HC Deb 20 March 1975 vol 888 cc1831-2
4. Mr. Hawkins

asked the Minister of Agriculture, Fisheries and Food if he estimates that the present guaranteed prices for cereals are adequate to safeguard producers in the coming year; and if he will consider moving direct to EEC guaranteed price levels.

Mr. Peart

The substantial increases in the guaranteed prices for cereals recently announced should provide an adequate safeguard for producers' returns in the coming year, and I see no reason at present to contemplate any further measures.

Mr. Hawkins

Is not the right hon. Gentleman aware that the new guarantee prices do not take sufficiently into account the increased prices of fertilisers, fuel, machinery and other matters? Will he not now make an application to the Council of Ministers to go to the end price—that is, the full price of the EEC —so that there is not unfair competition with our farmers?

Mr. Peart

The hon. Gentleman must appreciate that we are always watching the transitional period. I am limited in that respect. The hon. Gentleman will remember that coming out of the last review there was a target price for wheat, for example, which was an increase of 9 per cent. For maize there was an increase of 10.5 per cent. and for barley an increase of 9.4 per cent. I believe that this is adequate.

Mr. Jay

But is not this Question a request for cereal prices to be raised even higher and an admission of what is, of course, true namely, that world prices of grain as well as of other foods have now fallen below EEC levels and that the EEC has reimposed import levies on both wheat and maize?

Mr. Peart

My right hon. Friend must realise that producers must have a fair return. We have to recognise that. I believe that there is force in the point made by the hon. Member for Norfolk, South-West (Mr. Hawkins), but I think that what I achieved in Brussels was right. Of course, world prices have created a new situation and livestock producers will benefit.

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