§ 16. Mr. Stodartasked the Minister of Agriculture, Fisheries and Food what is his estimate of the additional cost to livestock producers of increasing the price of cereals by £3 per ton.
§ Mr. HoyI would refer the hon. Member to the reply given to the Question by the hon. Member for Angus, North and Mearns (Mr. Buchanan-Smith) on 4th March.—[Vol. 760, c. 20.]
§ Mr. StodartCan the Minister confirm that when the White Paper says that the level of minimum import prices is under consideration, that applies to a revision upwards as, I think, one might expect? If it does, what recompense is to be given to livestock producers following upon the Price Review which was unagreed?
§ Mr. Hoy"Unagreed" is a very good word. It certainly was not disagreed. There are already differences among livestock farmers in the feeding systems and cereals usage. Global estimates in the annual review are for all feeding-stuffs and estimates of cereal effect only would not be practicable.
§ 17. Mr. Stodartasked the Minister of Agriculture, Fisheries and Food what is his estimate of the rise in cost of imports, due to an increase in the minimum import price for cereals and cereal products of £3 per ton.
§ Mr. HoyAn increase in the minimum import prices does not necessarily involve a corresponding, or any, increase in the cost of imports, since a minimum import price takes effect only if and when the commodity to which it relates is on offer at or below that price. Thus the effect of an increase in minimum import prices depends on the level of world cereals 1208 prices. A general increase of £3 per ton would not at present increase the cost of most of our imports.
§ Mr. StodartDespite the hon. Gentleman's somewhat adroit evasion of this real problem, is it not absolutely clear that an increase in minimum import prices would put an extra burden on the balance of payments? It is surely clear that it would and that, if minimum import prices are to be raised, then at least import levies, which would be of advantage to the Exchequer, should come with them.
§ Mr. HoyWhatever the hon. Gentleman may say on that last point, that was not in his original Question. I was not avoiding the Question, adroitly or otherwise, but stating a fact. Obviously, one must take all these things in balance. Of course we must think of the effects of the present prices on our own trade. Indeed, it is always difficult to know whether hon. Gentlemen want to put them up or bring them down. What we must do is act in the interests of both the producer and the consumer.