§ 3.52 p.m.
EARL. ST.ALDWYNMy Lords, with your Lordships' permission, I will interrupt this debate to answer the Private Notice Question of the noble Earl, Lord Listowel. The statutory Annual Review of the economic conditions and prospects of t he agricultural industry in the United Kingdom has been concluded. The Government have made their 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. The general production policy of the Government is unchanged. The main objectives of policy continue to be to foster a high level of net output by encouraging the production of beef, mutton and lamb and the production and use of home-grown feedingstuffs. It is necessary to avoid stimulating further the production of pigs.
The condition of the industry has been adversely affected this year by the particularly bad weather. There has also been a substantial net increase in costs. The actual farm net income for 1954–55 is forecast at £280 million, as compared with the final figure of £320½ million for the previous year, though on a normal weather basis the forecasts are £312 million for this year and £306½ million for last year. Net output is estimated at 53 per cent. above pre-war, as compared with 55 per cent. a year ago. I am sure the House will join with me in paying a tribute to the determination, hard work and skill of the industry, but for which a greater decline could have been expected.
These circumstances, with the other factors to be taken into account, have been fully considered by the Government in determining the changes to be made in the price guarantees and in the production grants. The net effect of the determinations is to increase the total value of the guarantees in a full year by £28 million. The Government regard this increase as necessary to give the industry the stability and resources that it needs in present circumstances, if it is to play its full part in meeting the requirements of the national economy. It has been decided to increase the price guarantees for fat cattle, fat sheep, and lambs, milk and eggs for 1955–56, and for coarse grains, potatoes and sugar 919 beet of the 1956 harvest; to increase the calf subsidy, the lime and fertiliser subsidies and the ploughing grants, and to make a special payment on hill sheep; to reduce the price guarantee for pigs; and to leave unchanged the price guarantees for wool for 1955–56, and for wheat and rye of the 1956 harvest. The importance of minimising the cost to the Exchequer has been recognised by the reduction in pig prices. The increased production grants and cereal prices are designed to help reduce the strain on the balance of overseas payments by encouraging the production and use of home grown feedingstuffs.
The Government are confident that these determinations should substantially help the industry, in the face on this occasion of heavy increases in costs coupled with exceptionally bad weather, to maintain and indeed increase its net output and income.
§ THE EARL OF LISTOWELMy Lords, I am grateful to the noble Earl for making this important statement. I am sure your Lordships will want no further interruption now of the debate for which most of your Lordships have come here this afternoon. I would merely express the hope that if, after we have studied the White Paper, we wish to discuss without delay this year's Price Review, the Government will help us to find the time.