§ 4. Mr. Hawkinsasked the Minister of Agriculture, Fisheries and Food what estimate he has made of the deficiency payments for beef during the current financial year.
§ 9. Mr. Maxwell-Hyslopasked the Minister of Agriculture, Fisheries and Food what are his latest estimates of price support payments in 1967–68.
§ Mr. PeartThe Winter Supplementary Estimates which will be published in the next few days will include some £18 million on account of the possible increase in the cost of price support in 409 the United Kingdom, of which £13½ million is for fat cattle. In accordance with normal practice this is about three quarters of the increase we think may be needed and is attributable in large part to changes made at the Annual Review.
§ Mr. HawkinsDoes the Minister not realise that these high payments, even though they may be reduced temporarily because of the shortage of cattle through foot-and-mouth disease, will produce a demand for cuts in subsidies from townspeople? Will he at once start levies on imports, beginning with Argentine beef?
§ Mr. PeartI am rather surprised at the hon. Member suggesting that I should adopt immediately a levy system because that would mean the end of the subsidy system as we know it. [HON. MEMBERS: "Hear, hear."] His hon. Friends take up the cry, "Cut the farmers' subsidies." This system is imperative to the guarantee. We emphasised that at the last Price Review and I believe we were right to do it.
§ Mr. Maxwell-HyslopWhy did the Minister begin reconsideration only after devaluation? Was he deceived by the Prime Minister's assurances that there would not be devaluation? Why did he not make contingency plans against devaluation and bring in an immediate Review after them instead of waiting until after it had happened?
§ Mr. PeartThe hon. Member is out of touch with reality. When a decision was made I accepted collective responsibility and started my plans. Hon. Members must know full well that I could not inform many people about a major decision before embarking on this. I hope that the hon. Member will be realistic.
§ Mr. PriorWhy is the Minister pouring such scorn on a levy system? Does he not realise that devaluation is tantamount to a 15 per cent. levy on all imports, except that we do not get the benefit from it?
§ Mr. PeartWhen the hon. Member says that I am pouring scorn on the system he should know that our system is working very well. Our agricultural support system, which we have built up on the 1947 and the 1957 Acts, is the 410 admiration of many countries in Europe. I do not want easily to destroy it for some false Conservative approach.