FERTILISERS (UNITED KINGDOM) SCHEME, 1959 (Hansard, 18 June 1959)

EARL WALDEGRAVE

My Lords, the Fertilisers Scheme for 1959, like the present one, covers the whole of the United Kingdom. It extends the fertiliser subsidy arrangements for a further year from July 1. It provides for the payment of contributions to occupiers of agricultural land and to associations of farmers, allotment holders, smallholders and the like, who acquire fertilisers in bulk for redistribution to their members, for nitrogenous and phosphatic fertilisers delivered to them during the year ending June 30, 1960. The estimated cost of the subsidy for the year 1959–60 is about £28 million. Since no change was made in the fertiliser subsidy at the Price Review this year, the scheme is substantially the same as the existing one as there are no alterations in the basic rates of contribution. The amount per ton for sulphate of ammonia has, however, been raised by 1s. 6d. to take account of a slight increase in its guaranteed nitrogen content, from 20.8 per cent. to 21 per cent., as from July 1.

The main purpose of this production grant of course is, to encourage farmers to increase their efficiency by using more fertilisers, and I am glad to say that consumption has been rising steadily since the present form of subsidy was introduced in 1952. The use of nitrogen has gone up by about 50 per cent. since 1952–53, while the consumption of phosphates has also risen, although not to the same extent. Potash is not subsidised but its use has also risen at about the same rate as nitrogen. It is of course included in a great many compounds which do receive a subsidy because of their nitrogenous or phosphatic content.

This increased consumption is very satisfactory. But no one, I think, would argue that there is not room for further improvement. The Committee on Grassland Utilisation, under Sir Sidney Caine, looked at this question and pointed out that there is much scope for the greater use of fertilisers on grassland. I am pleased to be able to say that some of the largest manufacturers have recently announced reductions in prices of certain fertilisers. I am sure that the House will welcome these reductions which, taken in conjunction with the assistance given to farmers through the subsidy, should 1262 lead to greater efficiency on the farm. I hope this scheme will meet with the approval of the House. I beg to move.