HC Deb 20 November 1974 vol 881 cc1316-7
17. Mr. Monro

asked the Secretary of State for Scotland what evidence he now has about the lack of profitability in the beef sector of farming in Scotland.

Mr. Hugh D. Brown

Low market prices since midsummer have resulted in increasingly unsatisfactory returns to beef producers in Scotland and elsewhere in the United Kingdom. My right hon. Friend the Minister of Agriculture, Fisheries and Food has made considerable progress in the discussions this week in the Council of Minsters (Agriculture) about changes in our support arrangements and intends making an early statement.

Mr. Monro

Is the hon. Gentleman aware that the Government are entirely responsible for the beef cattle crisis this summer and autumn, and does he realise that this is because of the removal of the intervention and the floor in the market in March by his right hon. Friend? Because of this, millions of pounds have been lost to farming and, of course, thousands of calves have been slaughtered unnecessarily. Does the hon. Gentleman accept that we welcome what appears to be a complete reversal of policy by his right hon. Friend, in that he will now introduce a floor and an intervention price, but that we feel that it is far too little and far too late?

Mr. Brown

That was an interesting preamble. A good case never needs to be exaggerated. The representations which have been made to me and my right hon. Friends were taken on board and were included in the discussions to which I referred. I am hopeful, as I said, that the Minister will be able to make an early statement. As he has already said, considerable progress has been made. I think that we should await the outcome with some optimism.

Mr. Buchan

Does my hon. Friend not agree that the the origins of the trouble were the appalling terms negotiated by the Conservative Party, particularly the destruction, in the spring of last year, of the guarantee price and deficiency payments system? Does he accept that I am delighted that his right hon. Friend has made progress in Brussels? This must mean that all the Press reports today which have said that he has adopted an intervention policy are false. I am glad to have that assurance.

Mr. Brown

I am not too sure that my hon. Friend is glad that considerable progress has been made—[HON. MEMBERS: "Oh."] Well, he did not sound like it. I agree entirely that the troubles began two years ago, but they are complicated and not merely due to the requirements which have been placed on the agriculture industry by our membership of the EEC.

Mr. Fairgrieve

Does the hon. Gentleman realise that if rumours emanating from Brussels are correct, the Minister is only now taking action which was available to him in March, and that British agriculture has suffered unnecessarily in the interim, and probably the consumers in the longer term?

Mr. Brown

No, that is grossly unfair. Hon. Members opposite must appreciate that the major responsibility for our being in the EEC in the first place was theirs, and it does no good to exaggerate this matter. Even our worst critics among the farmers appreciate that we have achieved greater flexibility within the agricultural arrangements than people expected us to get. I think that that is desirable, and it is consistent with what I said about considerable progress having been made this week.

Mr. Buchanan-Smith

Mr. Speaker—

Mr. Speaker

No, we are beyond the time.

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