§ 3.8 p.m.
§ LORD NUGENT OF GUILDFORDMy Lords, I beg leave to ask the Question of which I have given Private Notice to Her Majesty's Government; namely:
To ask whether the noble Lord, Lord Beswick, has anything to add to the Statement he made yesterday about the future price and marketing arrangements for eggs.
§ LORD BESWICKMy Lords, I hope that the following information will be helpful. As I said yesterday, the conclusions have been reached in the light of the views expressed by the interested organisations. These include the views of the farmers' unions. Noble Lords will have seen, however, that the initial reactions of the farmers' unions are that they are not in agreement with certain aspects of the proposals.
I was asked whether this scheme was a forerunner of a new agricultural policy. As I said yesterday, it would be wrong to assume that the policy for eggs will be extended to the rest of the field of agriculture. The new arrangements for eggs should be looked at on their own. In any event, we do not subsidise the production of milk or sugar; and we already have arrangements, designed to promote greater market stability, which regulate imports of some of the more important commodities such as cereals, butter, bacon and potatoes. Within our system of agricultural support there is plenty of room for flexibility, and the new system for eggs is designed to suit that particular commodity.
I was asked whether there will be special arrangements for the production 1028 and distribution of eggs from Northern Ireland. As noble Lords will have seen from the full Statement circulated in the OFFICIAL REPORT, the Government will be discussing with the Northern Ireland authorities the provision of special assistance towards sea transport costs for producers in Northern Ireland and similar provision will be made on this account for producers in the Orkneys.
My Lords, I was asked by the noble Lord, Lord Balerno, whether support buying and control of imports would take place simultaneously or whether they are alternates. As I said yesterday, this will be a simultaneous operation. The Egg Marketing Board already undertake market support, and this will also be one of the functions of the new authority. Minimum import prices will be introduced as soon as possible following discussions with the overseas suppliers. I was further asked whether the Government contemplate a levy on imported eggs. The answer is that the minimum import prices which we propose to introduce will be enforced by levies on imported eggs when the price falls below the minimum import price.
The noble Earl, Lord Ferrers, asked whether the producers will be given the chance, if necessary, of providing the whole of the market for eggs. The answer is that it remains our policy for the home producers to meet virtually the whole of the rising demand for eggs in this country. My noble friend Lord Silkin asked about the effect on the consumer and what will be the effect on egg prices. We are well aware of the importance of protecting the consumer under the new arrangements. As regards price, the Commission's view was that while prices might rise a little during the transition period, there might on balance be some reduction in retail prices in the longer term as a result of the continuing increase in the efficiency of production and of the economies which can be expected under free market conditions in marketing and distribution. I do not foresee any significant change in market prices to the consumer.
§ LORD NUGENT OF GUILDFORDMy Lords, may I thank the noble Lord for the very full replies he has given to the questions that we put yesterday. May I ask one further question? As the removal of eggs from the guaranteed price 1029 schedule, the First Schedule to the 1947 Agriculture Act, would increase to about 25 per cent. the proportion of total farm produce outside guaranteed prices, will the noble Lord tell us what implication this has for the Price Review machinery for the other commodities and whether the existing conventions will be valid when such a large part of the total production of agriculture is, or will be, outside the guaranteed price system?
§ LORD BESWICKMy Lords, I think the answer is that it will depend on the details of the scheme, which have yet to be worked out. The question of levies, the question of machinery for support prices, have all to be discussed with the interests concerned. I think it would be wrong to say what the effect will be on the general review of prices until we come to some conclusions as a result of the discussions with the interests concerned.
§ LORD NUGENT OF GUILDFORDMy Lords, I am sorry if my question was not clear. The question I am asking is this. Is the noble Lord aware that the price of eggs will be outside the control of the Government? Does the noble Lord realise that when an award is made in an Annual Price Review for increased costs, wages, and so forth, this is sufficient to cover the extra costs of different commodities? When eggs are out that machinery will no longer apply to about 25 per cent. of the total agricultural produce; and to that extent will invalidate the conventions of the Annual Price Review. Has this very important point been considered in the context of whether this total machinery should be maintained at all?
§ LORD BESWICKMy Lords, I think there is no question that the machinery for price review will have to be maintained. There is no question about that. To what extent the discussions will be changed because they cover fewer commodities is something we shall find out as we gain experience.
§ VISCOUNT DILHORNEMy Lords, the noble Lord referred in particular to Northern Irish eggs. Can he give an assurance that they will continue to be readily available in the neighbourhood of St. Paul's?