Agriculture (Support) (Hansard, 27 October 1970)

§ 3. Mr. Strang
asked the Minister of Agriculture, Fisheries and Food if he will now make a statement on the changes he intends to make in the present system of Government support for agriculture.

§ 19 and 20. Mr. Peter Mills
asked the Minister of Agriculture, Fisheries and Food (1) if he will introduce an import levy scheme for cereals;

§ 24. Mr. Farr
asked the Minister of Agriculture, Fisheries and Food what plans he intends to introduce to enable beef producers to obtain a profitable return from the market.

§ 48. Mr. William Price
asked the Minister of Agriculture, Fisheries and Food if he will make a further statement on the future of agricultural subsidies.

§ Mr. Prior
It is Government policy to change the present system of support. We 5 are telling our principal overseas suppliers of our intention to introduce at an early date higher minimum import prices for cereals and new levy schemes for beef, mutton and lamb and milk products other than butter and cheese. We propose to carry out the necessary negotiations with our suppliers as quickly as possible. We shall also be consulting the domestic interests concerned.

§ Mr. Strang
Assuming that the Government's proposed new lack of support policy for agriculture will contain both target prices and fall-back guarantee prices, will the Minister give an assurance that the level of the fall-back guarantee prices will not be fixed at a level less than the present guaranteed prices? I am sure that he would agree that that is a very reasonable assurance to seek, since target prices will be fixed higher than the present guaranteed price levels.

§ Mr Prior
There is no question of any lack of support in the Government's proposals for agriculture. I think that farmers will have a good deal more confidence in our policy than they had in the policy of hon. Gentlemen opposite.

§ Mr. Mills
I welcome what the Minister said, but is it not absolutely essential, particularly with milk, that he gets on with this task as quickly as possible, since the dairy farmers could find a reduction in their income, particularly if there is any cut in welfare and school milk?

§ Mr. Prior
That, of course, is another question. However, as for negotiating a levy system for minor milk products, we will get on with that straight away.

§ Mr. Farr
Is my right hon. Friend aware that, despite the recent very welcome increase in the price of beef, there is still a tendency among fatteners to sell winter fodder off at the very high present level of prices and not fatten cattle at all? What will he do about that?

§ Mr. Prior
It is hard to please everyone. Since the announcement of the increase in prices, the market for fat cattle and store cattle has improved considerably.

§ Mr. Cledwyn Hughes
Will the right hon. Gentleman answer the very important question of my hon. Friend the Mem- 6 ber for Edinburgh, East (Mr. Strang)? He failed to give an answer to a question in which every farmer in the country is interested. Second, now that he is embarking on these very important negotiations, would he say whether, if they fail, the Government are proposing to impose the levies unilaterally?

§ Mr. Prior
There is no question of these negotiations failing. The Government are determined to make this change. I want to make it plain that that is Government policy. On the fall-back guarantees, we have agreed that the present system should last through a transitional period of not less than three years. During that period, we shall be consulting the whole industry to see what new system can be brought in.