HC Deb 10 February 1965 vol 706 cc356-60
6. Mr. Evelyn King

asked the Minister of Agriculture, Fisheries and Food whether he will in future years arrange with the Potato Marketing Board to give a support price earlier in the year.

62. Mr. James Johnson

asked the Minister of Agriculture, Fisheries and Food what are his plans regarding future financial aid for the Potato Marketing Board.

Mr. Peart

The market support arrangements which are operated by the Potato Marketing Board are now being reviewed by the Agricultural Departments, the National Farmers' Unions and the Board. I cannot at this stage anticipate any conclusions that may emerge from this review.

Mr. King

Is the right hon. Gentleman aware that the decision announced to the Press yesterday rejecting the advice offered him by the Potato Marketing Board is a grave one? Is he aware that I have in my hand a telegram from the Chairman of the Dorset National Farmers' Union asking me to protest in the strongest terms to the Minister and the House? Is he further aware that if he compels potato growers to sell their produce at a price below what it cost them to grow, and contrary to the advice offered to him, he incurs a very heavy responsibility?

Mr. Peart

When I met the Board and representatives of the unions concerned, I carefully considered their case and came to the conclusion that there was no need to panic at this stage. [HON. MEMBERS: "What about the right hon. Gentleman's predecessors?"] I am taking my own decision in the light of my responsibilities. I believe that the matter affects not only the producer but also prices to the consumer.

Mr. James Johnson

Despite the vociferous lobby opposite, will my right hon. Friend bear in mind that the needs of the consumers are important? Will he guarantee that there will be adequate, reasonable supplies at fair prices, not forgetting all the time that fish, particularly Hull fish, and chips constitute a basic item in the diet of all classes?

Mr. Peart

Obviously, we must balance the needs of the consumer and the producer, and that is what we are doing. As I said, we are also reviewing the market support arrangements, and discussions will go on.

Mr. Soames

The right hon. Gentleman has just said that there is no need to panic at this stage. Is he implying thereby that the request put to him by the Potato Marketing Board to intervene in the market was a panic measure? Of course it was not. Will he tell us the reasons which led him to refuse this perfectly reasonable request so that the Gov- ernment could fulfil their obligations to the potato industry and keep potatoes at a reasonable price?

Mr. Peart

I said that I would not panic, and I do not propose to do so despite the promptings from the other side of the House. I believe that the decision that I took was the right one, and I am standing by it. Obviously, I shall look at events. In view of the price situation, I felt that there was no need for action of the kind which I am being asked to take by hon. Members opposite.

Mr. Baxter

Will my right hon. Friena use his good offices to try to get a re-organisation of the Potato Marketing Board, which is very much required from many points of view, not least because of the amount of "bumph" sent out to growers which they are unable to understand because of the phraseology used in the circulars? Cannot the matter be looked at with a view to simplifying the whole set-up and bringing benefits not only to the consumer but to the grower?

Mr. Peart

As I said, I am looking into the market support arrangements. On the wider question of changes in the Potato Marketing Board, that would be a matter of altering part of the Agriculture Act, 1958, and its implications. I am concentrating now on the support arrangements.

Mr. Stodart

Is the right hon. Gentleman aware of the great anxiety that has been expressed as a result of his very recent decision by people who are far away from the markets? I am thinking particularly of people in the north of England. So far as the right hon. Gentleman's responsibilities go, I realise that I cannot step into Scotland. Is he aware that when he quotes average prices, such people are in a very much more difficult position than others? Will he bear this situation in mind?

Mr. Peart

I will certainly bear it in mind. I am watching the situation very carefully.

Mr. King

I desire to give notice that, in view of the unsatisfactory nature of the answer, I shall raise the matter on the Adjournment.

7. Mr. Evelyn King

asked the Minister of Agriculture, Fisheries and Food whether he will seek to confer wider powers on the Potato Marketing Board.

Mr. Peart

No, Sir. Wider powers could not be conferred on the Board except by an amendment to the Potato Marketing Scheme, and under the Agricultural Marketing Act, 1958, Ministers are not normally empowered to initiate amendments, as this is a function of the Board itself. No draft amendments have been submitted by the Board since those approved in May, 1962.

Mr. King

Is the right hon. Gentleman aware that if the advice of the Potato Marketing Board, as now constituted, is to be perpetually rejected, this will be harmful to the potato trade and not helpful? Will he bear in mind, in considering the matter, that the retail price of potatoes in shops bears practically no relation to the price paid to the farmer and that a rise in the price to the farmer does not have a corresponding retail effect, as it does in the case of other products?

Mr. Peart

I do not perpetually reject the Board's advice. I have rejected it on one occasion. It is my job to do so if necessary.

Sir H. Legge-Bourke

Is the right hon. Gentleman satisfied that the powers of the Board are sufficient to ensure that the taxpayer's position is not prejudiced? As the price of potatoes is now below the guaranteed price, the taxpayer will suffer unless the right hon. Gentleman takes the advice of the Board.

Mr. Peart

This is one of the matters I have said we will look at. I am having discussions about the future of support arrangements.

Mr. Snow

Is my right hon. Friend aware that, contrary to a reply he gave to me last week, there is continuing public disquiet about the fraudulent marketing of second-rate potatoes at first-rate prices?

Mr. Peart

That is another matter, but if my hon. Friend has an example about which he could send me information I will consider it.

Mr. George Y. Mackie

Is the right hon. Gentleman aware that the present situation in the north of Scotland illustrates the need for wider powers? Potatoes for seed are being sold there at £3 to £4 below the guaranteed price. The situation calls for wider powers and, indeed, immediate action by the Board.

Mr. Peart

We are discussing that, as I have said. We will certainly look into whether there is need for wider action by the Board in the case the hon. Member has mentioned.

Mr. King

On a point of Order, Mr. Speaker. Once more, in view of the equally unsatisfactory nature of that reply, I beg to give notice that I will seek to raise this matter also on the Adjournment and at the earliest opportunity.