HC Deb 24 March 1965 vol 709 cc549-51
26. Mr. Derek Page

asked the Minister of Agriculture, Fisheries and Food whether he will take steps to utilise to the fall the production capacity of British farmers and horticulturists to help Great Britain's balance of trade position.

Mr. Peart

We are taking steps to encourage the best use of the capacities of our farmers and growers, both by stimulating an increase in production where it can help our balance of payments most and by encouraging an even faster growth in productivity.

Mr. Page

Is my right hon. Friend aware that the increase in standard quantities, especially in cereals, is very welcome and might be held to represent an expansionist tendency, whereas the International Cereals Agreements are help by many to represent a counterinfluence? Will my right hon. Friend comment on this and refresh my memory as to the parties to those agreements?

Mr. Peart

My hon. Friend will be aware that the International Agreements of Cereals were concluded with our main suppliers—Australia, Argentina, the United States and Canada—and were partly the responsibility of my predecessor. [Interruption.] Of course they were. I was addressing the questioner. [HON. MEMBERS: "Address the Chair."] The National Farmers' Union supported these agreements. I have an obligation in principle to support these agreements, which I have done, and hon. Members opposite must also accept responsibility for supporting them.

Sir M. Redmayne

Is the Minister aware that this is a matter that we look forward with keen anticipation to debating next week?

Mr. Peart

Certainly, and I hope that those hon. Members who shouted "Resign!" so strongly will also attend the debate.

Mr. Ensor

Can the right hon. Gentleman tell the House why it was necessary for the Government, in the Price Review, to reduce the guaranteed price of cereals?

Mr. Peart

I have given an explanation in my White Paper. I have also replied over and over again to Questions on the point. We were bound by an agreement, and I had to honour it. That is why I made the decision.

Mr. Turton

Is the Minister aware that his imposed solution in the Price Review is preventing the agricultural industry from giving greater help to the balance of payments position?

Mr. Peart

I cannot accept that, because some of my proposals in the Review are designed to increase meat production, for example. This is important.

Mr. George Y. Mackie

Is the right hon. Gentleman aware that only the Liberal Party did not support standard quantities? Is he further aware that in this Review there is no sign of an expansionist policy on the part of the Government? Does he know that the price of beef in this country is 34s. a cwt. below the price in Europe?

Mr. Peart

I was not aware that when the cereal agreement was approved by the previous Administration the Liberal Party in the House made a protest. I am certain I am right about that.

Mr. Prior

Is the right hon. Gentleman aware that the Question put down by his hon. Friend is typical of the sort of illusion which the Government tried to create before the Price Review, when they tried to give the impression the whole time that they would look after the interests of agriculture and safeguard the balance of payments position? Is he aware of the great disappointment and disillusionment on the part of the farming industry resulting from his policy?

Mr. Peart

I cannot accept that. The Question put by my hon. Friend shows that he has a deep interest in agriculture. I am not aware that there is any revulsion among sensible farmers. When people in the farming world read my proposals in the White Paper carefully I believe they will accept that we are embarked upon a sensible and progressive farm policy.

Sir D. Renton

Is the right hon. Gentleman aware that farmers cannot make their full contribution to solving our balance of trade problem unless they are paid enough to cover the costs of production? How does he reconcile the statement that he made at first in answer to this Question with the under-recoupment that takes place as a result of the Price Review?

Mr. Peart

This is not so. I have explained over and over again that even taking into consideration the £29 million increase on costs the Price Review will give farmers an opportunity to increase their income. It is a £6 million increase. At the same time, owing to the demand in relation to meat products the farmer will get a price above the guaranteed price laid down in the Review. Farmers have an opportunity to increase their income, but we must balance producers' interests with the interests of the consumers.