HC Deb 05 June 1972 vol 838 cc33-6
Mr. Alfred Morris

(by Private Notice) asked the Minister of Agriculture, Fisheries and Food if he will make a statement on the EEC suspension of import duties on beef and the effect of this on meat prices in this country.

The Minister of Agriculture, Fisheries and Food (Mr. James Prior)

The EEC has suspended its import duties on beef in response to increasing prices there. After consulting our major preferential overseas suppliers we shall be similarly suspending our import duties on fresh, chilled and frozen beef and veal. An order is being laid to become effective at midnight tomorrow, 6th June.

The recent increase in beef prices here has essentially been the result of the worldwide shortage of beef combined with the fact that domestic supplies are currently at a seasonally low level. But those should soon increase as more grass-fattened cattle become available. It is in the best interests of producers and traders as well as of consumers that unfair advantage should not be taken of recent price movements. The Government are naturally very concerned and will continue to keep the situation under close review.

Mr. Morris

Is the right hon. Gentleman aware that the anxiety among meat traders is matched by the anger among British housewives? Is he aware also that there are millions in the low income groups who feel that they are now being priced out of the meat market? Will he urgently consider what further action he can take, by preference, through genuine international agreement, to stop or at least to stem the flood of beef exports from this country?

Mr. Prior

The hon. Gentleman must realise that it is Community policy, while we are still outside the Community, which is bringing about the present situation—[HON. MEMBERS: "Oh!"] Had right hon. and hon. Members opposite, who support a world market situation, taken the correct steps to ensure that there were adequate supplies of beef in this country, we should not be in this muddle today.

Sir Robin Turton

Does not the present situation present us with an opportunity to restrict British exports of meat to carcase meat and so avoid having to send animals abroad for very long journeys in defiance of the Balfour Assurances?

Mr. Prior

If there are cases of defiance of the Balfour Assurances, we take them up, and we shall continue to do so. As for exports generally, we have to be careful that in banning or controlling exports from this country we do not merely divert what would be imports to this country from countries like Ireland and the Argentine, causing them to turn right instead of left as they come up the Channel. We are concerned to see that we have the maximum supply of beef in this country.

Mr. Peart

May I ask the Minister what action he took about the decision of the European Commission to make its stand on duties? Surely the British Government must have made some protest, because it is due to the action of the Community and of the Commission that they will have supplies diverted from this country?

Apart from that, is it not a fact that for a long time the right hon. Gentleman has encouraged a high price policy? Is he aware that that policy is opposite to that advocated by the Prime Minister at the last General Election, when he dishonestly said to the British housewife that he was going to reduce prices? What action is the right hon. Gentleman going to take now, not only about supplies but also to control prices?

Mr. Prior

If I may answer the last part of the right hon. Gentleman's question first, what the Government and I have consistently supported is a proper price for British agriculture which enables it to expand production. That is what we did not have all through the 'sixties, and that is the problem. Since we have been in office there has been a considerable expansion of beef production in this country, which is what we want.

The answer to the first part of the right hon. Gentleman's question is that we would have preferred the Community to remove its tariff in stages, instead of all at once. We made representations to that effect, but we are outside the Community now. We are in the position which the right hon. Gentleman wants us to be in, and I think that is the wrong position.

Mr. Charles Morrison

Would not my right hon. Friend agree that it is about time the Labour Party realised that it takes time for animals to grow into beef, and that the position today is the result of the inadequate encouragement given by hon. Gentlemen opposite when they were in power? Could my right hon. Friend give the figures for calf slaughterings? Do they not compare favourably with the position in 1969–70?

Mr. Prior

The answer is in two parts. First, beef production is now expanding at a record rate of about 50,000 tons a year, which is very satisfactory. If one looks at the figures for calf slaughterings, which are of great importance for future beef supplies, one sees that they fell from 471,000 in 1968–69 to a forecasted figure for 1972–73 of 180,000. That is the best indication that one could have.

Mr. John Morris

As the right hon. Gentleman is aware that it takes two years for beef to become ready for market, was he not aware that the action of the European Community would accentuate the situation? What plans did he have to deal with the situation? Is not his statement today a confession that his representations were not listened to? Will not prices continue to rise? Has not the right hon. Gentleman all along been an evangelist for high prices? Does he now blame the workers for seeking justice when they see the value of their wages going down and not up?

Mr. Prior

There is a good deal of difference between wishing to see a price which enables expansion to take place and wishing to see a price which is unrealistic in terms of production, which is what is happening now. There will not be an expansion in a commodity like beef unless there is long-term confidence in the agriculture industry.

If the right hon. Gentleman consults his farming constituents, they will tell him a different story on what they feel about prospects for the future compared with two years ago. What is important for the housewife and for this country is that we should not be at the mercy of fluctuations in world demand but should come to depend much more on our own resources, which we shall in future.

Mr. Evelyn King

Is it not a simple fact of nature that it takes two years to get beef from the farmer to the butcher's slab? If, therefore, there be any shortfall in supplies now it is directly, and only, attributable to the policies of two years ago.

Mr. Prior

From my knowledge of agriculture, it is a minimum of two years, and really it is considerably longer than that. All I say to my hon. Friend is that I believe this to be a temporary situation and that within a few weeks we should be seeing a very different story.

We have had a Private Notice Question today on the subject of increased beef prices. I was hoping that we might have had a Private Notice Question from the Opposition on the decline in butter prices.

Mr. Ewing

If the world shortage is so acute, how is it that the right hon. Gentleman did not foresee what happened over the weekend, and why did he not take action more quickly to deal with the situation? Will he be offering his resignation as a result of this recent failure in a long line of failures on his part?

Mr. Prior

The hon. Gentleman must recognise that the Community has acted from today. The reduction in tariffs takes place from today and we are reducing our tariffs from tomorrow. I do not believe that the hon. Gentleman can substantiate the accusation that we have not acted quickly.

Several Hon. Members

rose—

Mr. Arthur Lewis

On a point of order, Mr. Speaker. In view of the seriousness of the matter and the fact that urgent action ought to be taken, if the usual channels agree to switch today's business in order to discuss the question of meat supplies and prices would you agree to the House having an immediate debate on those matters?

Mr. Speaker

That is not a point of order for me.