HC Deb 17 July 1980 vol 988 cc1730-1
1. Mr. Cryer

asked the Minister of Agriculture, Fisheries and Food, by how much agricultural prices have risen since May 1979.

The Minister of Agriculture, Fisheries and Food (Mr. Peter Walker)

The latest available information shows that the index of producer prices in May was 4.1 per cent. above the level a year earlier.

Mr. Cryer

Is it not true that the Minister, after repeatedly denying that he would do so, has devalued the green pound on three occasions? As a result of the summit agreement he has now abandoned the right to control prices for at least the next two years, and, therefore, by increasing prices through the common agricultural policy he has abandoned the British housewife. Does not he accept that in a balance between the interests of the consumer and the farmer he is likely to come down on the side of the farmer, because he is one?

Mr. Walker

Obviously the hon. Gentleman did not hear my reply. I said that in one year, prices to the producer had risen by 4.1 per cent. If the hon. Gentleman is suggesting that that is too much in the past year, he had better tell the National Union of Agricultural and Allied Workers that its claim for a 20 per cent. increase was unjustified.

Mr. Colin Shepherd

Does not my right hon. Friend agree that the figures that he has given indicate that a pat on the back is deserved by processors, producers and retailers? At the same time, should not recognition be given to the fact that margins are being badly squeezed, and that that might not be healthy in the long run?

Mr. Walker

The reply shows clearly that the food industry, particularly the producers, has been incredibly successful in a year of big inflationary costs and large, increased, input costs in keeping down inflation. It is a pity that Labour Members cannot pay tribute to them.

Mr. Mason

Is the right hon. Gentleman aware that since last June the price of a pint of milk has risen from 13½p to 16½p? If he gives way to the present pressures for an increase of another 1½p, is he aware that milk will have risen in price by 33 per cent. in about 13 or 14 months? Is the right hon. Gentleman further aware that the high price of milk is causing consumption to fall? What is his attitude towards the demand for an increase of another 1½p?

Mr. Walker

I shall consider the application that has been made, but it was made by the Dairy Trade Federation, among others, with the support of the cooperative movement.