HC Deb 11 April 1974 vol 872 cc609-12
2. Mr. Blaker

asked the Minister of Agriculture, Fisheries and Food whether he will make a statement about his proposals for the expansion of the horticulture industry.

The Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food (Mr. Roland Moyle)

The Farm and Horticulture Development Scheme and the Horticultural Capital Grant Scheme provide encouragement to growers to modernise and, where appropriate, expand their production.

Mr. Blaker

Is the hon. Gentleman aware that his right hon. Friend was reported in the Grower magazine of 16th March as saying that he was anxious to see horticulture expand and that he hoped to see more access to this country for low-cost producers? How does he reconcile those two statements? Are we to be forcibly fed on tomatoes and have subsidised chrysanthemums?

Mr. Moyle

I think my right hon. Friend was drawing attention to the desirability of having stable and reasonable prices for consumers in this country at the same time as encouraging the horticulture industry.

16. Mr. Michael Latham

asked the Minister of Agriculture, Fisheries and Food what representations he has received since 21st March regarding the current difficulties being faced by the horticulture industry; what reply he has sent; what action he proposes to take; and whether he is now in a position to make a statement on his policy on this matter.

4. Mr. Adley

asked the Minister of Agriculture, Fisheries and Food if he is now in a position to make a statement on the steps he intends to take to alleviate the hardship caused to the horticulture industry by the increased cost of oil.

22. Mr. Biggs-Davison

asked the Minister of Agriculture, Fisheries and Food if he has completed his consideration of the cost of fuel oil to horticulturists; if he will provide relief for Lea Valley growers affected by the increase of oil fuel prices; and whether he will make a statement.

The Minister of Agriculture, Fisheries and Food (Mr. Fred Peart)

I intend to introduce a temporary subsidy at a flat rate for all types of heating oils in circumstances in which the grower already qualifies for rebate of the 1p a gallon excise duty. A payment of 6p a gallon will be made on oil delivered in the first six months of this year and 4p a gallon for the second six months. There will be no subsidy on oil delivered after 31st December 1974.

Payments will he made under the authority of the Appropriation Act and a Supplementary Estimate will be presented in due course. One provisional estimate of the cost is £7 million.

In accordance with our treaty obligations our intention to introduce this new subsidy is being notified to the EEC Commission and it will be discussed through Community institutions along with proposals for corresponding aids to their own producers put forward by other member States.

Mr. Latham

The House will be very grateful for this immediate cash injection and will want to consider the Minister's statement carefully. Constituents of mine have been working 70 or 80 hours a week and earning at the most £16 a week from their activities, and have even been reduced to living off their savings.

Mr. Peart

I am grateful for the hon. Member's comment. As for the method of payment, growers will make their normal claims for repayment of excise duty and the subsidy will be paid on the same evidence that the oil has been supplied.

Mr. Newens

Many of the growers in the Lea Valley would have faced bankruptcy if this decision had not been taken. They will receive the announcement with great pleasure.

Mr. Peart

I am grateful for those remarks.

Mr. Maxwell-Hyslop

Does the Minister not appreciate that welcome as the announcement is it will be almost entirely offset by the Chancellor's VAT proposals, which mean that the horticulturist, on average, will have to support, out of his meagre cash flow, six weeks' consumption of oil and the VAT on it, and that therefore the right hon. Gentleman is only giving with one hand what the Chancellor is proposing to take away with the other?

Mr. Peart

The hon. Member must be aware of the history of VAT. I have taken this decision and I am glad it receives the approval of the House.

Mr. Stephen Ross

The announcement will be extremely welcome to the growers in my constituency, where there has been rapid expansion in the last 10 years. Did I hear the Minister correctly to say that the arrangement would finish at the end of 1974? If that is so, why? I understand that in Holland these prices have been pegged until the end of 1975.

Mr. Peart

I think that the hon. Gentleman will appreciate that I have to have consultations and that in the circumstances the decision and the timing were right. However, I am, of course, always prepared to look at a subsidy.

Mr. Anthony Stodart

Will the right hon. Gentleman tell the House how this figure compares with the subsidies that we hear are to be given in other countries in Europe? Is he aware that in the middle of February I set an inquiry afoot within the Department to find this information in conjunction with the NFU? I was a little puzzled when, in reply to my hon. Friend the Member for Maidstone (Mr. Wells) last Friday, the Parliamentary Secretary said that he had no knowledge of such an inquiry. Has the right hon. Gentleman had the information that the inquiry was designed to bring out?

Mr. Peart

Naturally, I asked for the information. During the past few days, I have heard of the Dutch proposals for a subsidy at 2p per gallon. Other pro- posals have been made by the French and German Governments, but I understand that the details have not yet been settled.