HC Deb 22 November 1973 vol 864 cc1534-5
3. Mr. Strang

asked the Minister of Agriculture, Fisheries and Food what representations he has received about cereal prices; and if he will make a statement.

Mr. Godber

I assume that the hon. Gentleman is referring to the price of cereals for animal feeding stuffs. Discussions with the farmers' unions on this question have been taking place since early August. I have made clear on a number of occasions that these matters will have to be dealt with at the forthcoming annual review.

Mr. Strang

Will the Minister answer the question posed by my right hon. Friend the Member for Battersea, North (Mr. Jay) and admit that there is a levy on some barley imports and that if world prices fall, as the Minister suggests is happening, the common agricultural policy will prevent us from getting anything like the benefit we should out of that reduction?

Mr. Godber

As prices fall, so we shall get a direct benefit. Although the levies are having impact in some cases, it is a marginal impact on cereal prices. With cereal prices it is the level of world prices that matters. There has been some reduction, I understand, and I believe that one feeding stuff manufacturer has reduced the price of some of his products by between £2 and £4.50 a ton.

Mrs. Kellett-Bowman

While we are discussing levies, may I suggest how to restore confidence to livestock farmers and prevent the fear of a repetition of what happened this year to feeding stuff prices? Will my right hon. Friend consider announcing now or in the near future that, if cereal prices rise as sharply next year, he will consider putting a levy on the sale of cereals in order to keep down the price of feeding stuffs and thus establish a fund for that purpose?

Mr. Godber

That is an interesting proposal. I should be perfectly happy to discuss it with leaders of the NFU to see what their attitude would be towards it. However, I think there might be difficulty in getting unanimity of view on it.