§ 5. Mr. Farrasked the Minister of Agriculture, Fisheries and Food what measures he proposes to take in conjunction with the EEC to restore stable trading conditions in the United Kingdom grain market.
§ Mr. GodberI am very much aware of the problems now being faced by United Kingdom grain traders. They largely reflect difficulties in the international market arising from bad harvests, high world prices and fluctuations in currency values. The transitional arrangements agreed with the Community have enabled us to import cereals at less than the EEC threshold prices but of course leave us subject to all the fluctuations in world prices.
The new system of monetary compensatory amounts introduced recently is simpler in operation and will be of some help. We are also having discussions with our partners in the Community about the prefixing of levies and of accession compensatory amounts.
§ Mr. FarrI am grateful to my right hon. Friend for that reply. Is he aware that forward buying of grain on the domestic market at present is virtually impossible? Will he take urgent steps to restore the position? If forward stable buying is able to take place it will do a great deal to bring about stability in the prices of all products derived from cereals.
§ Mr. GodberI am obliged to my hon. Friend for those comments. I have discussed this matter recently with representatives of the grain trade, and we shall do all that we can to facilitate an improvement here. The real problem is not only very short world harvests but difficulties of supply between countries and doubts about the availability of supplies. It is this which has led the grain market to be very uneven in recent weeks.