§ 5. Mr. Loveysasked the Minister of Agriculture, Fisheries and Food if he will give an estimate of the additional capital in farmers' hands as a result of the Price Review.
§ Mr. PeartI would refer the hon. Member to the answer given on 25th April to the hon. Member for Westmorland (Mr. Jopling).—[Vol. 745, c. 274.]
§ Mr. LoveysDid not the Minister originally say that the Price Review was worth £40 million? Since then, in the Question to which he referred, he said that no precise estimate is possible regarding capital injection. Will he not now retract the figure of £40 million, which included the so-called and doubtful efficiency factor and ignored the question of taxation and inflation which greatly reduce the net figure available for capital injection?
§ Mr. PeartAs the hon. Member knows, in my Price Review I mentioned the £30 million to which he has referred, which was agreed with the producers. As the hon. Member knows full well, the Annual Review award was not intended to be the main source of farmers' capital. Inevitably, they must rely on the banks. These are the facts of life. The Review award was very good and was welcomed.
§ 8. Mr. Hawkinsasked the Minister of Agriculture, Fisheries and Food what estimate he made at his Review of the improvement in income of arable farmers in 1967–68.
§ 12. Mr. Stodartasked the Minister of Agriculture, Fisheries and Food what estimate he has made of the effect of the recent Price Review on the incomes of arable farmers.
§ The Joint Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food (Mr. John Mackie)No estimate can yet be made because the incomes of 512 arable farmers depend on many other factors besides the Review award.
§ Mr. HawkinsIs the hon. Gentleman aware that the income of arable farmers, at any rate in East Anglia, has fallen? Fertiliser and labour costs have risen while ploughing-up grants have been reduced and are only balanced by a 2s. 6d. increase for sugar beet.
§ Mr. MackieThe Question on the Order Paper was what estimate my right hon. Friend had made
… at his Review of the improvement in income of arable farmers …".As the hon. Gentleman knows—he is a countryman himself—all sorts of factors affect the income of arable farmers. He comes from a potato-growing district. I remind him that this season the price of potatoes increased so much that potato-farmers gained £20 million more—far more than they got out of almost every Conservative Price Review.
§ Mr. StodartWith the hon. Gentleman's experience of arable farming and his addiction to keeping books, will he chance his arm and say that it is almost certain that, because of the inescapable factors of increases in fertiliser prices the cut in subsidy and increased labour costs, the income of arable farmers is almost bound to go down?
§ Mr. MackieI will chance my arm and say "No".
§ 9. Mr. Hawkinsasked the Minister of Agriculture, Fisheries and Food whether he is satisfied with the level of capital investment by farmers; and if he will make a statement.
§ Mr. PeartThe level of capital investment is a matter for individual farmers to decide in the light of their own particular circumstances. The Annual Review White Paper (Cmnd. 3229) drew attention to the sectors where further investment is needed and the award provides the industry with capital resources to finance expansion, particularly on the livestock side.
§ Mr. HawkinsHas the right hon. Gentleman considered expansion in the arable districts which produce an immense amount of food? Is he aware that tractor and fertiliser sales have been 513 going down? Surely this must mean that arable farmers are investing less?
§ Mr. PeartThe hon. Gentleman has mentioned a specific factor and it is true that the deliveries of machinery to the home market fell off in the second half of List year. But demand has now picked up again. I hope that he will not be so gloomy.