HC Deb 10 December 1981 vol 14 cc974-5
7. Mr. Knox

asked the Minister of Agriculture, Fisheries and Food what is the level of intervention stocks of beef in the United Kingdom.

Mr. Buchanan-Smith

It is 9,923 tonnes.

Mr. Knox

Is my right hon. Friend satisfied that beef producers are receiving a sufficient return to ensure that there will be adequate future supplies?

Mr. Buchanan-Smith

It is significant that market prices for cattle have risen considerably this autumn, and producers are enjoying a 25 to 30 per cent. higher return than a year ago. In addition, the Government have increased the hill livestock compensatory amounts for hill cattle. We are seeing a halt in the decline of our breeding herds. Those are encouraging signs that I hope will continue.

Mr. Geraint Howells

Is the Minister aware that there will be an acute shortage of home-produced beef in the new year? What are his plans to help consumers?

Mr. Buchanan-Smith

With respect, the hon. Gentleman is wrong. Our estimates are that beef supplies in the early part of next year will be closely in line with supplies in the early part of this year. I know that there have been certain reports about the matter. I have examined them, and do not believe that they are altogether soundly based.

Mr. Farr

Is my right hon. Friend sure that the reason why beef prices have risen is not scarcity? Is that not worrying? What are we doing to ensure the long-term future for British beef producers?

Mr. Buchanan-Smith

There have been increases in beef prices in the recent price reviews. At each review that we have carried out we have increased the returns for hill farm producers through the hill livestock compensatory amounts. There has also been the introduction of the EEC suckler cow premium. If my hon. Friend views the matter in that light, he will realise that a considerable amount has been done to help beef producers, which accounts for the halt in the decline in our breeding herd.

Mr. Strang

As the market price has become more firm, and as the EEC is reconsidering the common agricultural policy, is it not time to end intervention buying—something that is anathema to the British housewife, especially in relation to beef? Is it not also time to replace the variable premium with a full-blooded deficiency payment?

Mr. Buchanan-Smith

The variable premium helps the producer. British producers have the double protection of the variable premium and intervention. I do not think that they would necessarily agree with the hon. Gentleman's remarks.

Mr. Jay

Are there any beef supplies in private storage, and if so, how much?

Mr. Buchanan-Smith

Yes, there is some beef in private storage. There is a question on the Order Paper about that matter and it is for answer later.