§ 1. Sir Robin Turtonasked the Minister of Agriculture, Fisheries and Food what discussions have been held with the Intervention Board for Agricultural Produce and with the relevant trade association in the light of the unwillingness of many seed mechants to claim denaturing premia on seed wheat.
§ 41. Mr. Biffenasked the Minister of Agriculture, Fisheries and Food what discussions he has had with other Common Market Agriculture Ministers concerning the availability of denaturing premia for seed wheat.
§ The Minister of State for Agriculture, Fisheries and Food (Mr. Anthony Stodart)My Department's officials are in constant touch with the Intervention Board and interested trade associations on all aspects of denaturing. There have been no discussions in the Council of Ministers about the availability of denaturing premia for seed wheat, but I would refer my hon. Friend the Member for Oswestry (Mr. Biffen) to the answer I gave him on 8th May.—[Vol. 856, c. 82.]
§ Sir Robin TurtonAs other farmers in the Community are taking advantage 1704 of this extraordinary loophole in the common agricultural policy regulations, and as British taxpayers are contributing to the cost, surely either the British farmers should be enabled to participate or my right hon. Friend the Minister of Agriculture, Fisheries and Food should take up the matter with the Council of Ministers to stop the loophole?
§ Mr. StodartI am aware that some merchants have said—I think on ethical grounds—that they would prefer not to handle denatured wheat, but there is no reason why others should not do so and in that way give farmers the benefit of cheaper seed wheat.
§ Mr. BiffenDoes not my hon. Friend agree that the denaturing premia on wheat was intended to render it suitable for non-human consumption rather than to provide a subsidy for seed wheat? Does not the common agricultural policy cost the taxpayers and consumers of Europe collectively quite enough without this piece of nonsense? Will not the Minister take an initiative at the Council of Ministers to secure an agreed arrangement whereby the denaturing premia will not apply to seed wheat?
§ Mr. StodartThis matter may well be discussed in future, but at the moment the regulation allows seed wheat to qualify for the premia. So long as that regulation is in existence it is right that the British farmer should be enabled to get the benefit of it. The British taxpayer also gets the benefit of it because denaturing premia payments come from EEC funds.
§ Mr. MackieAre not denaturing premia simply a subsidy to reduce the price of feeding stuffs and seed wheat, which is what hon. Members on both sides of the House want?
§ Mr. StodartI absolutely agree. I had that in my note on a later Question.
§ 3. Dr. Gilbertasked the Minister of Agriculture, Fisheries and Food how much has been paid by the United Kingdom Intervention Board for the denaturing of wheat since 1st February 1973.
§ 17. Mr. Liptonasked the Minister of Agriculture, Fisheries and Food how much 1705 the Intervention Board has paid in subsidies for the denaturing of grain since February 1973.
§ Mr. Anthony StodartBy 20th June 1973 the Intervention Board had paid out approximately £4,043,000 in respect of the wheat denaturing subsidy.
§ Dr. GilbertRegardless of the trailer that the Minister has given of his answer to a supplementary question, does he not think that a system that involves us in the expenditure of large sums of money just to keep the price of food for human beings high is crazy? The Minister wants to keep the price of beef low, but has not the system been so unsuccessful that the price of beef is now higher than it was before?
§ Mr. StodartAfter having exhausted himself on the study of the sex life of hops, I congratulate the hon. Gentleman on turning to the study of the denaturing of wheat. There is nothing new about it. For years wheat has been used for animal feeding, and in this way it becomes a useful and cheaper product for human consumption at the end of the day.
§ Sir Harmar NichollsHow large is the wheat crop in the United Kingdom and how much of it is usually sold as feeding stuffs?
§ Mr. StodartKnowing that the hon. wheat crop is about 4½ million tons, and about 2½ million tons is used for feed.
§ Mr. LiptonWhat is the point of denaturing wheat—which animals will eat anyway without its being denatured—unless the idea is to maintain an artificially high price for grain and to increase bread prices as a result?
Mr. Stodart: Knowing that the hon. Member for Brixton (Mr. Lipton) has an interest in the rolling acres and waving wheatfields of Brixton, I assure him that the object is to assist in a process on which I thought the Opposition were quite keen, namely in helping to produce a subsidy.
§ Mr. JayBut as animals are willing to eat wheat that has not been denatured, is not the sole purpose of denaturing to keep up the price of wheat for home consumption?
§ Mr. StodartNo, Sir; it is to make wheat cheaper for animal feed.