Mr. Andy Stewartasked the Minister of Agriculture, Fisheries and Food what will be the effect on farm incomes of the changes in arrangements for intervention buying of beef and support of production.
§ Mr. GummerThe agreement reached in December reduces the price levels at which intervention buying is triggered and will set buying prices at levels related to market prices. But we in the United Kingdom have relied more on the operation of the variable premium to secure our producers' returns. This is being extended for two years and payments have already been increased by 5 per cent. as a result of the devaluation of the green pound.
Mr. StewartMy right hon. Friend has given some figures which will mean that farmers will receive £35 a head less. Farmers have always lived in the real world, but they would like to know why Irish farmers have access to our deficiency payments, thereby undermining prices here?
§ Mr. GummerThe situation is difficult, but it appears that the price of Irish beef will decrease by £70 a head, compared with the figure given by my hon. Friend. German farmers will receive £119 a head less, Italian farmers about £115 a head less and French farmers between £85 and £45 a head less, depending on whether they are bulls or steers. In this difficult situation the United Kingdom has come out very much better than other countries in the European Community.
§ Mr. JohnHas the Minister calculated by how much it will accelerate self-sufficiency in the sheepmeat regime if beef producers switch to sheep production?
§ Mr. GummerVarious things cause people to move into sheep farming, so the direct effect cannot be shown. The hon. Gentleman is right. So long as there are major surpluses in some areas and not in others there will be a tendency to create surpluses where they do not presently exist.
§ Mr. Colin ShepherdWill my right hon. Friend acknowledge that the House is grateful for the devaluation of the green pound which was secured in the December negotiations in the Community? Does he recognise the important part played in the rural economy by the hill livestock farmer and the hill suckler cow herd? Will he monitor carefully the consequences on farm incomes in this particularly valuable sector of the rural economy?
§ Mr. GummerWe shall certainly do that carefully. I hope that my hon. Friend will remind the farming industry that the United Kingdom Government achieved a better deal for beef farmers than did any other Government in the European Community.