HC Deb 13 May 1970 vol 801 cc1225-6
16. Mr. Buchanan-Smith

asked the Minister of Agriculture, Fisheries and Food what will be the reduction in income to hill flocks of sheep as a result of the 1970 wool clip prices announced by the Wool Marketing Board.

Mr. Hoy

This will depend on the farm, the flock and the season. I understand, however, that on average the prices in the board's schedule are around 5 per cent. lower.

Mr. Buchanan-Smith

Could the right hon. Gentleman direct himself particularly to the problem of the hill and upland farmer? Is he aware that the 1970 wool guarantee is exactly the same as it was 10 years ago and that this is particularly hard for the upland farmer, because he does not benefit directly from the increase in the fat lamb guarantee price?

Mr. Hoy

It must be remembered that the Government have maintained the wool guarantee at a high level in relation to the market price, and this accounts for about one third of the producer's return on wool. I do not agree with the latter part of the hon. Gentleman's question. He must know that the incomes of owners of hill flocks should benefit from the substantial increase in the guarantee for fat sheep of 3d. a pound, which was the highest since 1947.

Mr. Hooson

Will the right hon. Gentleman not agree that it is a matter of national concern that the sheep flock is going down and that there has been particular hardship in the hill areas? Is this matter being kept under review this summer, in view of certain undertakings given by the Minister at the time of the Review?

Mr. Hoy

Yes, but it is true that the flock is not going down in the uplands. We thought that it was right to put up the end price, as all farmers have asked. The flock is going down in the lowlands, and we hope by these means to increase it so as to increase the flock overall.

18. Sir J. Gilmour

asked the Minister of Agriculture, Fisheries and Food what estimate he has made of the net value to the producers of the 1970 United Kingdom wool clip; and if he will make a statement.

Mr. Hoy

I am advised by the British Wool Marketing Board that it estimates the return to wool growers from the 1970 clip, net of their marketing costs and based on a forecast clip of 65 million lbs., to be over £12.25 million.

Sir J. Gilmour

Would the right hon. Gentleman not agree that there is a reduction in the return from wool? Why was no cognisance taken of this during the Price Review to safeguard the production and marketing costs increases which have happened?

Mr. Hoy

It certainly was taken into consideration. That is why, as I said in reply to a previous question, we decided to put 3d. per pound on the end price for fat sheep.