HC Deb 17 February 1977 vol 926 cc678-80
2. Mr. Canavan

asked the Minister of Agriculture, Fisheries and Food what was the size of the potato crop for 1976 compared with the previous two years.

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

The 1976–77 potato crop is provisionally estimated at 4.8 million tonnes compared with actual figures of 6.79 million and 4.55 million tonnes for 1974–75 and 1975.76 respectively.

Mr. Canavan

As the 1976 crop was bigger than the 1975 crop and as the total supply of potatoes, taking imports and exports into account, was also greater in 1976 than in 1975, what possible justification is there for a 60 per cent. increase in the retail price of potatoes? When will the Government do something about this racket instead of standing by idly while rich farmers or merchants, or both, make a huge killing at the expense of the poor housewife?

Mr. Bishop

My hon. Friend should not overlook the steps that we have taken to increase the supply of potatoes. They have a bearing on the price. They include the lifting of the ban on the import of main crop potatoes, the ban on the export of ware potatoes, the change in riddle sizes and so forth. My right hon. Friend the Secretary of State for Prices and Consumer Protection has kept this matter of profits and prices under review, and there has been no evidence of excessive profits. In a situation where there is a shortage due to weather and other factors, there are bound to be good profits in some parts and losses in others. We have to take into account the general shortage of potatoes which has had this effect on prices.

Mr. Jopling

Does the Minister realise that one of the reasons why housewives have had to pay astronomical prices for the last two seasons has been the Government's failure to provide a guaranteed price sufficient to ensure that an adequate acreage was planted to prevent these high prices? Will he give an assurance that this time, in the ensuing review, there will be a guaranteed price sufficient to see that enough acres are planted to ensure that housewives do not again have to pay these astronomical prices?

Mr. Bishop

The hon. Gentleman should recognise that last year the increased hectarage was 19,000. As he will know, that is 46,000 acres, which was a 10 per cent. increase on the year before. He will be aware that the guaranteed price is not the only factor. He will recall that two years ago the price was £28 a ton and that it went to £40 a ton. The future guarantee is still under review. I ask the hon. Gentleman to bear in mind that there are other factors and that the weather makes a difference.

Mr. Torney

Is my hon. Friend satisfied that the system of fixing the acreage planted is correct and works in the interests not only of the farmer but of the consumer? Does he feel that there is some ground for examining the position of the Potato Marketing Board on the basis of whether consumers should be more favourably represented thereon?

Mr. Bishop

I think my hon. Friend will recognise that a delicate balance has to be struck between the amount and the acreage planted. The output, of course, depends upon weather and other factors, and these matters have to be taken into account. It does not follow that a drought one year will be followed by a drought in another year. We have to proceed against the possibility of a surplus. As for the Potato Marketing Board, my hon. Friend will realise that the potato regime is being examined. We shall bear in mind what he has had to say.

Mr. Shepherd

Will the hon. Gentleman bear in mind that the increased costs facing the farmer, which to a large extent are a result of the Government's policies, must be recognised when setting the fall-back price this year? Will he give an undertaking that he will take this fully into account?

Mr. Bishop

I can assure the hon. Gentleman that all these factors are being taken into account in the present review.