HC Deb 20 April 1971 vol 815 cc924-6
6. Mr. John E. B. Hill

asked the Minister of Agriculture, Fisheries and Food what new arrangement he has made for the stabilisation of the bacon market.

28. Mr. Peter Mills

asked the Minister of Agriculture, Fisheries and Food if he is satisfied with the present working of the bacon stabilisation agreement; and whether he will make a statement.

37. Mr. Scott-Hopkins

asked the Minister of Agriculture, Fisheries and Food whether he will review the Bacon Stabilisation Fund with a view to its abolition; and if he will make a statement.

Mr. Prior

The Government have decided to make some changes in the Bacon Curing Industry Stabilisation Scheme so as to stimulate closer attention to market conditions and reduce the cost to public funds. For 1971–72 the formula will provide for a pigmeat price at a lower level in relation to the standard price for pigs and for a bacon price not lower than 2½ per cent. below the average price of First Selection bacon from all sources. Curers will also be asked to provide information about costs and profitability of bacon curing.

Mr. Hill

Will this change, which is welcome as curtailing excessive public expenditure, affect the capacity of the home bacon curing industry to fulfil its share of the British bacon market as internationally agreed?

Mr. Prior

I do not think it will have any ill-effects on the ability of the curing industry to fulfil its quota, which is 26,000 tons above the quota for last year. What will decide the issue is whether we can produce bacon competitively. If we can, we can have a much bigger share of the market.

Mr. Mills

Will my right hon. Friend bear in mind that while the curing industry has made strides lately, much more needs to be done, particularly in the rationalisation of plant and seeing that there is a constant supply of good quality bacon? Will he remind the curers that this is what the Fund is all about?

Mr. Prior

I think the curers are well aware of some of their shortcomings, but they have been doing a better job recently. I have every confidence that in the next year or so they will improve on their previous performance by a large amount. It is important, to get stability into the industry, that the industry should know that it can go ahead on the assumption that it can get the pigs and can sell the bacon at a reasonable price.

Mr. Scott-Hopkins

Is my right hon. Friend aware that in the past the scheme has been one of the biggest drains on the public purse and that it has been quite unjustifiably used? Will he assure the House that in future the money will be properly used? Does he not agree that the bacon curing industry must take a proper grip on its methods of operation so that it operates efficiently and does not waste the taxpayers' money, as it undoubtedly has in past years?

Mr. Prior

I have impressed very strongly on the curing industry the need for greater efficiency. The purpose of the scheme which I am introducing is to make it go for a higher price and to force it to get a higher price for its products. Apart from that, the industry has to face subsidised imports from Denmark, and it has a right to further support from us at this stage.

Mr. Barnes

Will the right hon. Gentleman tell us what effect this change will have on the price of bacon in the shops?

Mr. Prior

At the moment bacon prices are lower than they have been for some years. The immediate effect in the shops will be absolutely negligible; but if the change brings about a small cut-back in British supplies going on to the market, I should expect to see some hardening of the price.