HL Deb 02 August 1917 vol 26 cc158-62
THE EARL OF MAYO

My Lords, I rise to call attention to the 1917 Crop (Restriction) Order, dated July 13, 1917. This is a very drastic Order, and is to the effect that— No person shall without a permit issued under the authority of the Food Controller—either on his own behalf or on behalf of any other person (a) buy, sell, or deal in; or (b) offer, or invite an offer, or propose to buy or sell or deal in; or (c) enter into negotiations for the sale or purchase of or other dealing in any wheat, barley, oats, or rye of the 1917 crop grown in the United Kingdom, or any potatoes…. The fact of the matter is that the normal buying and selling of agricultural produce has been stopped without a word of explanation. It is entirely prohibited, if I read this Order aright. It must be remembered that we had to plough up a good deal of our best grass land in Ireland. We ploughed up 700,000 acres of grass land. You cannot grow oats on bad land; therefore you have to plough up the best land in order to grow this kind of crop.

I ask, Is this an intelligent way of issuing such a revolutionary edict? The Irish Department of Agriculture know nothing of it, and cannot explain the Order. I do not think the Irish farmers have been consulted in this matter, and you must remember that we are likely to have, with luck, an enormous crop of oats. There is now a difficulty of dealing with these oats. What is generally done is this. You make a stack and get the threshing machines to work as soon as possible and then put your oats on the market. With this Order in existence what is to happen? You have to make very large stacks of oats and it is difficult to get men to thatch stacks now. In the grass country where I come from, that large grass plain which extends right down to Meath, those men do not exist. By stopping the sale of oats the Government have put the farmer into a very difficult position. He has done his best in the circumstances, and answered the call of the Government well. I do not think this is a proper way in which to treat them.

Then I must draw the noble Lord's attention to the fact that we are required in Ireland to do 5 per cent. more tillage in 1918. That is a good deal. We have done an additional 10 per cent. already. I want to know whether the State is going in for a vast deal in cereals? Is the noble Lord going to act like Joseph acted in Egypt and buy up all the corn and keep it? We are not likely to find the money in our sacks. We have to make use of middlemen to deal with the corn. I do not see how the State is going to do it. Is there going to be a gigantic monopoly in cereals and potatoes undertaken by the State, and are we to sell to the State only and to buy from the State only? I should like to have some explanation from the noble Lord as to why this Order has been promulgated, because it has come like a bombshell to the farmers in Ireland.

LORD RHONDDA

My Lords, I did not know the precise nature of the information which the noble Earl desired. His Notice on the Paper reads—

To ask His Majesty's Government with regard to the 1917 Crop (Restriction) Order, dated 13th July, 1917.

That is all it says. I now know more about it. The noble Earl has asked me whether I am going to act like Joseph. No, I am not. The First Food Controller of whom we have any record had a very great advantage over me. He knew fourteen years ahead what was going to happen. I am very glad if I am told fourteen months or fourteen weeks ahead.

The object of the 1917 Crop (Restriction) Order was to prevent speculative dealings in this year's crop of grain and potatoes which might interfere with the working of any scheme necessary to control both the price and distribution of the crops. As I informed your Lordships last week, a scheme was then being prepared. I am now able to give you the principal provisions, and I hope that it will be possible to issue an Order giving full details in legal form during the next few days. The sole object of the scheme of control is to direct and facilitate the distribution of the crops through the ordinary trade channels, and at the same time ensure that anything in the nature of speculation or unnecessary inter-trading is made impossible. The scheme I am about to outline to you and the prices have already been agreed and approved by the Boards of Agriculture of England, Scotland, and Ireland. I was able to indicate last week that transactions in grain for seed purposes will be permitted without any restrictions whatever either as to quantity or price.

It is intended to reserve all wheat, rye, and barley for use as human food or for seed. Oats not required for milling will be available for animal food. Maximum prices will be fixed for barley, oats, wheat, and rye, and these maximum prices will be applicable only to sound grain of good quality. The maximum price for wheat and rye will range from 70s. per quarter at the opening of the season to 74s. per quarter after June 1 next year—an average of 72s. per quarter of 480 lbs. throughout the season. This price is equivalent to 75s. 6d. per quarter of 504 lbs., the recognised trade weight. In the same way the price of oats will rise as the season advances ranging from 41s. to 45s. or an average of 43s. per quarter of 312 lbs. I hope that this will be an inducement to the farmers in Ireland to plough up an even increased quantity over that which they have ploughed up this year. An average of 43s. per quarter throughout the year should prove an attractive price. It is more than double what they were getting before the war.

THE EARL OF MAYO

That is for the very best quality only.

LORD RHONDDA

No. But the oats must be of good average sound quality, of course. This price is equivalent to 46s. 3d. per quarter of 336 lbs., the trade weight. Oat millers will be permitted to pay an additional 3s. per quarter of 336 lbs. over the current maximum price for oats, which will enable them to secure the finest samples. In the case of barley, the maximum price throughout the season will be 56s. per quarter of 400 lbs., equivalent to 62s. 9d. per quarter of 448 lbs. the trade weight. Maltsters and other licensed buyers, but not millers, will be permitted to pay up to 68s. per quarter of 448 lbs. for such barley (if any) as they may be licensed to purchase. In order to prevent dealing in tailings, screenings, and damaged grain unfit for human food at prices above the maximum fixed for sound grain, and to remove any temptation to permit grain to become damaged, the maximum price at which wheat, rye, and barley unfit for human food may be sold will be 7s. per quarter below the current maximum price for sound grain.

The price at which imported grain will be sold to millers will be adjusted from time to time in parity with the current maximum prices for sound home-grown grain. This arrangement will ensure a ready market to the farmer at current maximum prices for good and sound grain, but will not enable him to make maximum prices for samples that have been badly harvested or are of inferior quality or out of condition. Flour millers will be encouraged as far as possible to buy wheat, rye, and barley direct from farmers, but where to ensure equitable distribution the services of a merchant are necessary the extra cost cannot in any case exceed 1s. per quarter, and so long as supplies are plentiful competition will, I am confident, reduce this margin to 6d. per quarter.

Purchasers other than millers may, when buying through a recognised intermediary, pay a price not exceeding 2s. per quarter above the producers' maximum price, though in this case also competition will reduce this margin so long as supplies are plentiful. Such a margin, however, is necessary in order to secure a supply of oats to industrial centres where in the ordinary course of business oats would pass through the hands of both a country dealer and a wholesale merchant. In transactions not exceeding 15 sacks a further margin will be allowed, and in transactions of less than one sack there will be no restriction as to price. It will not be legal to sell grain other than by weight, and the prices are fixed on the basis of payment net cash within seven days from completion of delivery. The producer will find his own, or be responsible for the hire of sacks until the grain is delivered, and delivery will be made by the producer, either to the nearest railway station, or at his option to the purchaser's premises. All freight, haulage, porterage, and cartage from the point at which delivery is made by the producer will be paid by the buyer, as will also the cost of sack hire (if any) from the time of delivery. The price of millers' offals will be fixed in parity with the price of English corn. A scheme to deal with the main crop of potatoes is in course of preparation, and I hope will be published in the course of a few days.

THE EARL OF MAYO

Then I understand that this Order was issued only to afford the Department time in which to fix these prices and to get into line with regard to the matter?

LORD RHONDDA

Certainly, and in the meantime to prevent speculative dealing, which we thought would be very objectionable.

THE EARL OF MAYO

With regard to the other matter I mentioned, is it illegal to sell standing oats?

LORD RHONDDA

It is illegal to deal in any way except with a licensed agent.

House adjourned during pleasure.

House resumed.