FUNCTIONS OF AUTHORITY AS TO MARKET SUPPORT

HC Deb 07 April 1970 vol 799 cc395-7

Mr. Peter Mills

I beg to move Amendment No. 9, in page 4, line 4, leave out 'for any purpose'.

The provision "for any purpose" is too wide-ranging and we are not happy about it. It is conceivable that eggs might find their way back to the retail market and be sold for any other purpose. There could be a panic to get rid of surplus eggs and they might be sold to dishonest traders or manufacturers. The National Association of Multiple Grocers has been in touch with me on this problem. The association says: Whilst the Authority may need such power to produce eggs and take them off the market, we cannot agree that the Authority should have completely unrestricted powers as proposed in the Clause of disposing of eggs which it may buy. We strongly recommend that the Clause should be amended so as to prohibit the Authority from returning those shell eggs for retail sale on the shell egg market in the United Kingdom. Such prohibition would restrict the Authority in one way only in the matter of disposal; it would leave the Authority free to dispose of the eggs in any other way, e.g. by exporting them for sale on shell-egg markets abroad or by breaking them out for processing. It would be no support to the market to take the eggs off the market at one end and put them back on the market at the other end, as the Clause would permit; it would have quite the contrary effect to that which the Clause seeks. These views are held by many grocers, who certainly realise the dangers of this provision. The Minister should consider what they say. This is a simple Amendment which would not be difficult for the Government to accept.

Mr. Hoy

We had discussions on this point earlier.

I am advised that it is doubtful whether the omission of the words "for any purpose" which the present Amendment proposes to take out would make much difference in practice to the extent of the authority's powers. But I certainly would not accept that the words are superfluous. They have been deliberately inserted in the Bill in order to make it clear beyond any possible doubt that the authority will have a free hand to sell as they think fit any eggs purchased under market support operations. This provision would cover in particular not only the sale of eggs to processors for breaking out but also their disposal on the shell egg market.

When we were discussing this matter in Committee some hon. Members opposite expressed the fear that if the authority were free to sell the eggs on the shell egg market they might be very stale when they reached the consumer. But we are setting up this authority for the express purpose of improving the marketing of home-produced eggs and clearly the very last thing they will want to do is to contribute in any way to the sale of stale eggs to the consumer. In the ordinary way no doubt the authority will exercise its powers under this provision by selling the eggs for breaking out but there may be special situations in which sale on the shell egg market would be a reasonable and sensible method of disposal. I am sure hon. Members in all parts of the House agree that we can rely on the good sense and judgment of the authority in this matter. This is the job it has set out to do to encourage a good British product. Anything done to the detriment of that would be to the detriment of the industry. I am certain that if the hon. Member for Torrington (Mr. Peter Mills) thinks it over he will agree that if they were to do anything other than that they would not be doing their job, nor helping the industry.

11.15 p.m.

Mr. Peter Mills

I understand what the Minister is getting at, but I would have thought he would have considered the danger here and perhaps the authority will read what has been said and the fears expressed, so that when the time comes, this will not take place.

There is a terrible temptation for the authority to put these eggs on the market, particularly as the Government are not going to assist with support buying. I cannot see that there will be any breaking out of these surplus eggs unless there are sufficient funds by levy to pay for the cost. There is this temptation because obviously they will get a better price for shell eggs than for breaking them out for manufacture. There is a terrible—or a serious—temptation here. I hope that, although we shall not press this Amendment, the authority will at least be aware of the fears of the trade and of some of us here.

Amendment negatived.