§ 3.40 p.m.
§ LORD DENHAMMy Lords, with the leave of the House I should like now to repeat a Statement which is being made in another place by my right honourable friend the Minister of Agriculture. The Statement is as follows:
"With permission, Mr. Speaker, I would like to make a statement on the Government's determinations following the Annual Farm Price Review. This year I am sure it would meet the wishes of the House to do so at once.
"The background to this year's Review is our approach to Europe. It is important that the industry should be in a position to expand competitively in the enlarged Community and so help the country to save on its overseas food bills. For this investment is essential, particularly as early expansion is in our view important.
1108 We have examined with the Farmers' Unions the resources available.
"The industry is to-day in a much healthier position than it was. The Government's policies arc clearly succeeding. Output, productivity and aggregate income have all risen again. The cash position and the confidence of the industry are being restored.
"If we are going to get the quick expansion we need, further resources must be provided. We have decided to increase the value of the guarantees by well above the cost increases falling on the industry. The determinations thus provide a cash injection for further investment additional to the resources generated by the industry's own efforts and increasing scale. We believe that the industry will respond as it has done in the past.
"We have nut the main emphasis on the livestock sector, particularly on cattle where the time lag between the decision to expand and the actual increase in production is inevitably longest. And we have put the money on end price guarantees. We have also decided to switch about 60 per cent. of the fertiliser subsidy to end prices. This will give the industry greater flexibility in the application of resources. In the case of horticulture, the fertiliser change will be offset by increasing the combined grant rate under the Horticulture Improvement Scheme from 35 to 40 per cent. Hill farmers will be helped by increasing the winter keep subsidies. We also propose to retain under the Farm Capital Grant scheme the 10 per cent. supplement on drainage; at the same time a few small items will be eliminated from that Scheme.
"The main increases in the guarantees are as follows: Milk, 1p per gallon; beef, 85p per cwt.; sheep, 2p per lb.; pigs, 5p per score; wheat, 9p per cwt.; barley, 11p per cwt.; oats, 7p per cwt.; and sugar beet, 40p per ton.
"These changes represent an increase of some £70½ million on the value of the guarantees. The capital grant changes I have mentioned are worth some £1½ million in addition. They will not add to consumer prices this year.
1109 "I will circulate a note on these changes with the OFFICIAL REPORT."
§ That, of course, was my right honourable friend speaking, and perhaps I may say in parenthesis here that the note will also be circulated, with your Lordships'
| THE DETERMINATIONS FOR 1972–73* | |||
| Commodity | Guaranteed price for 1971–72 |
Change from Col. (2) |
Guaranteed price for 1972–73 |
| (1) | (2) | (3) | (4) |
| Wheat (per cwt.) | £1.63 | + 9p | £1.72 |
| Barley (per cwt.) | £1.45 | +11p | £1.56 |
| Oats (per cwt.) | £1.44 | + 7p | £1.51 |
| Rye (per cwt.) | £1.08 | No change | £1.08 |
| Potatoes (per ton) | £16.55 | No change | £16.55 |
| Sugar beet (per ton) | £7.60 | +40p | £8.00 |
| Fat cattle (per live cwt.) | £12.35 | +85p | £13.20 |
| Fat sheep (per lb. e.d.c.w.) | 22.3p | + 2.0p | 24 .3p |
| Fat pigs (per score d.w.). | £2.93 | + 5p | £2.81† |
| equivalent (on the basis of the current feed price) to £2.76 | |||
| Milk (per gallon) | 22.1p | + 1.0p | 23.1p‡ |
| Eggs—hen (per dozen) | 16.5p | - 0.5p | 16.0p |
| Eggs—duck (per dozen) | 15.5p | No change | 15.5p |
| Wool (per lb.) | 22.7p | + 0.3p | 23.0p |
| Relevant production grants | |||
| Fertiliser subsidy: reduction in rates equivalent to £20 million. | |||
| Winter keep subsidy: increase in rates equivalent to£1 million. | |||
| (1) "Farm Business Recording Scheme: termination in May 1972 as already announced." | |||
| Non-relevant production grants | |||
| Farm Capital Grant Scheme: continuation of grants for drainage at the enhanced rates of the last two years; elimination of various minor items. | |||
| Horticulture Improvement Scheme: increase in rates of grant. |
§ Notes:
§ * Changes in the basis of the guarantees will be set out more fully later in the Annual Review White Paper.
§ † Fat pigs. The middle band under the flexible guarantee arrangements will be 14.35–15.0 million certifications.
§ ‡ Milk. In addition to the increase shown the guaranteed price for the Northern Ireland milk marketing area will be raised by 0.15p per gallon. The standard quantities for Great Britain will remain at their 1971–72 levels but that for Northern Ireland will be increased by 14.8 million gallons to 120 million gallons.
§ (2)"Exchequer Commitment. These determinations involve an increased Exchequer commitment for 1972–73 of about £49 million."