HC Deb 26 February 1969 vol 778 c1709
28. Mr. Biffen

asked the Minister of Agriculture, Fisheries and Food what proposals he has to stabilise or reduce deficiency payments, in view of the policy of containing Government expenditure.

Mr. Cledwyn Hughes

The cost of agricultural support to public funds is taken into account at Annual Reviews. The hon. Member cannot expect me to anticipate the outcome of this year's Review.

Mr. Biffen

Is not the Minister aware that it is the Government's policy, as demonstrated by the Chancellor of the Exchequer, that there shall be the tightest possible control over public expenditure? Therefore, does not the right hon. Gentleman accept that if British agriculture's domestic output is to be expanded along the lines he has indicated, to avoid a disproportionate charge on public funds some action must be taken in respect of control of imports, through either minimum import prices or levies.

Mr. Hughes

I agree that a careful balance must be maintained between public expenditure and what is needed for the health of the agricultural industry and the economy generally. The Opposition are wrong to think that the adoption of a system of import levies and target prices would at once stabilise the market, reduce the cost to the Exchequer, and provide agriculture with the resources needed for expansion. For example, support buying, to which the right hon. Member for Grantham (Mr. Godber) is committed, would be very expensive indeed. These are matters which we must discuss very carefully in the public debate which is now going on.

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