HC Deb 20 March 1975 vol 888 cc1845-7
12. Mr. Winterton

asked the Minister of Agriculture, Fisheries and Food what are the latest indications he has of the prospects for the livestock industry in the light of the price review and the census for 1974.

18. Mr. Peter Mills

asked the Minister of Agriculture, Fisheries and Food, in the light of the December 1974 agricultural returns for England and Wales, what cutback in production is estimated by his Department.

24. Mr. Charles Morrison

asked the Minister of Agriculture, Fisheries and Food if he will take action designed to reverse the trend of falling agricultural production evidenced by recent figures.

35. Mr. Boscawen

asked the Minister of Agriculture, Fisheries and Food if he will make a statement on the December 1974 agricultural returns for England and Wales, showing the extent of the cut-back in United Kingdom livestock production in that year, and the steps he intends to take in the light of the returns.

Mr. Peart

Full details were announced last month of the results of the December 1974 agricultural census for England and Wales. Levels of future production will, however, depend on a number of further factors, such as the weather and, for example, levels of milk yield. On 17th February I announced substantial increases in guaranteed prices and in EEC farm support prices, together with a radically improved EEC beef régime.— [Vol. 886, c. 917.]

Mr. Winterton

I thank the Minister for his reply, but is he aware that the census to which he referred shows that the dairy herd is almost 5 per cent. down, that AI is at its lowest level in its history and that calf slaughterings are still at a high level?

Mr. Peart

I am aware of those facts, but that decline operated during the period of the Conservative Government. I have tried to arrest it by giving a very good dairy award, and I believe that the new beef régime that we achieved in Europe was a good thing.

Mr. Mills

How can the right hon. Gentleman say that he is the Minister of Food when he has allowed a severe cutback in home production? Is there not a very real danger that we shall have to supply our consumers with more and more imported food, making the balance of payments problem even worse?

Mr. Peart

The hon. Minister knows that it was his Government—and it was he as well as the Minister—who encouraged farmers to go from dairy to beef, and he knows too that the trend was current when the Conservatives were in power. I believe that I have given confidence through the annual price determinations and by what I achieved in Brussels.

Mr. Molloy

Can my right hon. Friend explain the logic of his replies to previous Questions on this matter and the fact that from time to time the EEC creates mountains of butter and beef which affect the livestock industry in Britain, these commodities then being sold to nations outside the Common Market at absurdly cheap prices? Is not this appallingly stupid policy by itself sufficient cause for us to consider whether we should remain in this banal organisation?

Mr. Peart

My hon. Friend must know—

Mr. Winterton

On a point of order, Mr. Speaker. In view of the unsatisfactory nature—

Hon. Members

Answer.

Mr. Speaker

Order. The hon. Member did not seem to complete his point of order, so the Minister may continue.

Mr. Peart

My hon. Friend must know that on several occasions in Brussels I have condemned this system. That was why I argued that we would not accept a system of permanent intervention as a means of support. That was also why I achieved the variable premium system.

Mr. Morrison

What representations did the Minister make to the Chancellor of the Exchequer before the introduction of the capital transfer tax? Does he not realise that this has destroyed any incentive to invest, and how on earth will he reverse the trend in production with that tax in existence?

Mr. Peart

That is another question altogether.