HC Deb 02 December 1964 vol 703 cc456-8
30. Mr. Prior

asked the Minister of Agriculture, Fisheries and Food what is to be the home producers' share of the bacon market under the market sharing agreement for the coming year; what this represents in tonnage of bacon; and how this compares with the figure for the current year.

Mr. Peart

There will be no change for 1965–66 in the basis on which shares under the Bacon Understanding are formally allocated. We have taken the view, as have other parties to the Understanding, that there has been insufficient experience of its operation to justify a change at this time. What this will represent for the home producer in terms of minimum tonnage cannot yet be stated, because the minimum total quantity has yet to be decided. Moreover, the opportunity to meet demand in excess of the minimum quantity may arise next year, as it has been doing so far this year, through allocations from the reserve.

Mr. Prior

Is the Minister aware that his reply will cause great disappointment amongst home bacon producers? Is he further aware that when he spoke from this side of the Chamber he gave the impression that he would do everything he could to expand home production, and is not this answer in direct contradiction to what he then said?

Mr. Peart

The hon. Gentleman knows that what he says does not meet the facts. As I have stated, the minimum total quantity has yet to be decided,

Mr. Soames

Is not the Minister aware that there was specifically provided in the agreement a provision that at the Review we would be able to alter the home producer's share of the market upwards? Is he not further aware that as our pig production is rising it would be highly satisfactory if we could get a greater share of the marker? Is it not the fact that the imposition of the 15 per cent. Surcharge made relationships between Her Majesty's Government and the Danish Government so difficult that it has inhibited him from altering the rate?

Mr. Peart

I am sorry, but the right hon. Gentleman is quite wrong. The imposition of the surcharge has nothing to do with this at all. I felt, and I think that he, too, would feel, that in regard to the agreement we concluded, as it had been running only for a period of seven months, the evidence showed conclusively that the percentage he negotiated was, perhaps, satisfactory in the circumstances. We can look at it again later, but I am anxious to make a decision on the minimum total quantity.

Mr. Bessell

Is the Minister aware that there have been wide reports that about 8 per cent. of the total home market in bacon is supplied by Poland; and that this has caused considerable dissatisfaction to home producers, particularly as Poland is not one of the E.F.T.A. countries, or a Commonwealth country?

Mr. Peart

We are here dealing with a bacon-sharing agreement that was negotiated by my predecessor, and which I supported in principle. I think that it is a right agreement, but we will always consider any factor that may affect home production.