Dairy Farmers

HC Deb 07 February 1974 vol 868 cc1348-51

5. Mr. Biffen

asked the Minister of Agriculture, Fisheries and Food what is the maximum increase that can be paid to United Kingdom dairy producers in the current price review, having regard to the phased harmonisation arrangements and possible increase in the standard quality of milk permitted under the Treaty of Accession and the current proposals for milk and dairy products in the Common Market price review.

Mr. Godber

The operation of EEC Regulation No. 749/73 is being considered with the European Commission.

Mr. Biffen

Is my right hon. Friend aware that I much regret that such a straightforward and precise Question could not have had a more explicit answer? Will he please take into account the fact that the national dairy industry is going through grave economic circumstances which require a national solution based upon the unique national circumstances of the high cost of imported feeding stuffs? Will he kindly draw that to the attention of his fellow Ministers in Brussels, irrespective of the requirements of Regulation No. 749/73?

Mr Godber

My hon. Friend may be assured that what my answer means precisely is that that is just what I am doing. That is why I cannot expand on it at present. I am acutely aware of this problem and am discussing it at this time. That is why I cannot make a fuller statement.

8. Mr. Pardoe

asked the Minister of Agriculture, Fisheries and Food what was the average price received by British dairy farmers for each gallon of milk produced in the last three months of 1970 and 1973; what was the percentage increase between these dates; and what estimate he has made of the average increase in the price paid by dairy farmers for dairy herd feed stuffs over the same period.

65. Mr. Gwynoro Jones

asked the Minister of Agriculture, Fisheries and Food what was the average price received by dairy farmers for each gallon of milk produced in the last quarters of 1970 and 1973, respectively.

Mr. Godber

Dairy farmers in England and Wales received, on average, 19.8 pence per gallon for milk produced in the last three months of 1970 and 24 pence per gallon for the same period in 1973—an increase of something over 21 per cent. In the corresponding period the average price of dairy compound feeding stuffs rose from £40.62 to £66.92 per ton.

Mr. Pardoe

Is the Minister aware that the figures which he has given are the reason for the total loss of confidence of dairy fanners throughout this country in the present Government's agricultural policies? What estimate has the right hon. Gentleman made of the bribe necessary to buy back the dairy farmers' vote, and will he guarantee that that bribe will be announced by the Government before 28th February?

Mr. Godber

I am not clear from the hon. Gentleman's question and the felicitous way in which he put it whether he is seeking to prevent me from giving farmers a fair return. That would be an unfortunate interpretation, but that is what it sounded like. The hon. Gentleman must be fully aware that the sole reason why we have brought forward the price review, and the reason why we have said that we will bring it forward at an early stage and announce it as soon as possible, is that we know of the problems facing dairy farmers as a result of the explosion in world prices for cereals, and we intend to do something about it.

Mr. Winterton

Is my right hon. Friend aware of the total reliance that livestock and dairy farmers are putting on this year's price review? Will he assure the House that he will bear in mind the up-to-date costs before he announces the award? Will he also assure the House that the minimum increase on milk will be 6p a gallon?

Mr. Godber

I assure my hon. Friend that I have been studying the figures with great care. I shall announce the result as soon as possible, but I have not the slightest intention of engaging in an auction on this matter in the House.

Mr. Jones

Is the Minister aware that by doing absolutely nothing for the last nine months he has totally lost the confidence of dairy farmers? Does he not realise that in the last three months of 1973 milk production fell by 20 million gallons—a fall for the first time since 1964?

Mr. Godber

I am surprised that the hon. Gentleman should be so unaware of the normal practice in this matter. Over the last 20 years there has never been an occasion when an amendment has been made to a price review between the annual awards. This is the standard procedure It was only in the last three months of last year that the problem arose. In 1970 there was not a review award, there was a sum which my right hon. Friend gave to the industry to overcome the appalling condition in which the Labour Party had left farming when it left office. But this is dealing with those affairs which go from year to year according to market conditions and not according to political ignorance or prejudice, which was the cause of the 1970 collapse.

Mr. Boscawen

Is my right hon. Friend aware that if he restores profitability to the dairy industry, as I believe he will, it will be the best value for money that British housewives can possibly have?

Mr. Godber

Yes. In the atmosphere of today it is important for us to remember that dairy farmers are doing a very hard and difficult job, for seven days a week, and that it is the duty of the Government of the day—whatever Government—to see that they get a fair return.

Mr. Douglas

Will the Minister accept that the plight of the small dairy farmer is extremely grave at present because of his reliance on the cheque that he gets for his milk? Therefore, it is of the utmost importance to remedy immediately this difficulty between the price received and the price that farmers are paying. Will the Minister concede that whatever the figures are for the slaughtering of the dairy herd in England and Wales, and allowing for the fact that he is not directly responsible, slaughtering of the dairy herd in Scotland has increased in the last three or four months?

Mr. Godber

There is a lot of truth in what the hon. Member says. I do not deny that there is a difficult situation; that is why I have brought the review forward. I want to announce it as soon as possible. I am only sorry that some Labour Members may not be in the House to hear me announce it.

Mr. George Cunningham

On a point of order, Mr. Speaker. You will appreciate when you hear my point of order why I could not delay it until later. I realise that you are doing your best to call supporters and opponents of the Government in a fair manner, as you normally do. Nevertheless, you are in a manifest difficulty of finding someone from the Government benches to support the Government on prices. Will you invite someone—[Interruption.]

Mr. William Hamilton

Let them put up their hands.

Mr. Speaker

Order. That is not a very orderly intervention, even at an election meeting.