HC Deb 03 July 1975 vol 894 cc1655-7
4. Mr. Arthur Jones

asked the Minister of Agriculture, Fisheries and Food when he proposes to initiate his programme of expansion of British agriculture.

8. Mr. Lawrence

asked the Minister of Agriculture, Fisheries and Food if, in the light of the 26 per cent. fall in farming incomes in 1974, he will expedite the implementation of the Government White Paper on the expansion of British agriculture.

37. Mr. Michael Latham

asked the Minister of Agriculture, Fisheries and Food whether he will now make a statement on the details of how he proposes to implement the Government's long-term proposals for agriculture.

Mr. Peart

The White Paper set out guidelines for agriculture and the development of our agricultural policies over a period of years. Nevertheless, as foreshadowed in the White Paper, discussions are in progress with the interests concerned about whether there are specific measures which it would be right and practicable to take in furtherance of our aims.

Mr. Jones

The Government's White Paper, "Food from Our Own Resources" said that the potential from greater use of home produced grass was still very great and went on to refer to an intensified programme of work by the advisory services. Does that programme refer specifically to the irrigation and conservation techniques? What progress is being made?

Mr. Peart

The hon. Member is quite right to ask me this question and to seek an indication of my thoughts upon it. Among the issues being discussed are the effectiveness of capital and production grants, including possible ways of providing incentives for the better use and conservation of grass. Other matters include such things as the green pound. I accept what the hon. Member said about grass conservation.

Mr. Gwynfor Evans

Is the right hon. Gentleman aware that the number of registered milk producers in Wales has declined from 27,500 in 1955 to 11,300 at present and that this is doing tremendous injury to the rural communities of Wales? Is he also aware that in the year which ended 30th April this year no less than £266 million worth of butter was imported into Britain? Can we not, in an expansion programme, produce this for ourselves?

Mr. Peart

I agree with the hon. Gentleman. As the Parliamentary Secretary has said in reply to a series of questions, we want to reverse the decline in the dairy herd. I am having, and have had, talks on this matter. I accept that the situation is serious and that it must be put right.

Mr. Graham

In any discussions which take place, particularly with the Treasury, will my right hon. Friend take the opportunity of pointing out that the White Paper was drawn up after wide consultations, that it has been universally welcomed by consumers and producers as a sound base for both expanding our agricultural economy and of saving money, and that the Treasury action to help implement these policies will he warmly welcomed?

Mr. Peart

Naturally—[Interruption.] That is not in my brief! The White Paper recognises the producers' need for assurances about their future levels of return. I think I have said in the House on previous occasions that they must, however, get their principal incentive for expansion from the Market.

Mr. Lawrence

Is the Minister aware that in 1974 farming income fell by 26 per cent. and that the farmers now feel threatened by the Community Land Act, the capital transfer tax, the proposed wealth tax and the possible re-rating of agricultural land? Is he also aware that only an immediate injection of capital will give back to the farmer the confidence that he needs? Will the right hon. Gentleman say when he will give that immediate injection of capital?

Mr. Peart

I do not want to repeat the history of the Conservative Party in this area. It encouraged people to get out of milk production and to go into livestock production. Conservative Members made a mess of it, and they know it. When I took up my present position my job was to try to bring back confidence. Indeed, in the beef sector we have done so. I want to reverse the present contraction in the dairy industry.

Mr. Mark Hughes

Will my right hon. Friend confirm or deny the rumour that the European Commission wishes to use price lowering as a means of reducing milk production throughout the EEC? What will my right hon. Friend do to prevent that happening, so that our dairy farmers are not forced to produce even less?

Mr. Peart

I give the assurance to my hon. Friend that I shall resist it strongly.

Sir John Hall

In view of the bitterly grave situation of the milk supply and the answers given by the Parliamentary Secretary to an earlier question, will the Minister say categorically that there is no danger at all of milk rationing within the next 12 months or so?

Mr. Peart

In my view talk of milk rationing is panic mongering.

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