§ 2.40 p.m.
§ LORD ALLERTONMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government what is the reason for the low market price of fat cattle which results in a subsidy of over £3 per cwt., and whether they are satisfied that imports of meat have not been excessive.]
§ LORD HASTINGSMy Lords, present low prices are the result of a combination of factors. For several weeks now, substantially more cattle have been marketed than is usual at this time of year. Some came forward unusually early because of the forward grass season, but more recently shortage of keep has also brought unusual numbers to the market. It is also possible that some farmers may have been misguidedly attracted by the high rate of guarantee payment to market their stock prematurely. As might be expected in these conditions, quality has not always been of the best. Coinciding with all this, the spells of tine weather we have been enjoying seem to have turned interest away from beef, particularly from the least choice cuts, towards other meats and poultry, supplies of which are plentiful. Imports of meat so far this year are lower than last and cannot be regarded as excessive.
§ LORD ALLERTONMy Lords, I thank the noble Lord for that Answer, but may I ask him what proportion of 514 the subsidy now paid is being passed on to the consumer?
§ LORD HASTINGSMy Lords, I am not quite sure that I am clear as to the point my noble friend is trying to make. Is he referring to the retail prices?
§ LORD ALLERTONYes.
§ LORD HASTINGSMy Lords, there are no precise figures of retail prices, but I understand that there have been reductions over recent weeks, particularly in the prices of the cheaper cuts. We hope that butchers will keep in mind the desirability of stimulating demand for beef, and this is one of the points that my right honourable friend the Minister of Agriculture, Fisheries and Food raised when he met representatives of this trade a few days ago.
§ VISCOUNT ALEXANDER OF HILLSBOROUGHMy Lords, does this not seem to point to the fact that, if you want to continue what was intended to be not only the maintenance of beef production but also a cushion for the consumer, there should be a proper control of prices right through?—because it is quite certain that the difference between, say, 180s. and 115s. in the market is not being passed on in that proportion to the consumer.
§ LORD HASTINGSMy Lords, it is true that the low market price has not been reflected in a similar reduction in the retail price but, as I am sure the noble Viscount knows, these things do not always follow at the same time. Of course, the butchers continue to have their overheads, and they average out prices over their various products. As for the other suggestion the noble Viscount made about control (I think he was suggesting that one should control retail prices as well) that, of course, is a matter of Government policy, on which he will not expect me to comment.
§ LORD BARNBYMy Lords, arising out of the previous questions, would it not be possible for the noble Lord to recommend that consideration be given to the possibility of some supplementary publicity or information which would give some greater reassurance to the public that the high cost of subsidy to the Exchequer now really does in some way get tied in with prices to consumers? Some of us who are farmers are much 515 alarmed at the high subsidy that we obtain for cattle which does not seem to be coming through to the retailer. It would be helpful if the noble Lord could give consideration to some kind of supplementary publicity.
§ LORD HASTINGSMy Lords, I am grateful to the noble Lord for his supplementary. Of course, there is anxiety among some farmers that the subsidy seems to be running too high—that is to say, it represents too large a proportion of the total price—but I think it is too early to say at this stage how the total subsidy will work out at the end of the year. This is generally believed to be an exceptional case, due, as I pointed out in my original Answer, to the flush of grass, in the first place, followed by a prolonged drought, resulting suddenly in a shortage of keep in the second place, with the added influx of cattle to the market which would not normally have been expected. It is thought that this condition is purely temporary.
As for the noble Lord's suggestion, I am sure that my right honourable friend the Minister will pay special attention to his remarks. I have no doubt that they will be read by the organisations which represent the butchers and the retail trade, and I have no doubt that the purport of his remarks will not fall on deaf ears.