§ 3.56 p.m.
§ LORD BESWICKNegotiations for a renewed Bacon Market Sharing Understanding have now been completed and the new Understanding will be signed shortly. The basic aim of the renewed Understanding will be to provide for the orderly marketing of bacon in the United Kingdom and to preserve stable prices at levels reasonable to both producers and consumers.
591 There are two main changes. First, there is no longer a specific percentage share of the market laid down for the United Kingdom. Instead, the United Kingdom, after consultation with the Bacon Market Council, will determine each year not only the total quantity of bacon required on the United Kingdom market but also the expected level of bacon production in the United Kingdom. The difference between these figures will be shared among the exporting countries. Secondly, the Understanding has been strengthened in order to ensure in a more positive way than in the present Understanding that our suppliers' market in an orderly and a regular manner, as our own industry will also be expected to do.
The new Understanding takes effect on 1st April this year and will run for a term of three years. The situation will then be further reviewed. The total market requirement for the first twelve months is 639,000 tons and the expected level of bacon production in the United Kingdom is 233,600 tons, an increase of about 15,000 tons on this year's estimated level. I am making a complete list of the tonnages for 1969–70 available now in the Library and I shall circulate it in the OFFICIAL REPORT. As soon as the Understanding has been signed, the full text, together with the letters continuing bilateral understanding with Denmark and the Irish Republic, will be published as a White Paper.
§ Following is the list referred to in the Statement:
| Total | 639,000 tons |
| United Kingdom | 233,600 tons |
| Denmark | 302,850 tons |
| Poland | 50,310 tons |
| Ireland | 28,180 tons |
| Sweden | 11,010 tons |
| Netherlands | 8,160 tons |
| Hungary | 2,380 tons |
| Rumania | 1,500 tons |
| Yugoslavia | 1,010 tons |
§ LORD NUGENT OF GUILDFORDMy Lords, may I thank the noble Lord, Lord Beswick, for giving us this Statement, and may I ask him two questions? First, will this new Agreement enable Her Majesty's Government to give greater consideration than in the past to British farmers' capacity to supply the home market with bacon? Secondly, as quality decides the housewives' choice and therefore the strength of demand, will the noble Lord tell us whether the Meat and 592 Livestock Commission have the necessary resources and powers to encourage our farmers to increase the proportion of their total production which makes top quality bacon?
§ LORD BESWICKMy Lords, I quite agree with the noble Lord, There is a necessity to increase top quality production, and of course the Commission will be expected to do all possible to improve both the quality of marketing and the quantity produced. The Understanding will provide for an increased proportion next year, if we can meet that increased proportion. At the same time I should draw the attention of the noble Lord to the fact that we have this bilateral understanding both with Denmark and with Ireland and we shall, of course, honour the Agreement with those two countries.
§ LORD NUGENT OF GUILDFORDMy Lords, may I elucidate one point on my first question? Will this new Agreement enable Her Majesty's Government to give greater consideration to the home producers in filling the needs of the home market for bacon?
§ LORD BESWICKYes, my Lords, it will enable them to do that. What I was trying to emphasise was that to a large extent this is a matter for the producers and the curing industry. They have never yet been up against a ceiling, and an effort is required from them as well.
LORD HENLEYMy Lords, we welcome this Statement. The two changes seem sensible. I also welcome the answer which the noble Lord, Lord Beswick, has given to the noble Lord, Lord Nugent of Guildford, that in so far as the producers are capable of taking an increased share of production, this new Agreement enables them to do so.
§ LORD BESWICKMy Lords, I am much obliged to the noble Lord.
LORD HAWKEMy Lords, can the noble Lord say whether any calculation has been made of the effect on the balance of payments of this new Agreement? Will it make it more adverse or more in favour?
§ LORD BESWICKMy Lords, in so far as we produce more bacon in this country, it will help the balance of payments.
§ LORD BELSTEADMy Lords, would the noble Lord accept the fact, despite what he said, that probably the farming industry and also the curers will be looking with some consternation at the forthcoming Price Review?
§ LORD BESWICKMy Lords, I think that I had better stick to the Statement I have just made.