Balance of Payments (Hansard, 16 October 1968)

§ 6. Mr. Buchanan-Smith
asked the Minister of Agriculture, Fisheries and Food what consideration he has given to the effects of present policy in relation to imports of food on home agriculture: and if he will make a statement.

§ 9. Mr. Peter Mills
asked the Minister of Agriculture, Fisheries and Food if he is satisfied with the contribution agriculture is making to the United Kingdom's balance of payments problems; and if he will make a statement.

§ 13. Mr. Marten
asked the Minister of Agriculture, Fisheries and Food if he will make a further statement about import savings by the agricultural industry.

§ 16. Mr. Kenneth Lewis
asked the Minister of Agriculture, Fisheries and Food what plans he now has for implementing the report of the National Economic Development Council on Agriculture; and if he will make a statement.

§ Mr. Cledwyn Hughes
The vital contribution that British agriculture is making to our balance of payments and the 353 extent of that contribution are matters which any Minister of Agriculture must constantly consider.
The Report of the Economic Development Committee for Agriculture has provided an invaluable basis for assessing the technical possibilities of expansion in relation to agriculture's contribution to the economy through import saving in the coming years. But other complex and far reaching issues are involved. When the Government have completed their examination of them, I will make a statement.

§ Mr. Buchanan-Smith
Is the Minister aware that reports of a statement he made recently in Denmark caused widespread alarm amongst home producers? Can he give the House a categoric assurance that home agriculture will be given a positive opportunity to replace imports and in that way help the balance of payments?

§ Mr. Hughes
The hon. Gentleman should very carefully read what I said in Denmark and not draw the same inference as one newspaper drew. We are on an expansionist course. The hon. Gentleman is aware of the selective expansion programme. We are considering the Report of the Economic Development Committee very carefully and I hope to make a statement fairly shortly.

§ Mr. Mills
Is it not a national scandal that agriculture is not allowed to play a much greater part in solving our balance of payments problem? Will the Minister bear in mind that it is not in the best interests of agriculture to allow our best calves to be exported just for the sake of what we get from their export? What is needed is control of imports and a green light for agriculture to go ahead.

§ Mr. Hughes
The point the hon. Gentleman raises about calves does not arise on these Questions. He must table a Question about that. We are embarked on an expansionist programme such as was not devised or thought of by the Conservatives when they were in power. This is having its effect. It is making a contribution to import saving. Now we are considering what further measures are necessary. I will make a statement on this as soon as possible.

§ Mr. Marten
I understand the Government's desire to save imports, but can the Minister give an assurance that this policy of saving imports will not apply to the Commonwealth Sugar Agreement?

§ Mr. Hughes
This is another question. Discussions on this issue are to start shortly and I cannot anticipate what they will be. I am very appreciative of the value of the Commonwealth Sugar Agreement.

§ Mr. Manuel
When dealing with the question of imports, is it not important to strike a proper balance so that there will not be rising prices in the shops because of a wrong balance between imports and home production?

§ Mr. Hughes
This is a balance of which I am constantly aware: I live with it every day. Not only am I Minister of Agriculture; I am also Minister of Food. This is a balance I must maintain. I am grateful to my hon. Friend for drawing it to the attention of the House.

§ Mr. Godber
The Minister has spoken of an expansion programme and in replying to Question No. 16 he has spoken about the E.D.C. Report. Does he still adhere to the projects in the National Plan until such time as he has given us his view on the E.D.C. Report? If so, does he not recall that the plan says clearly that we are to expand capital production to the maximum possible for beef? How does that square with his facilitating the export of calves, to which my hon. Friend the Member for Torrington (Mr. Peter Mills) referred and which is very relevant to this question?

§ Mr. Hughes
The question of beef will be considered with other commodities in our general consideration of the E.D.C. Report and in our general study of the problem. When I make a statement I shall be referring to beef, which I regard as very important. The right hon. Gentleman must table a Question to deal with his point on calves.

§ Mr. W. Baxter
Is my right hon. Friend aware that the question of the export of calves is of paramount importance to the future wellbeing of the industry? Is he further aware that buyers come from Belgium and other continental countries to buy our best stock 355 calves for veal purposes? The price these calves fetch in this country of §7 per cwt. rises to about §60 to §100 per cwt. in Belgium when the calves are resold. Will my right hon. Friend take action to preserve our stock calves in Britain?

§ Mr. Hughes
The question of calves has aroused a great deal of public interest, as has been expressed in supplementary questions this afternoon. However, this should be the subject of another Question. It may assist the House if I say that it is a matter to which I am giving very urgent attention.

§ 10. Mr. Peter Mills
asked the Minister of Agriculture, Fisheries and Food, in view of the large volume of imports of primary products, what new steps he has taken through international agreement to help strengthen the balance of payments.

§ Mr. Cledwyn Hughes
International agreements make a contribution to market stability. The Government have consistently sought to strengthen this country's balance of payments by encouraging the selective expansion of United Kingdom agricultural production.

§ Mr. Mills
This is not good enough. The Minister must realise that these voluntary arrangements will never work. He is dealing with ruthless countries which are prepared to subsidise to the extent of £300 to £400 a ton. New arrangements are needed to stop the flow of these products into Britain.

§ Mr. Hughes
We already have arrangements designed to promote greater market stability which regulate the imports of various important commodities—for example, cereals, bacon, butter and other commodities. Since this Government took office the United Kingdom has participated in the negotiation of new international agreements—for example, the new international coffee agreement—and we are active in negotiations concerning an agreement on sugar and cocoa. There is a wide range of negotiations going on now. I am conscious of the importance of what the hon. Gentleman has said, but he must not exaggerate.

§ Mr. Maxwell-Hyslop
Is not the Minister aware that it is not the home- 356 produced coffee market which is threatened with collapse but the home-produced milk market which is threatened with collapse? When will he stop these informal discussions and start taking effective action in time before this market collapses?

§ Mr. Hughes
The hon. Gentleman is not doing agriculture a service by this exaggeration. He should realise that the market is not near collapse. Butter is sustained by the quota system. We are asking for voluntary restraint and negotiating on cheese. The hon. Gentleman must not say these things.