HC Deb 25 November 1964 vol 702 cc1254-6
12. Mr. Prior

asked the Minister of Agriculture, Fisheries and Food what articles of farm machinery and equipment, fertilisers and feedingstuffs are affected by the 15 per cent. import surcharge; and what is the estimated annual cost to the agricultural industry.

Mr. Peart

The charge affects all items of agricultural machinery and equipment and manufactured fertilisers, but it does not affect the raw materials of fertiliser manufacture. Feedingstuffs are not affected except that small quantities of minerals used by compounders may be charged. It is not yet known to what extent the temporary import charge will be reflected in the prices actually paid by farmers.

Mr. Prior

Is not that a rather disappointing reply? Has the right hon. Gentleman no figures of the increased costs, for example, for imports of machinery? Is he aware that this will add to a farmer's costs, and will this be taken into account at the Annual Price Review? Furthermore, is the right hon. Gentleman aware that the import of machinery has done much to make British farm machinery more competitive and thus help to build up the magnificent export record of farm machinery?

Mr. Peart

The hon. Gentleman says that my reply was disappointing, but he will appreciate that it is impossible as yet to estimate what the effect of the increased costs will be. On a previous occasion in reply to a Question I said that increased costs would be taken into account in the February Price Review.

Mr. Soames

Will the right hon. Gentleman say what is the purpose of imposing a 15 per cent. surcharge on certain articles and items which are essential both for feedingstuffs and for fertilisers and which can in no way be obtained in this country?

Mr. Peart

The right hon. Gentleman knows why the surcharge was put on. It was imposed to restrict imports in view of the serious balance of payments positon which was created by the right hon. Gentleman and his colleagues.

Mr. Soames

Does this mean that the right hon. Gentleman is hoping to see a diminution of the use of fertilisers and foodstuffs in this country?

Mr. Peart

Certainly not—and the right hon. Gentleman should not draw that conclusion.

19. Sir Richard Glyn

asked the Minister of Agriculture, Fisheries and Food whether he will make a statement on the impact of the 15 per cent. surcharge on imported fertilisers on the agricultural and horticultural industries.

Mr. Peart

Only manufactured fertilisers are subject to the 15 per cent. charge. These fertilisers represent only a very small proportion of total usage in agriculture and horticulture.

Sir Richard Glyn

Is the Minister aware that the balance of imports of manufactured fertilisers over exports was very considerable in the last nine months? Is he aware that although this may be a small proportion of the total costs of farmers and horticultural growers, none the less fertilisers are used by the most progressive farmers and horticulturists; that the latter particularly will be heavily hit in this respect and have no hope of any help from future Price Reviews? Is he aware that this burden will fall most heavily on the modern progressive growers and farmers, and will he see what can be done?

Mr. Peart

The hon. Member must be aware that none of the principal fertilisers used by horticulturists bear the additional import charge. Potash has been classed as a raw material and excluded from the charge. But, where there are difficulties, I can assure the hon. Members that I will have discussions with the representatives of producers; indeed, these are now taking place.

Mr. Soames

Will the right hon. Gentleman assure the House that there are no materials from abroad used in the manufacture of fertilisers in this country which carry the 15 per cent. surcharge?

Mr. Peart

I cannot say that. I did refer to fertilisers such as potash.

Mr. Soames

I understood the right hon. Gentleman to say that only manufactured fertilisers carried the surcharge. Surely, therefore, the inference is that there is no raw material used for the manufacture of fertilisers in this country which carries the surcharge?

Mr. Peart

Not the raw materials that are here, certainly. If they are imported, they might be affected, if they are part or ingredients of manufactured fertilisers. Potash is something quite different.