§ 8. Mr. James Clappison (Hertsmere)If he will make a statement on the price of wheat in (a) 1980, (b) 1990 and (c) currently. [R][127109]
§ The Minister of State, Ministry of Agriculture, Fisheries and Food (Ms Joyce Quin)The average price of UK wheat in 1980 was £105 per tonne, rising to £120 per tonne in 1990. It is currently about £80 per tonne. However, in real terms, adjusting for inflation, the price of wheat has declined overall on a constant basis since 1980. Low prices for grain currently apply throughout the world, and are largely the result of oversupply following a run of good harvests and a downturn in consumption caused by the recent financial turbulence in Asia.
§ Mr. ClappisonDoes the Minister of State agree that those figures are desperate, and are reflected in farm incomes? Is she aware that the Ministry's statistics show that the income of cereal farmers has gone down by 72 per cent. since the Government took office, and that many believe that farming today is in its worst state since the second world war—probably worse than the 1930s? Ministers may be sympathetic, but if that continues there will soon not be much left of British farming. Against that background, should Ministers not do all they can to help British agriculture? Could not they make a good start by looking at the workings of the Intervention Board, because reform of that would help to give British farmers a better deal?
§ Ms QuinThe hon. Gentleman is wrong to suggest that we have given only sympathy to British agriculture. The results of the farming summit on 30 March and the previous packages of support that the Government announced show that we have given practical and financial assistance to agriculture, as well as sympathy. Although it is true that wheat prices are lower than they were years ago, they are now much closer to world prices. In our new direction for agriculture, we want to reduce the artificial difference between European and world prices and to support agriculture differently. The amount of public money that goes into the cereals is considerable; as I announced in reply to an earlier question, it is about £1 billion a year.
§ Mr. Peter L. Pike (Burnley)In view of the reductions in subsidies as a result of the World Trade Organisation arrangements over the next two to three years, is my right hon. Friend satisfied that we are fully prepared for the changes that have to take place to ensure that the industry can survive in this country?
§ s QuinThe Government are fully preparing for the pressures that will affect European agriculture in the next few years. My hon. Friend is right to mention the pressures caused by the WTO, but there are also budgetary pressures in the EU—and, of course, the important matter of enlarging the EU to take in new member countries.
§ Miss Anne McIntosh (Vale of York)Having regard to enlargement and the next round of WTO negotiations, what message can the Minister of State give wheat growers to show that they will have a future in the United Kingdom?
§ Ms QuinWe believe that our growers, and indeed our agriculture generally, are in a position to be good competitive performers in the EU. I believe that if we 1035 manage to move further away from the production-related subsidies of the past and ensure that those decisions are applied uniformly across Europe, British agriculture will be in a good position to compete.