Pigmeat

HC Deb 09 December 1976 vol 922 cc602-5

4. Mr. Hicks

asked the Minister of Agriculture, Fisheries and Food what measures he proposes to introduce to alleviate the financial difficulties facing producers of pigmeat.

20. Mr. Boscawen

asked the Minister of Agriculture, Fisheries and Food if he is satisfied with the reduction he achieved in November in the MCA's payable by the Commission to the exporters of pigmeat to the United Kingdom.

29. Mr. Watkinson

asked the Minister of Agriculture, Fisheries and Food if he remains satisfied with the returns presently available to pig farmers.

Mr. Bishop

I recognise the difficulties facing the pigmeat sector and share the concern felt by both pig producers and pigmeat processors about the effect of monetary compensatory amounts on their competitive position. My right hon. Friend has made clear his belief that the interests of this sector will best be served by changing the way in which the monetary compensatory amounts for pigmeat are calculated, and he has put proposals to the Council of Ministers. The recently negotiated reduction of about 8 per cent. in these amounts is a step in the right direction, but it is not enough. We shall continue to press for further changes.

Mr. Hicks

Is the Minister aware of the urgency of the situation both in respect of the production of pigmeat and in the pigmeat processing industries? When can we expect action?

Mr. Bishop

The House should first be aware of the advantage of the 8 per cent. that has already been negotiated, which is worth £24 a ton on bacon this week. The MCA applied to bacon is now about £47 a ton below the peak level at the beginning of November. Despite this, we are still not satisfied, and my right hon. Friend is pressing for further urgent action in Brussels.

Mr. Watkinson

Is my hon. Friend aware that pig producers in my constituency are in a desperate situation at the present time, in that their revenue only just covers their feeding costs, let alone any other costs? If my right hon. Friend the Minister of Agriculture is unable to get any advantage out of the Common Market, will he bear in mind the need for direct assistance, if necessary, to the pig industry?

Mr. Bishop

It is very important that we should not be discouraged and should remember the advances already made. The fact that there has already been a change in the MCA rate is a recognition that there is no necessary link between that and the green pound, and that is a step in the right direction. If there were changes in the green pound it would worsen the feed cost situation, which is one of the factors in the problem. We are certainly taking urgent action to improve the position.

Mr. Boscawen

I am still not convinced that the Minister is really aware of the seriousness of the situation. Is it not a fact that pig production is in relatively few hands, unlike other branches of the agriculture industry, and that it is therefore most important that we get quick action on this, otherwise we shall find many pig producers going out of business?

Mr. Bishop

I am sure that my right hon. Friend is well aware of the points that the hon. Gentleman has made.

Mr. Hardy

Will my hon. Friend remind the House that the situation today, although severe, is nowhere near as serious as that which faced the present Administration when it took office in February 1974? Does he agree that, while the Government then took helpful action, helpful action is certainly required today?

Mr. Bishop

I appreciate my hon. Friend's comments. The fact is that United Kingdom bacon production is now about 46 per cent. of our total needs, as compared with 42 per cent. last year. But that is no reason for complacency, and we shall certainly be pressing for urgent action. We seek to ensure that the United Kingdom pigmeat processing industry is allowed to supply its products under fair competition, and this is what we are seeking in Brussels.

Mr. Peyton

Is the Minister aware that his answer betrayed absolutely no sense of urgency? Nothing that he said reflected the concern felt in the country. Is he aware that we seem now to be enjoying—if that is the word—a uniquely chilling combination? First, we are in receipt of massive charity from the Community. Secondly, we are increasing imports, for which we do not want to have to pay. Thirdly, we are ruining our own producers and processors. Is it not a fact that the Danish producer selling here gets between £15 and £20 more for a bacon pig than a home producer gets?

Mr. Bishop

I do not think that the right hon. Gentleman provides any help for my right hon. Friend when he talks about the massive charity that we are getting from Brussels. My right hon. Friend has made it very clear that in many ways we are having to pay higher costs for food—[Interruption]. The fact is that the Council, by its acceptance of the 8 per cent. change, has accepted in principle the fact that changes can be made without a change in the green pound. We are pressing for further improvements to be made as soon as possible.

Mr. Hicks

In view of the very unsatisfactory nature of the Minister's reply, I beg to give notice that I shall seek an early opportunity to raise the matter on the Adjournment.