§ 18. Mr. Deakinsasked the Minister of Agriculture, Fisheries and Food what is 242 his estimate of the effect of the recent Price Review determination for pigs upon the size of the pig herd.
§ Mr. PriorThe immediate effect of the increase in the guaranteed price should be broadly to maintain profitability when production is stabilised within the middle band of the flexible guarantee. I cannot speculate on the longer-term trend in the size of the pig herd, but, if necessary, the Government will review the operation of the flexible guarantee arrangements later on in the year to encourage the desired level of production.
§ Mr. DeakinsIs it not a fact that the February determination under the flexible guarantee arrangement showed the pig herd, or estimated marketings for the year ahead, to be at the top of the mid-band of 14.7 million, and is it not, therefore, almost certain that in May there will he a cut under the mid-band, unless the Government take emergency action, which will take away from pig producers with one hand what the Government gave them with the other at the Price Review?
§ Mr. PriorThe hon. Gentleman knows very well how the middle band operates; it is designed to keep pig numbers broadly in line with the increase in consumption. I cannot speculate too far ahead, but it seems to me that there is a fairly strong chance that there will be a cut in May.