HC Deb 19 May 1965 vol 712 cc1427-9
4. Mr. Peter Mills

asked the Minister of Agriculture, Fisheries and Food if he will give, adjusted to a constant money value, the net farm income figures as set out on page 32 of the White Paper on the Price Review.

Mr. Peart

I am circulating details in the OFFICIAL REPORT.

Briefly, adjusted to 1937–38 money values, the Departmental forecast for aggregate farming net income in the United Kingdom for 1964–65 becomes £146 million, or £141 million when adjusted to normal weather conditions. The figure for 1937–38 was £56 million.

The figures show that income in real terms in 1964–65 is expected to be higher than in any of the other years during the last decade, except 1962–63.

Mr. Mills

Is not the Minister conceding that the real income of the agricultural industry for 1964–65 has less purchasing power than for most years since 1951? Surely these calculations should have been done before the Price Review. Is not it quite obvious that we did not have sufficient recoupment at the last Price Review?

Mr. Peart

I cannot accept the hon. Member's conclusions. I repeat what I have said so often, in and outside the House. The figures given show that incomes in real terms in 1964–65, both actual and on a normal weather basis, were higher than in any other year during the last decade except 1962–63. Indeed, as I said in our discussions on the annual Price Review, there is no reason why the income position of the farmer should not be improved.

Sir C. Osborne

Does the right hon. Gentleman ever hope that we shall see constant money values again? Does he accept inflation as being inevitable?

Mr. Peart

Certainly not. If the hon. Member wishes to think in those terms that is his responsibility. I am not responsible for his thinking and I do not accept that.

Sir A. V. Harvey

Is the right hon. Gentleman aware that most farmers would like to see an increase in the pay of agricultural workers? How could this be done under the policy which he has in hand?

Mr. Peart

My policy, which embodies also a long-term approach, is designed to increase efficiency in this great industry, to make it advance and be progressive, so that it can pay workers reasonable rates of pay. This is my aim. I am sorry that I got the backlog of 14 years' neglect.

Following is the information:

AGGREGATE FARMING NET INCOME IN THE UNITED KINGDOM ADJUSTED TO 1937–38 MONEY VALUES
Years beginning 1st June £ million
Departmental" Calculation
Actual Adjusted to normal weather conditions "Raised Sample" Calculation
1937–38 … 56 — 61
1946–47 … 112 124 95
1947–48 … 123 127 85½
1948–49 … 152 145 119½
1949–50 … 156 151 110½
1950–51 … 131 138½ 95
1951–52 … 146½ 143½ 101
1952–53 … 145½ 143½ 112½
1953–54 … 142 135½ 126½
1954–55 … 125 138 103
1955–56 … 134½ 127½ 109½
1956–57 … 126 132 112½
1957–58 … 135 134 130½
1958–59 … 118 133 124
1959–60 … 128 127½ 111
1960–61 … 136½ 135½ 122
1961–62 … 143 139½ 133
1962–63 … 147 144½ 134
1963–64 … 130½ 136 120
1964–65 146 141 (Not yet available)
(Forecast)

Note: The estimates given on page 32 of "Annual Review and Determination of Guarantees, 1965, Cmnd. 2621" have been adjusted to 1937–38 money values by the Consumer Price Index.