HC Deb 19 February 1981 vol 999 cc436-7
3. Mr. Iain Mills

asked the Minister of Agriculture, Fisheries and Food what he expects will be the change in the level of beef production in the coming marketing year.

Mr. Buchanan-Smith

Under present trends I expect beef production to be somewhat lower in the coming year.

Mr. Mills

I am sure that my hon. Friend will join me in being worried about the fact that this is the sixth successive year when there has been a drop in beef production. Will he consider urgently those of my West Midland and Warwickshire farmers who consider that a realistic settlement for farm prices, the need to maintain the green pound and a further reduction in interest rates should form part of his negotiations in the near future?

Mr. Buchanan-Smith

I acknowledge what my hon. Friend says. The White Paper indiccated that agricultural incomes declined during the past year. The figures for the beef sector gave us especial cause for concern. I give my hon. Friend the assurance that in the price review negotiations we shall need to examine carefully what is happening in that sector. That applies to livestock generally, but particularly to beef. We acknowledge that matters are difficult.

Mr. Wm. Ross

Is the Minister aware that in my part of the United Kingdom beef prices are consistently a long way below the level of prices that persists elsewhere? What changes does he propoes to make in the beef marketing system so that a more unified pricing arrangement will be arrived at throughout the United Kingdom.

Mr. Buchanan-Smith

Beef prices must be negotiated in the coming price review with our European colleagues. I acknowledge that even greater difficulties are faced by Northern Ireland producers. However, through intervention, the beef premium scheme, the suckler cow subsidy and hill livestock compensatory amounts, large sums are being paid into the beef industry. I acknowledge that there are problems, but we shall be dealing with them.

Sir Timothy Kitson

Is my hon. Friend aware that large numbers of Irish store cattle that would normally find their way on to the British market are now being exported direct to Libya and attracting large headage payments? Will he examine the difficulty that this trade is causing to beef farmers in the North of England, with a view to ascertaining whether anything can be done to put matters right?

Mr. Buchanan-Smith

Yes. I willingly give my hon. Friend that assurance.

Mr. Colin Shepherd

Will my hon. Friend confirm that the variable premium scheme will continue to be the main price support mechanism for the coming year?

Mr. Buchanan-Smith

We believe that it should be. We consider it to be a good investment in terms of funds. It is good for the consumer as well as for the producer.