§ 4.7 p.m.
§ THE EARL OF LISTOWELMy Lords, I beg to ask Her Majesty's Government a Question of which I have given Private Notice about the outcome of the Annual Review of the agricultural industry and the fixing of farm prices.
§ THE POSTMASTER GENERAL (EARL DE LA WARR)My Lords, the Statutory Annual Review of the economic condition and prospects of the agricultural industry has been concluded this week. The Government has made its determinations on the guarantees to the industry in the light of the Review. These are set out in a White Paper which is now available in the Printed Paper Office. For the first time since these Reviews started, the net trend of costs is this year a downward one. Increases have been more than offset by decreases, mainly in feedingstuffs costs. The total farm net income for 1953–54 is forecast at £321 million as compared with the final figure of £324½ million for the previous year. Net output is estimated at 56 per cent. above pre-war, as compared with 52 per cent. a year ago.
Certain changes have been made in the price guarantees. Briefly, the effect is to leave the guarantees for fat cattle, fat sheep and lambs, wool and sugar beet at their present level; to make reductions in the guaranteed prices for milk and pigs, and a small reduction in the guaranteed prices for cereals of the 1955 harvest; to leave the support price for hen eggs at its present level, but linked to feedingstuffs prices; and for potatoes to substitute a support price for a fixed price for the 1955 harvest. Production policy has been redefined. Expansion of net output to 60 per cent. above pre-war remains a major objective. It must also be a major objective to raise quality and reduce costs still 510 further and to improve management and marketing. The Government is satisfied that, while due regard is being paid to the calls of the Exchequer, the guarantees now determined assure the industry a fair level of income in accordance with the terms of the Agriculture Act, 1947.
§ VISCOUNT ALEXANDER OF HILLSBOROUGHMy Lords, we are much obliged to the noble Earl for the statement which he has made, which is obviously of great importance. There has not been a Review quite of this order since the Annual Reviews started and I am quite certain, whatever agreement there may have been (if there has been one) with the headquarters of the farmers, there will be a good deal of dismay in the whole of the rural areas of this country, especially in the predominantly milk-producing areas and some parts of the fat stock areas. The announcement about pigs, on top of the reductions which have already taken place and which are based entirely upon a decrease in the cost of feedingstuffs, without apparent regard to the increase in wages and similar things, will be bound to have its effect upon the actual amount of productive effort put in to reach the Government's target. From my point of view—I do not know whether my noble friend, Lord Listowel, would like to ask a further question—it seems to be the beginning of a setback such as we got with the repeal of the Corn Production Acts in 1921, except that the principle of guarantees happens to remain. I think, therefore, that we must ask for an early debate on this matter. We had better do it through the usual channels. I must say that we are very concerned about it.