Agriculture (Price Review)

HC Deb 28 February 1977 vol 927 cc13-5

12. Mr. Nicholas Edwards

asked the Secretary of State for Wales what representations he has received from the agricultural unions about the price structure for the coming year; and whether he will make a statement.

Mr. John Morris

I have met representatives of the farmers' organisations in Wales in the context of this year's annual review. The conditions and prospects of the agricultural industry are set out in the White Paper "Annual Review of Agriculture"—Cmnd 6703—presented to Parliament on 12th January 1977.

Mr. Edwards

Is the right hon. and learned Gentleman aware that there is a need to remove present uncertainties as quickly as possible? Is he aware that farmers will be bitterly disappointed if there is a whittling down of what is proposed by the Commission? The present discrepancy between Irish and United Kingdom prices must be reduced. If farmers are to produce the food we need, there must be a substantial recoupment of the additional £900 million in costs that they have suffered.

Mr. Morris

The hon. Gentleman will be aware that the Commission has pre- sented certain proposals. The first substantive discussions will take place in Brussels on 14th and 15th March. I hope to be there myself, as I was last year. There are many complex factors arising from these proposals and we must have regard to producers as well as to consumers.

Mr. Geraint Howells

Is the right hon. and learned Gentleman aware that many of the fears in agriculture in Wales are about the future of the marketing boards and the support system, which has operated so well for the past 25 to 40 years? Is he in a position to give an assurance to the industry in Wales that the Milk Marketing Board and other boards with statutory powers are here to stay?

Mr. Morris

I have said repeatedly that the marketing boards—in particular, the Milk Marketing Board—have successfully carried out a tremendously important job for the good order of agriculture, especially for the milk industry. We shall seek to do our utmost to ensure that we lose none of the great values and benefits of the years of work of that admirable board.

Mr. D. E. Thomas

When the right hon. and learned Gentleman next meets the Community Agriculture Ministers, will he discuss with them the need for a coherent European sheepmeat policy? Does he accept that the way to achieve that would be to ensure that the markets are open, especially the French market, to producers from Wales? Will he help them to retain within the United Kingdom the present system of guaranteed prices for lamb?

Mr. Morris

The hon. Gentleman is asking for a number of different things, some of them contradictory. Certainly I am aware of the problem that arises from the attitude of the French from time to time. However, the sheep industry would not affect the green pound, to which the hon. Member for Pembroke (Mr. Edwards) referred.

Mr. Cledwyn Hughes

Leaving exaggeration aside, is my right hon. and learned Friend aware that there is acute concern in most parts of Wales and in parts of England about the sharply declining price of beef? Is he aware, in particular, that farmers in my constituency, which is a livestock rearing area, are worried about the future? Will he take that into account in his consultations with my right hon. Friend the Minister of Agriculture, Fisheries and Food leading to the review?

Mr. Morris

I am sure that with his knowledge my right hon. Friend would not want to paint too gloomy a picture. I know that that is not his intention. As he knows, the market is traditionally sluggish after Christmas. There was an influx of Irish animals, arising partly from the long warning that was given in respect of Irish devaluation. Substantial numbers came on to the market in a very short time. There has not been the sort of market on the Continent that might have been expected. These matters are to be taken into account. My right hon. Friend will also accept that there have been high and good prices for stores throughout the winter. Some of us were rather surprised by the way in which those concerned obtained their profit last autumn.