§ 3.9 p.m.
§ THE JOINT PARLIAMENTARY SECRETARY, MINISTRY OF AGRICULTURE, FISHERIES AND FOOD(EARL WALDEGRAVE) rose to move, That the Calf Subsidies (England and Wales and Northern Ireland) (Variation) Scheme, 1959, be made in the form of the draft laid before this House on the 5th of May last. The noble Earl said; My Lords, if it is convenient to your Lordships, I think it might be well if I were to discuss the England and Wales and Northern Ireland Scheme and the Scottish Scheme at the same time, as my noble friend Lords Forbes is unable to be here this afternoon and has asked me to take this matter for him. We could then discuss these two Schemes together.
§ The purpose of these Schemes, of course, is to give effect to the decision announced in the White Paper on the Annual Review and Determination of Guarantees, 1959 (Cmnd. 696), paragraph 23, to increase the rate of calf subsidy from £8 10s. to £9 5s. a head for eligible steer calves born on or after April 1, 1959. These Schemes therefore vary the existing ones which apply to calves born up to October 29, 1961, and the new rate, unless again varied, will apply to steer calves born up to that date. The Schemes make no other change.
§ Your Lordships will be aware that the purpose of the subsidy is to encourage the rearing of calves for beef production. The number of calves so reared has shown a steady rise over the years since the introduction of the subsidy, and it is fair to infer from this that the increase has been materially assisted by the subsidy. It is most important that this trend should not be reversed at the present time, owing to the general shortfall of beef supplies, particularly from the Argentine: but even now an appreciable number of male calves are still slaughtered within a few days of birth which could well be reared as stores. To encourage them to be reared it is proposed to increase the subsidy on steer calves. For several years it has been clear that practically all heifer calves, 1259 except those not fit for rearing, have been saved for breeding or rearing for mature beef; and it has been the policy since 1956 to limit any increase in the subsidy to steer calves only. But there is still a substantial subsidy of £7 10s. a head on heifer calves.
§ Your Lordships may wonder why the increase applies to calves born on or after April 1, since this date falls in the middle of the spring calving season and might therefore be thought unfair to owners of calves born in February and March. I agree that April 1 is not an ideal date, and we did give careful thought to possible alternatives. However, we could not justify making the increase retrospective, because its purpose is to provide an incentive to farmers to rear more steer calves in the future, and not to pay a bonus on calves already reared.
§ In some ways it might have been fairer to start the increase with calves born in July or August, so as to avoid cutting into a calving season. Unfortunately, since calves do not usually qualify until they are eight months old, this would have meant that no calves would have earned the increase during 1959–60 season. This was not acceptable. On balance, therefore, and since April 1 marks the beginning of the livestock year, when changes in guaranteed prices of livestock and livestock products under an Annual Review award take effect, we considered this to be the best date.
§ During the ten years it has been operating the calf subsidy has made a very valuable contribution to increasing our supplies of home-produced beef, and a further increase in these supplies is very desirable. I confidently expect that the increase in the subsidy will result in more calves being reared for beef, and I commend the Schemes to the House. I beg to move.
§ Moved, That the Calf Subsidies (England and Wales and Northern Ireland) (Variation) Scheme, 1959, be made in the form of the draft laid before this House on the 5th of May last.—(Earl Waldegrave.)
VISCOUNT ALEXANDER OF HILLS BOROUGHMy Lords, I am grateful to the noble Earl for the explanation he has given. I think on reflection that 1260 the explanation he gave about fixing April 1 as the date is a reasonable one. It can hardly be said to be quite fair to increase the subsidy for someone who would determine his policy on these calves months before the date given. The thing that strikes me about it is that the trend is satisfactory and it shows that the subsidy has been successful. It is also pretty certain that we shall want to go on increasing the number of animals reared for beef. On the other hand, what the Minister says is perfectly true: that a large number of steer calves are still being slaughtered. One can understand why some of the steer calves from dairy herds are treated as "bobbies" right from their date of birth and got rid of in three or four days, but, surely, if a steer calf of a dairy Shorthorn or Ayrshire can be reared to a state satisfactory to the person who makes certification on behalf of the Ministry, it ought not to be ruled out from the subsidy. Is there any bar remaining to prevent its being kept with a view to certification at a proper age?
EARL WALDEGRAVEMy Lords, with your Lordships' permission, I would say that I am not quite sure what the noble Viscount means. All steer calves, even Jersey steer calves, that reach certification standard are eligible for subsidy.
VISCOUNT ALEXANDER OF HILLS-BOROUGHMy Lords, I am glad to have had that statement specifically made by the Minister, because it is not fully understood by a large number of farmers. In fear that they are not going to get a subsidy, it has become a matter of habit to send off steer calves of dairy herds within three or four days.
§ On Question, Motion agreed to.