HC Deb 15 April 1970 vol 799 cc1366-8
8. Mr. Jopling

asked the Minister of Agriculture, Fisheries and Food what steps he is taking to slow down the escalation in farming costs which has occurred in recent years.

15. Mr. Buchanan-Smith

asked the Minister of Agriculture, Fisheries and Food what measures he now proposes to contain the present high rate of increase in costs to the agriculture industry.

Mr. Cledwyn Hughes

The 1970 Annual Review determinations more than covered increased costs over the past year.

Mr. Jopling

Does the right hon. Gentleman agree that under his Government costs have been rising at about two-and-a-half times the rate compared with a similar period under the previous Government? Is it not scandalous that the Government have been going round during their Price Review trying to blackmail organisations such as feeding-stuff manufacturers to stabilise their prices for a period? Does he realise that the Government are the villains of the piece, and that they should be putting their own house in order before they try to get other people to absorb the rising costs?

Mr. Hughes

As I have said before, costs were high last year, but to accuse the Government, or me, of trying to blackmail feeding-stuff manufacturers is scandalous, and I must ask the hon. Member to withdraw his remarks.

Mr. Buchanan-Smith

Does not the Minister realise that, apart from the Price Review, the agriculture industry is still in the grip of a roaring cost inflation? Does he know about health insurance stamps, telephone charges and machinery costs, all of which have risen since the Price Review?

Mr. Hughes

I said that I agreed that cost increases were high, but they were not the highest ever. There were years during the administration of the party opposite when costs were very high. I would point out that one of the main items in the global total of cost increases last year—no less than one-third—was the wage award to agricultural workers. Many farmers employ no labour, and they have been unaffected by this increase. It is also important to remember that the number of farm workers fell from 544,200 in 1964 to 402,200 in 1969. All those factors must be taken into account.

Mr. Speaker

I remind hon. Members that long Questions and Answers mean fewer Questions and Answers.

Mr. McNamara

Can my right hon. Friend explain a dilemma to me? We have had appeals for price stabilisation from the party opposite and, having achieved stabilisation of certain prices, we are bitterly attacked for it. We were attacked for our prices and incomes policy, under which we tried to fix prices and incomes. Now the party opposite attacks free collective bargaining, which to a certain extent puts prices up.

Mr. Hughes

My hon. Friend is right in what he says.

Mr. Godber

May I remind the Minister of what the late Tom Williams—as he then was—said in the House in 1957, when speaking of a Conservative Price Review, when costs had risen far more than the average rise under a Conservative Government—in fact, by £38 million? He said that increased costs were the most serious thing which could capsize the best-run ship. Will the Minister take note of the fact that under him costs are rising at least twice as fast?

Mr. Hughes

I am always conscious of the cost factor in relation to the Price Review, but I am bound to point out to the right hon. Member and his hon. Friends that the record of this Government is much better than that of the Opposition. The fact is that we have had two cost-plus Reviews in six years, as against their one in 13 years.

Mr. Jopling

On a point of order, Mr. Speaker. I beg to give notice that, far from withdrawing what I said, I shall raise this matter on the Adjournment at the earliest moment.

Mr. Speaker

Notice must be given in the conventional way.