HC Deb 25 June 1981 vol 7 cc367-8
8. Mr. Hal Miller

asked the Minister of Agriculture, Fisheries and Food what is the current state of profitability of grain, dairy, beef and sheep farming respectively.

Mr. Buchanan-Smith

Information was given in the White Paper on the 1981 annual review of agriculture. This year's price settlement, which will add £325 million to farmers' incomes, and other measures taken by the Government will help in improving farm incomes.

Mr. Miller

Does my right hon. Friend accept that the profitability of the dairy and livestock industry is low, and that that is not in the interests of the producer or the consumer and is leading to a switch to cereal production? Will he take account of that in forthcoming negotations with his EEC colleagues?

Mr. Buchanan-Smith

I acknowledge what my hon. Friend has said, and I hope that he will acknowledge that we made it clear in the April price review negotiations that we were in danger of getting livestock and arable products out of balance. As a result, price increases in livestock are slightly better than those in other areas.

Mr. Cryer

Is not the dairy industry potentially threatened by the preliminary European Court decision on the imports of French milk into this country? Is not the doorstep distribution of milk also threatened by that decision? Does the right hon. Gentleman accept that the distribution of milk in this country is hightly effective and much appreciated by housewives? What does the right hon. Gentleman intend to do about that matter?

Mr. Buchanan-Smith

One would almost think, from what the hon. Gentleman has said, that the European Court had taken a decision. I remind him that we are contesting the Court proceedings, because we believe that we have a strong case. I agree that our doorstep delivery is important, not only for the dairy producer, but, in social terms, for British housewives and older people who rely on that excellent daily service. We shall certainly do all that we can to defend it.

Mr. John Carlisle

Is my right hon. Friend aware that the profitability of farmers concerned with these commodities and those who trade with them is seriously at risk because of the strike by civil servants? What plans has he to alleviate that hardship? Will he consider some of the schemes that have been put to him to ease the difficulties?

Mr. Buchanan-Smith

I am aware of the problems, and I hope that the dispute will be ended as soon as possible. My hon. Friend has been in touch with the Ministry, and we are doing our best to help in cases of particular hardship.