef was sold at the average price of 100s. cwt. against a guaranteed price of 168s., that the farmers are dissatisfied, and the housewives, who are paying more money for their beef, and have got to find probably £100 million subsidy? Is it not time to do something about it?

Mr. Scott-Hopkins

My hon. Friend will realise that some of the figures he has given are not exactly accurate. [HON. MEMBERS: "Oh."] I am fully aware of the fact that prices have dropped recently. The fatstock guarantee scheme does not give a guarantee on every individual item sold, but is in general an overall guarantee throughout the year.

Mr. Peart

In view of what the hon. Gentleman has just said in his reply to his hon. Friend, could he give us the figures? It is extremely difficult to get them from the Minister of Agriculture. They have not been forthcoming. Can we have some real figures about prices?

Mr. Scott-Hopkins

Prices on the fatstock market dropped to about 120s., on 20th February, and have gone down further since then.

Mr. Peart

To the housewives?

Mr. Scott-Hopkins

For the housewife there has been a drop in retail shops varying from 2d. lb. to over 6d. lb.

Sir H. Harrison

Is my hon. Friend aware that this is causing great concern to a large number of people, and if the Government's hands are tied by previous trade agreements so that they cannot do anything about it, will he say so on behalf of the Government? If not, can some action be taken?

Mr. Scott-Hopkins

I hope that my hon. and gallant Friend will realise that our hands are not tied. In point of fact, the level of imports of beef this year has not risen appreciably over those of previous years.

Mr. C. Royle

Is not the situation as we see it today due to the ridiculous scheme of deficiency payments, and is it not about time that we overhauled the system of marketing and a better system of marketing were brought into being for the meat trade? What has happened to the Departmental Committee which the Minister appointed on the marketing of meat? When is it going to report?

Mr. Scott-Hopkins

Taking first the last of the three points the hon. Gentleman has raised, I think the Committee will be reporting in the near future.

Mr. C. Royle

When is that?

Mr. Scott-Hopkins

I do not agree with his suggestion that the fatstock guarantee system has not worked well. I think it has worked extremely well, but, as my right hon. Friend said in his statement on the Price Review, we are looking into the existing open-endedness of the whole subsidy and in due course the Government will make proposals.

Sir C. Osborne

In view of the fact that the Minister challenged my figures, which I rather resent, since they were given to me by farmers going to the market on Friday, that the price of beef was 120s. cwt. against a guaranteed price of 168s. cwt., will he please tell the House which of these figures is wrong?

Mr. Scott-Hopkins

I was not challenging the individual figures my hon. Friend gave in connection with his own particular market. I was only drawing attention to the fact that those were not average prices.

Several Hon. Members

rose

Mr. Speaker

We cannot have a debate on a Question to a Minister.