HC Deb 20 January 1983 vol 35 cc465-6
5. Mr. Freud

asked the Minister of Agriculture, Fisheries and Food whether he intends to seek to channel intervention grain stock to help the pig industry.

Mr. Buchanan-Smith

My Department and the European Commission have considered such a scheme for animal feed generally, but there are serious doubts about its cost effectiveness. Accordingly, for the present, the Commission has decided against it.

Mr. Freud

I accept the Minister's reply and that which his right hon. Friend gave to the previous question. However, does the right hon. Gentleman accept that British pig farmers have had a pretty thin time during the past few years? Will he agree to meet a deputation of pig fanners before they become a totally extinct species?

Mr. Buchanan-Smith

The hon. Gentleman must see the issue in perspective. Although pig farming has gone through a difficult time compared with other areas, there was a certain improvement in profitability last year. However, towards the end of the year things were more difficult, and that is shown in one way or another by the various costing figures. I am, as usual, happy to meet anyone who wishes to make representations. Indeed, I regularly meet members of the National Farmers Union on this issue.

Sir Peter Mills

I do not usually support the hon. Member for Isle of Ely (Mr. Freud), but I must ask my right hon. Friend to take this question very seriously. A thorough investigation might help our stock farmers and, in the long run, given the danger of exports to the Eastern bloc ceasing, cereal farmers as well.

Mr. Buchanan-Smith

I accept that, but my hon. Friend must remember that the scheme that has been put forward cannot be confined to a single area of livestock production, or it would create distortions. If such a scheme is to be effective, we must ensure that it leads to an increase in consumption and usage. We must be satisfied about that before we can take it further.

Mr. Jay

Is the Minister aware that if the Liberal party had not voted for the European Communities Act 1972, pig producers would now be able to buy their grain for about half the present price?

Mr. Buchanan-Smith

Yes, but there are many other advantages. One advantage, of which I hope our pig industry will increasingly take advantage, is that the pig farmers are members of the largest consuming market in Europe. There is tremendous scope, especially as pig prices in the United Kingdom are lower than prices in almost every other Community country, to be much more aggressive about exports to the rest of the Community.

Mr. John Townend

Does my right hon. Friend agree that, if the present position of the intensive pig industry continues for any length of time, there will inevitably be a substantial reduction in the size of the pig herd? If my right hon. Friend cannot help in this way, will he consider other methods to help the industry?

Mr. Buchanan-Smith

There is also considerable scope for the pig industry to help. It is significant that in recent weeks the price of British bacon has fallen, whereas the price of Danish bacon has remained the same. I hope that the industry will take advantage of a much bigger market. The fact that there is such a large differential means that, through the charter bacon scheme and other efforts, we should try to obtain a greater share of our market.

Mr. Buchan

This is a series of intolerable answers. At present we have about 7.5 million tonnes of cereals in intervention in the EC, and last year we spent more than £1 billion on intervention in purchasing cereals in the United Kingdom. Are we saying that we cannot devise a method of getting the cereals to the hard-pressed pig producer? What does the right hon. Gentleman wish to do with this monstrous mountain of cereals—destroy it or make it inedible?

Mr. Buchanan-Smith

The hon. Gentleman should reflect on what I said to him previously. We know that there is a surplus of cereals in the Community. Under this system, would he rather have our relatively small surplus or the 50 million tonnes shortage in countries behind the Iron Curtain?