HL Deb 15 July 1975 vol 362 cc1111-3
Viscount BROOKEBOROUGH

My 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 whether they are aware of the difference in price being paid to farmers for fat cattle in Northern Ireland compared to that ruling in Great Britain by the meat factories.

The PARLIAMENTARY UNDERSECRETARY of STATE, NORTHERN IRELAND OFFICE (Lord Donaldson of Kingsbridge)

My Lords, the current difference between prices paid by Northern Ireland meat plants and comparative prices in Great Britain is in the region of £3 per live hundredweight. I should add that at the moment, because a variable premium is payable on fat cattle in the United Kingdom, the return to Northern Ireland producers is within £1 per hundredweight of that to producers in Great Britain.

I am concerned that, in the current situation of plentiful supply, prices paid to producers in Northern Ireland are lower than might be expected, bearing in mind comparative producer prices in Great Britain, which is the main market for Northern Ireland beef. This is a similar situation to that prevailing last autumn. Meat plants in Northern Ireland benefit from an employment subsidy when cattle supplies are scarce, and I consider they should take a less niggardly attitude towards pricing when cattle are plentiful, in order to foster the longer-term health of the industry. I know that my concern is shared by my right honourable friend the Minister of Agriculture, Fisheries and Food.

Viscount BROOKEBOROUGH

My Lords, I thank the noble Lord for his reply. May I ask whether he is aware that is costs only £1 per hundredweight to shift cattle live to the English coast? Is he also aware that a considerable problem faces anybody wishing to export cattle to this country, because of the inadequacy of shipping facilities, and do the Government intend to do something to improve the situation? Furthermore, are the Government aware that this is not solely a Northern Ireland problem, and that the overhang of beef at a lower price on this market has a much greater effect in a situation of over-supply than at any other time?

Lord DONALDSON of KINGS-BRIDGE

My Lords, I accept the noble Viscount's general point. Something is in fact being done about it. There have been intensive discussions with the Ulster Farmers' Union and the Agricultural Trust, with a view to putting up the lairage at Cairnryan, at the other end of the Larne crossing. The Agricultural Trust are doing this in conjunction with local people, and this should help the situation. Another effort is also being made but is a good deal further from fruition. Discussions are being held on getting together a farmers' co-operative or some similar body to run their own cattle boats. This could improve matters, but there are a good many difficulties at present. The Government are aware of them and agree with the desirability of getting something done.

Lord STANLEY of ALDERNEY

My Lords, will the noble Lord agree that this problem divides itself into two halves, one of which concerns MCAs and the other concerns transportation? May I ask the noble Lord whether he would urgently consider the revaluation of the Green Pound? Is it not ridiculous that at the moment we have 18 per cent. in this country and 20 per cent. in Eire and yet our common pound, if I may so call it, is the same? Does not the noble Lord's mind boggle as much as mine over this? On the question of transportation, would the noble Lord ask his right honourable friend, when he considers the possibility of closing down the lairage in Holyhead this autumn, to bear in mind the remarks made by the noble Lord concerning this problem?

Lord DONALDSON of KINGS-BRIDGE

My Lords, I disclaim any boggling of the mind over this, but it is not a simple problem, as the noble Lord will know. We have had intensive discussions regarding the Green Pound and the question is not yet resolved though some action, perhaps of a rather more limited kind than some of us hoped for, is to be expected. One difficulty is that if we move the Green Pound there is nothing to stop our friends in the South moving theirs again, which leaves us where we were before. As regards the second part of the noble Lord's supplementary question, I will pass on to my right honourable friend what has been said.