HC Deb 25 March 1976 vol 908 cc603-4
1. Mr. Raphael Tuck

asked the Minister of Agriculture, Fisheries and Food what is the estimated increase in price for the coming year of butter, milk and cheese.

The Minister of State for Agriculture, Fisheries and Food (Mr. S. Bishop)

As far as the price of milk is concerned, I refer my hon. Friend to the statement which my right hon. Friend made on 8th March on the determinations following the annual review. It is not possible to estimate the extent of the likely increases in the prices of butter and cheese, which will depend upon a number of factors, particularly the extent to which market conditions will allow price and cost increases to be passed on to the consumer, and the level of subsidies.

Mr. Tuck

Bearing in mind the fact that, even before the latest staggering increases, the EEC price of butter was more than three times the world price, can my hon. Friend say what proportion of these increases will be due to our membership of the Common Market?

Mr. Bishop

It is difficult to give my hon. Friend an exact reply. If changes in the EEC institutional prices agreed at Brussels are fully reflected at the retail level, the price of butter could rise by 8p or 9p per pound and cheese by 5p or 6p per pound by the end of the year. The bulk of the increases results not from the agreement on prices for 1976–77, but from the need to meet our obligation under the Treaty of Accession to align United Kingdom prices with Community prices by the beginning of 1978. That Treaty was signed by the Conservative Party.

Mr. Geraint Howells

Does the hon. Gentleman expect the price review award to dairy farmers this year to increase dairy production to his satisfaction?

Mr. Bishop

The hon. Gentleman has made an important point. When comparing EEC and non-EEC prices one must bear in mind the important factor of food security.

Mr. Pym

Does the hon. Gentleman agree with Commissioner Lardinois that Great Britain's membership of the Common Market had resulted in food in this country being cheaper than it would otherwise have been?

Mr. Bishop

Yes, and I also agreed with Commissioner Lardinois when he said that my right hon. Friend had got a good package from the recent proposals.

Mr. Crawshaw

Does my hon. Friend remember that it was only a few months ago that margarine manufacturers were complaining that, because of the cheapness of butter, they were unable to sell their product?

Mr. Bishop

That is a matter of consumer choice.