HL Deb 19 May 1971 vol 319 cc449-51

2.56 p.m.

VISCOUNT MASSEREENE AND FERRARD

My Lords, I beg leave to ask the first Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether it is true that offers to this country of low priced milling wheats may result in dearer flour and bread for the consumer; and whether they can give an assurance that such developments can be avoided.]

EARL FERRERS

My Lords, the price of wheat is only one among several factors affecting the price of bread and flour. To what extent levies on wheat will prove necessary, due to low priced milling wheats, is unpredictable.

VISCOUNT MASEREENE AND FERRARD

My Lords, while thanking my noble friend for that Answer, and while I hold the view that the British farmer should be protected from imports of soft wheats, may I ask my noble friend, with regard to hard wheats, which the United Kingdom cannot produce for milling, why is it necessary to put import duties on these hard wheats?

EARL FERRERS

My Lords, the purpose of the levy system is to stabilise prices in the United Kingdom market and where the price of wheat is below the minimum import price, a. levy is placed on it.

LORD PARGITER

My Lcrds, presumably the net effect is to make food dearer.

EARL FERRERS

No, my Lords, not necessarily.

VISCOUNT MASSEREENE AND FERRARD

My Lords, I beg leave to ask the second Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether they will give an assurance that the price of flour and bread will not need to be increased in the short term or long term by import levies determined by the price of wheat which this country may not need and may not not purchase.]

EARL FERRERS

My Lords, the main objective of the minimum impart price system is to stabilise market prices. Low priced offers, even though not followed by import, affect the tone of the import market. The purpose of the evies is, therefore, to maintain the minimum import price.

VISCOUNT MASSEREENE AND FERRARD

My Lords, while thanking my noble friend for that Answer, may I ask him why an import levy should be levied on all wheat? If a certain wheat falls below a certain price and therefore a levy is charged on it, why should that affect all wheats? [ cannot understand the connection. May I ask my noble friend why, because there is an import levy on one low-priced hard wheat, we should have an equivalent levy on all other hard wheats, which may already be at a high price?

EARL FERRERS

My Lords, the whole purpose of the levy system is to put a general levy on wheats which come into this country irrespective of their place of origin.

LORD BESWICK

My Lords, the noble Earl says that the imposition of a levy would not necessarily increase the price of food. Could he give us an indication of the circumstances in which the imposition of a levy would reduce the price of food?

EARL FERRERS

Yes, my Lords, because if the wheat coming into the country is below the minimum import price (and it is the minimum import price which will affect the price of wheat) then the levy merely brings that wheat up to the minimum import price.

LORD LEATHERLAND

My Lords, is is really necessary for us to get tied up in these technical intricacies, when Mr. Pryor, the Minister of Agriculture, today has repeated once more that the Government are determined to force up food prices all they can before our entry into the Common Market, so that there will not be a sudden jump on that occasion?

EARL FERRERS

My Lords, I have not had the advantage of seeing the speech to which the noble Lord refers, so I cannot comment on it.

LORD ALPORT

My Lords, is this not an entirely wrong interpretation of what the Minister of Agriculture said and purely an attempt to make a Party point in circumstances which really do not do credit to the noble Lord?

EARL FERRERS

My Lords, that does not surprise me.

LORD SHINWELL

My Lords, do I understand from the noble Earl, Lord Ferrers, that wheat coming from Canada, a Commonwealth country, is not to be subject to any import levy, restriction of duty, but would not be different in price from wheat coming from a country associated with the E.E.C. which is subject to an import levy? Is there to be no differential at all? If so, what is the point of an import levy?

EARL FERRERS

My Lords, there will be a differentiation in the price of imports from the country of origin, but not a differentiation in the levy imposed.