HC Deb 17 July 1978 vol 954 cc8-12
7. Mr. Nicholas Winterton

asked the Secretary of State for Prices and Consumer Protection whether he will give the increase in food prices since February 1974 to the latest available date.

21. Mr. Durant

asked the Secretary of State for Prices and Consumer Protection whether he will give the increase in food prices since February 1974 to the latest available date.

22. Mr. Knox

asked the Secretary of State for Prices and Consumer Protection what has been the increase in food prices since February 1974.

Mr. Maclennan

The food price index in mid-June had increased by 1049 per cent. since February 1974—

Hon. Members

Disgraceful.

Mr. Speaker

Order. Hon. Members do not know what is coming.

Mr. Maclennan

However, in the 12 months to June 1978, food prices rose by only 6.7 per cent., the lowest annual rate other than in the current year, since May 1972.

Mr. Winterton

Does not the Minister think that that is a disgraceful admission of failure by the Government? Does not he further consider that the Secretary of State for Prices and Consumer Protection, with all his arrogance, should now resign? Where in their 1974 manifesto did the Government promise to raise food prices by more than 100 per cent. in four years? Is the hon. Gentleman aware that the Secretary of State is now the housewives' public enemy no. 1 and the biggest basket of them all?

Mr. Maclennan

After that rhetoric, which seems more appropriate to an election than to the House of Commons, I should point out that the facts should be regarded by the House as extremely encouraging because, for the ninth consecutive month, the annual rate of food price increases has been below the general rate of inflation. The hon. Gentleman should also note with satisfaction that the rate of inflation in food prices is one-third of the rate at this time last year.

Several Hon. Members

rose—

Mr. Speaker

Order. Before I call anyone else, did the hon. Gentleman, in his closing words, use an offensive expression about the Minister?

Mr. Winterton

I said that the Secretary of State for Prices and Consumer Affairs was the biggest basket of them all.

Mr. Speaker

I advise the hon. Gentleman to remember where he is.

Mr. Durant

Is the Minister aware that in a Written Answer which he gave on 23rd June he stated that the only part of the price increase that could be blamed on the Common Market was 1.7 per cent.? So let us have no more talk from below the Gangway opposite that it is the Common Market which has caused this increase; it is the present Government and their devaluation of our sterling.

Mr. Maclennan

The hon. Member has overlooked the fact that earlier this year the Opposition proposed the devaluation of the green pound, which would have resulted in a substantial increase, which the Government resisted. Due to the action of my right hon. Friends; by phasing that devaluation, we have succeeded in saving the British housewife £50 million.

Mr. Knox

Is not the Minister ashamed of this increase in food prices?

Mr. Maclennan

I think that it is highly regrettable that in the past five years food prices have increased substantially throughout the world. It is noteworthy that the rate of increase in this country is now substantially below that in a number of other countries in the developed world, including the United States of America and France.

Mrs. Dunwoody

Will my hon. Friend try to explain to the hon. Member for Macclesfield (Mr. Winterton)—although, of course, he may find it slightly difficult as the hon. Member is not too quick on the uptake—that there is direct correlation between the price of food in this country and our entry into the Common Market? Does my hon. Friend agree, whether the hon. Member likes it or not, that it is the tariffs imposed at the point of entry which affect prices in the shops?

Mr. Maclennan

It is a fact that at the beginning of this year we completed our movement throughout four transition phases. This had the effect of raising food prices in this country. These arrangements were entered into by the Opposition.

Mr. Marten

On the question of bringing food prices down, which will help to reduce inflation, why do the Government go on paying the 50 per cent. levy on hard wheat imported from Canada when the Common Market does not produce any? That adds about 4p or 5p to the price of a standard loaf. Why do not the Government do something about it?

Mr. Maclennan

The hon. Gentleman should note, in respect of the common prices and the levy arrangements, that the Government have achieved substantial successes and, this year, have succeeded in bringing down the rate of common price increase to 2½ per cent.

Mr. Marten

Answer the question.

Mr. Maclennan

The hon. Gentleman says "Answer the question." I am answering his question in my own way. The hon. Gentleman chooses to single out a particular item from a package. He must look at the whole picture and realise how successful the Government have been in holding down the level of common price.

Mr. Heifer

Does my hon. Friend agree that one of the problems is that hon. Members—unfortunately, including some Ministers—try to defend an impossible position over the Common Market? Does he further agree that, if we are absolutely honest about it, we must admit that the public enemy No. 1 is the Common Market, and that the 104 per cent. increase is due to our entry to the Common Market and nothing else? That needs to be said time after time after time.

Mr. Maclennan

The deficiencies of the common agricultural policy have been reiterated by the Government on a number of occasions, and most recently by the Prime Minister at the meeting in Bremen where he succeeded in obtaining from his colleagues, at the Heads of Government meeting, the most important assurance that the common agricultural policy would be reviewed and the Commission would be invited to produce proposals for the next Council meeting. The Government have never been in any doubt about the importance of this aspect, in resource terms particularly. My hon. Friend is wrong to attribute the full price increases which have occurred over the past few years—throughout the world and not simply in the Community countries—to the common agricultural policy.

Mrs. Sally Oppenheim

Is the Under-Secretary aware that the House and the country will have noted that the Secretary of State is too yellow to answer this most important Question?

Mr. Speaker

Order. I hope that the hon. Lady is not making a charge of cowardice, because that is unparliamentary.

Mrs. Oppenheim

If you wish me to qualify my remarks, Mr. Speaker, I replace the word "yellow" with the word "timid". Is the Under-Secretary aware that if the most that the Prime Minister and the Secretary of State can offer the country—after more than doubling food prices after four and a half years, after reducing the purchasing power of the pound to 51p, after raising prices by over 93 per cent., after nearly four years of double figure inflation—is a mere further six months of single figure inflation before they return to double figure inflation, who do they expect to cheer that performance? It is an insult—

Mr. Speaker

Order. I think that that is enough for the time being.

Mr. Maclennan

I must express regret that, due to the barracking by the hon. Lady's hon. Friends, I heard no question from her at all after the first phrase. I have always answered Questions on food prices: there has been no change in practice. The news which I gave in my initial reply, that food prices rose by only 6.7 per cent. year on year—the lowest annual rate since May 1972—shows how the Government are getting on top of the problem of food price increases.

Mr. Adley

On a point of order, Mr. Speaker. Would you advise me whether the word "funk" is parliamentary?

Mr. Speaker

Ask me again later.