HC Deb 02 December 1964 vol 703 cc441-3
10. Mr. Evelyn King

asked the Minister of Agriculture, Fisheries and Food what estimate he has made of the annual gross total of additional costs imposed on farmers as a result of wage increases and import duties; and whether he will take steps to recoup them for this loss in advance of the annual Price Review.

Mr. Peart

In a full year, the estimated additional cost on all products of increases in agricultural wages awarded in the United Kingdom since the 1964 Annual Review is about £16½ million. As regards the temporary import charge, I would refer the hon. Member to the reply given him by my hon. and learned Friend, the Financial Secretary, on 17th November. It is clear, however, that these cost increases are not sufficient to call for a special review under the terms of the agreement reached with the Farmers' Unions in 1956.

Mr. King

Is it not a fact that there used to be one Budget and one Price Review? If we are to have two Budgets, is it not reasonable that we should have two Price Reviews—or at least an interim payment to the farmers? Is it reasonable that farmers should be asked to lend money to the Government?

Mr. Peart

The hon. Member, who has been absent from the House for a long time, should be aware that in 1956 there was a White Paper on Long-term Assurances to Agriculture. I must keep intact the spirit of that White Paper and the existing legislation.

Mr. Woodburn

Is my right hon. Friend aware that there is no evidence as yet that many foreign countries will not reduce their prices to counteract the 15 per cent. surcharge, and that many of these questions are therefore based on a quite false assumption?

Mr. Peart

I agree with my right hon. Friend. Therefore, it is right and proper that when we come to the actual review we should consider every factor.

Mr. Soames

Would it be right, from what the right hon. Gentleman has said—namely, that the wage increase means an extra cost of £16½ million a year—that if, on top, we add the extra cost brought about first by the surcharge, secondly, by the Bank Rate and, thirdly, by the increase in the petrol tax, the increased cost to farmers in the coming year is likely to be well over £25 million?

Mr. Peart

The right hon. Gentleman is now indulging in speculation, and he knows it. He knows what the procedure is, namely, that all costs will be considered at the annual Price Review.

17. Mr. Henry Clark

asked the Minister of Agriculture, Fisheries and Food if he will make arrangements to reimburse farmers with the additional cost of petrol and diesel oil used on their farms.

Mr. John Mackie

Changes in the cost to farmers of petrol and diesel oil will be taken into account at the forthcoming Annual Review along with all other relevant circumstances.

Mr. Clark

Will the Joint Parliamentary Secretary ensure when the Price Review is being considered that full note is taken of the fact that the small farmer, in particular, uses his motor car 90 per cent of the time as a piece of farm machinery and that it is vital to his interests? Will he also remember when the Price Review comes round that pennies added to prices here and there get through to the small farmer, who will have to pay much more in the months ahead because of increases in the prices of his raw materials?

Mr. Mackie

I am not sure that I quite agree with the first part of the hon. Gentleman's supplementary question about the small farmer using his motor car for 90 per cent. of the time as a piece of farm machinery. However, we will take what he said into account.