HC Deb 31 July 1975 vol 896 cc2032-4
6. Mr. Farr

asked the Minister of Agriculture, Fisheries and Food what action he proposes to take in the light of the present difficulties of beef farmers; and if he will make a statement.

Mr. Bishop

The recent fall in market prices has not affected the total returns received by beef fatteners. These are fully maintained by the premiums. Average total returns in Great Britain for the week beginning 14th July were, for example, £22.94 per live hundredweight. As regards future prospects and the particular interests of calf and store producers, I refer the hon. Member to the answer my right hon. Friend gave to the hon. Member for Cornwall, North (Mr. Pardoe) on 24th July.—[Vol. 896, c. 271.]

Mr. Farr

As the production of beef is such a lengthy business, necessitating much long-term planning, will the Minister give a certain amount of stability and reassurance to the industry by promising that the present beef arrangements will be continued through 1976 and beyond, if necessary?

Mr. Bishop

I am sure that the hon. Gentleman appreciates that I am unable to answer that question in detail, because my answer would depend on the annual review and other negotiations concerning the EEC. He will realise that we have given the seasonal prices, which go right through to the end of February. This has been welcomed by the farmers' unions and others, and will give a degree of confidence. In addition, assuming that the present beef arrangements continue, there will be the further increase in our intervention price of at least £1 per live hundredweight, when we take the next transitional step towards the common guide price at the beginning of the 1976–77 marketing year. These things are likely to give confidence to the industry, and I have no doubt that when the new prices are being considered the current situation will be taken into account.

Mr. Watkinson

No doubt my hon. Friend will be aware that one of the major problems facing the livestock industry is the problem of fodder in the coming winter. What measures will the Government take to alleviate this situation? Will my hon. Friend consider issuing an order to prevent the burning of straw?

Mr. Bishop

My hon. Friend obviously shares the general concern about the fodder situation—a concern that we had last winter. The fact is that although the fodder supply situation is one of smaller quantity, the indication at present is that the quality is much better. There has been appreciation of the work of the ADAS in helping farmers in this situation. The points made by my hon. Friend will be borne in mind.

Mr. Stephen Ross

Does the Minister accept that due to the extreme drought conditions prevailing, largely in the South of England, many farmers, including myself, are already feeding hay? Will he give serious consideration to lowering the minimum classification limit for stores and heifers, as one way of alleviating the situation? If he lowered it to 5 cwt. it would help the store situation this autumn, which is likely to be disastrous.

Mr. Bishop

I appreciate the hon. Gentleman's concern. I shall bear those points in mind.

Mr. Hardy

Will my hon. Friend answer the point made by my hon. Friend the Member for Gloucestershire, West (Mr. Watkinson)? Could we not have some more decisive action on the question of straw burning?

Mr. Bishop

This matter has been considered by my right hon. Friend, but we do not think that any action is necessary at present. However, we shall bear the matter in mind, with other measures which may be necessary.

Mrs. Kellett-Bowman

Is the Minister aware that my farmers will be relieved to learn that his right hon. Friend has got around to discussing with the unions concerned the appalling problems of hill farmers? However, is the Minister further aware, from the many letters he has received on the subject of last week's package, of the serious plight of my farmers, which that package will do nothing whatever to relieve? Does he appreciate that my farmers need action, not words, and that unless they get some cash in their pockets—for example, by a restoration of the cut in the calf subsidy, and the immediate payment of a further hill cow subsidy—they will be unable to buy the fodder which, despite what the Minister has said, will be in very short supply this winter, because the barley is very short on the stalk and whether or not they burn it there will be very little of it?

Mr. Bishop

I think that the hon. Lady will realise, as we do, that the industry needs profits, and not prophets of doom. The Government are seeking to ensure the former, while the Opposition seem to be looking after the latter. The hon. Lady has obviously overlooked the fact that for the beef industry the package announced a few days ago by my right hon. Friend amounts to about £31 million net, in aid to the industry. As to the hill cow subsidy, the hon. Lady will recall that not long ago we brought forward the payment to the early part of the year, which helped farmers' cash flow. This is a move which cannot be easily repeated. However, the points made by the hon. Lady are being borne in mind. Indeed, they were under discussion with the President of the NFU, whom we met this morning.