Potatoes (Hansard, 26 June 1968)

§ 10. Mr. Brewis
asked the Minister of Agriculture, Fisheries and Food what encouragement he will give to increased production of home-grown early potatoes.

§ Mr. Hoy
New potatoes imported from non-Commonwealth sources from 16th May to 30th June are liable to a protective duty of £9 6s. 8d. a ton, and I am not aware that further encouragement is needed.

§ Mr. Brewis
That is a most unsatisfactory Answer. Is the hon. Gentleman aware that imports of Cyprus and other foreign potatoes are flooding into this country at an extremely low tariff and that in July the tariff will be less than a farthing a lb.? Is he aware that we can produce potatoes just as well at home? 426 Will he therefore consider a complete change of policy for the protection of home growers?

§ Mr. Hoy
The hon. Gentleman refers to potatoes flowing in with a very low tariff in July. I cannot say what the figure will be—[Interruption.]—or confirm his figure. I can only say that our producers are protected to a considerable extent as a result of the imposition of substantial import duties on anything other than Commonwealth produce. I hope that the hon. Gentleman is not suggesting that we should impose somewhat similar terms on Commonwealth countries.

§ Mr. Gibson-Watt
Owing to the importance to Pembrokeshire and South Wales generally of the early potato crop and the fact that they are dependent on road transport, would the hon. Gentleman say how much per ton the cost of producing potatoes in these areas is rising as a result of S.E.T., the Budget and the iniquitous Transport Bill?

§ Mr. Hoy
As the Transport Bill has not yet come into operation, it obviously cannot have had an effect on the cost of producing potatoes. People should not exaggerate the position in the way that the hon. Gentleman has done. [HON. MEMBERS: "Answer."] I am answering and I do not believe that S.E.T. has had any great effect, either. [HON. MEMBERS: "Oh."] I do not believe that S.E.T. has made a remarkable difference.
We are, of course, aware of the difficulties of the potato industry at the present time. The early crop has been a little later than usual and the following crop has come a little earlier. This set of circumstances has produced the present difficulties, but it must be remembered that during this period there has been in operation quite a large tariff on imports.

§ Mr. W. Baxter
Notwithstanding the fact that there is a large tariff on foreign potatoes, may I ask whether my hon. Friend is aware that the market has been flooded to a great extent? Would he agree that our first priority must be to the home producer, that our second must be to the Commonwealth and that our third can be to foreign imports? Will he look at this whole matter again in view of the fact that many of the potatoes 427 grown in Britain are being used for pigfeed?

§ Mr. Hoy
My hon. Friend has the priorities nearly correct. They must, first, be to the home producer, and then to our Commonwealth partners. However, we must not forget the housewife, who must be able to buy potatoes in the shops and we must ensure that she obtains supplies at reasonable prices. This is why imports from foreign countries pay a tariff which is not paid by Commonwealth producers.

§ Mr. Kenneth Lewis
Although the hon. Gentleman appears to be satisfied with the present tariff, is it not clear, from the flood of foreign potatoes on the market, that the tariff is inadequate? Since he indicated that he does not know what the position will be in July, which is only a week or so away, is it not time that he studied the position to see what action can be taken to deal with the position between now and July?

§ Mr. Hoy
I assure the hon. Gentleman that we always have this matter under review. In any event, I did not say that I was unaware of the position. I said that I could not confirm the figure given by his hon. Friend for July. I do not know from where the hon. Gentleman got that figure. [HON. MEMBERS: "Answer."] I can neither confirm nor deny it.

§ Mr. Manuel
Will my hon. Friend make certain that if there is to be greater control on the import of new potatoes, the price of home-grown potatoes will be kept as reasonable as the housewife can afford?

§ Mr. Hoy
That is always the great difficulty and I appreciate what my hon. Friend is saying. We are seeking to give a fair return to the producer. This is important. At the same time, it is the duty of my Ministry to see that the housewife is able to buy potatoes at reasonable prices.

§ Mr. Brewis
On a point of order. In view of the unsatisfactory nature of the Minister's reply, I beg to give notice that I shall raise the matter on the Adjournment.

§ 24. Mr. Kitson
asked the Minister of Agriculture, Fisheries and Food whether 428 he will make a statement on the import of early potatoes and the effect on home producers.

§ Mr. Cledwyn Hughes
Since the first week in June prices for early potatoes have been lower for this time than for some years past. This has been due, first, to weather conditions which caused the earliest crops from the south and west to overlap with the eastern counties crop which usually arrives about a fortnight later, and second, to the increase of about 7,000 in the acreage planted to first earlies. Imports, most of which arrive before mid-May, have not been a critical factor.

§ Mr. Kitson
Are not fanners who are lifting potatoes at present losing up to about £50 an acre? Is not there a complete collapse in the home market? What does the Minister intend to do about it?

§ Mr. Hughes
I agree that, for the reasons I gave, farmers are not having as good a year as they had last year, which was a splendid year for them, and as they had the year before that. There are unpredictable factors, as the hon. Gentleman well knows. The Government can help. We help with an import tariff, with a top rate of £9 6s. 8d. a ton from mid-May to the end of June. If market support operations are necessary, the Board can buy from growers of earlies any potatoes not marketed before 1st August. There are considerable safe-iguards which the hon. Gentleman should consider.

§ Mr. Tudor Watkins
Will my right hon. Friend consider the correspondence which I sent him this week about another feature of this problem as it affects my constituents—that is, the growers of early seed potatoes, the best in this country? Unless the potato growers of Pembrokeshire are able to market their potatoes, they may leave them in the ground and there will be no market for the seed growers of Brecon and Radnor.

§ Mr. Hughes
I have enormous sympathy for Breconshire and for my hon. Friend. I will consider his letter very carefully when I receive it. I refer him to the reply I gave to the hon. Member for Richmond, Yorks (Mr. Kitson).