HC Deb 19 May 1965 vol 712 cc1450-3
32. Sir. M. Redmayne

asked the Minister of Agriculture, Fisheries and Food what is the average figure of cereal imports up to 30th June, 1965, which will be relevant to consideration of cereal prices in the 1966 Review.

Mr. Peart

I assume the right hon. Member has in mind the obligation under the cereals agreements with our major overseas suppliers to take corrective action, in certain circumstances, if total cereal imports show or threaten to show an appreciable decline below their average volume during the three years ending 30th June, 1964. That base period was prescribed in the Agreements and during that period the average volume of imports was just over 9 million tons.

Sir M. Redmayne

The Minister has not answered my Question. It is perfectly obvious that if the last Price Review was based on the average imports of the three years ending 1964, there must be in the Minister's mind some average figure which will apply to the Price Review next year. The farmers have already been punished, if I may use the word, and punished very severely for the fact that imports fell off. What is the figure to be on which they may expect the next settlement to be made?

Mr. Peart

The right hon. Gentleman cannot expect me to make a statement about factors which are to be considered at the next Price Review. I remind him that the cereals agreement was supported by the Government of which he was a member and which concluded that agreement with our overseas suppliers. There are obligations in that. If the right hon. Gentleman reads his own White Paper, Cmd 2339, he will find that it says that for the purposes of maintaining a volume of imports the Government will have to consider what effective corrective action they should take.

Sir M. Redmayne

Are we to go on for ever on the same average imports for the last year when the Minister adjusted the Price Review accordingly and, in my opinion, very severely and unnecessarily? The right hon. Gentleman always hides behind this voluntary agreement whenever this question comes up, but what in fact is the average figure which will be used next year in deciding what the prices of cereals should be?

Mr. Peart

The three years will have to be borne in mind, but I could not make a definite statement about what I shall do until we have had negotiations at the next Price Review.

Sir M. Redmayne

Will the same three years rule for ever, next year, the year after and five years after that?

Mr. Peart

How can three years go on for ever?

33. Sir M. Redmayne

asked the Minister of Agriculture, Fisheries and Food what is the system of consultation with the principal co-operating countries referred to in Cmnd. 2339; and what approaches have been made by those countries to him since he took office.

Mr. Peart

The Cereals Agreements with each of our four major suppliers state that consultations on their operation may be held at any time on request of either Government. But certain specific consultations are provided for, the most important of which is the review of the achievement of the objectives of the agreements starting not later than December in each year.

As regards the last part of the Question, I would refer the right hon. Member to the statement I made on 3rd February about the first of these reviews in reply to a Question from the right hon. Member for Bedford (Mr. Soames). Consultation under these Agreements is a continuous process and there have been further exchanges since that date.

Sir M. Redmayne

Is the right hon. Gentleman then saying that the pressures brought upon him by the foreign suppliers were such that he came to the opinion that the import position during the previous year had resulted in an appreciable distortion of the pattern of trade, within the terms of the voluntary agreement, or did he just run away from the situation in order to be able to save a little money on the Price Review and cut down the farmer even further?

Mr. Peart

I am not saying that at all. The agreement, which was concluded by my predecessors, was in its first year of operation and had to be fulfilled in principle. I was honour bound to fulfil it in principle. If the right hon. Gentleman does not agree with that, he should come clean and tell me to tear up the agreement.