§ 2.47 p.m.
§ Lord HOUGHTON of SOWERBYMy 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 what is the cause of the decline of 8 per cent. in the number of beef cattle on English and Welsh farms at 31st December 1977 over the previous year; and how far the export of live cattle and calves has contributed to this decline and to the rising prices which have followed the fall in livestock numbers.
§ Lord STRABOLGIMy Lords, the figures for beef cattle in the December census for England and Wales relate to cows kept mainly for rearing calves for beef. Very few of these cows have been exported. The decline in their number is due to a range of factors, including the continued switch towards beef from the dairy herd, the relative profitability of other enterprises and the heavy slaughter of breeding stock in 1974 and 1975.
The export trade in calves consists chiefly of bull calves from the dairy herd: it thus has little direct bearing on the size of the beef breeding herd. All aspects of the export trade in live calves have been 1792 examined by a working party of officials of the Agriculture Departments whose report will be published tomorrow. Prices for fat cattle are above those of a year ago but since September last have been below the target price, with producers' returns being maintained at target price levels by premium payments.
§ Lord HOUGHTON of SOWERBYMy Lords, while thanking my noble friend for that long and undoubtedly convincing reply, which I shall study carefully, may I ask whether he knows if the publication of the report of the working party will come out before I have the opportunity of asking my Unstarred Question tomorrow? Or may I assume that a number of questions which I want to put will be answered in that paper? The confusion about this situation is that so many more—
§ Several noble Lords: Question!
§ Lord HOUGHTON of SOWERBY—live calves and sheep are being exported as a percentage of our total production than in earlier years. The confusion about this situation needs to be cleared up.
§ Several noble Lords: Question!
§ Lord HOUGHTON of SOWERBYMy Lords, can the noble Lord offer any hope in the publication of the working party's report that this confused situation will be fully explained?
§ Lord STRABOLGIMy Lords, the report will be published and will be available tomorrow morning, in good time, I think, for the debate on my noble friend's Unstarred Question. With regard to its contents, Ministers will need time to study the implications and to take soundings before reaching a decision on the future of the trade. I am sure that noble Lords and other interested parties will also wish to study the report.
§ Lord CARRINGTONMy Lords, is the noble Lord aware that those of us who are farmers, and who are in the beef business, do not understand what he and the noble Lord, Lord Houghton of Sowerby, are saying? The answer is perfectly simple; there is no money in it.
§ Lord STRABOLGIMy Lords, I really cannot let the noble Lord the 1793 Leader of the Opposition get away with that, even though we are approaching the Easter Recess. We have seen a good recovery from the weak beef markets last autumn, and home slaughtering since Christmas has been above last year's levels. Despite this, market prices have been very much stronger, and consumers and producers continue to benefit from the variable premiums which have kept producer returns up to target price levels, and have moderated intervention purchases.
§ Lord HOUGHTON of SOWERBYMy Lords, what I think the noble Lord—
§ The LORD PRIVY SEAL (Lord Peart)My Lords, I know my noble friend takes a great interest in this and I do not want to curb his enthusiasm, but he must ask a question.
§ Lord TRANMIREMy Lords, arising out of that reply, is it not a fact that the price received by the home producer of beef is something like 30 per cent. less than what is received by the French producer?
§ Lord STRABOLGIMy Lords, following the 5 per cent. devaluation of the green pound on 1st February and the extension of the beef marketing year to the end of April, the target price in the last week of April will be 66.75p per live kilo, an increase of 11.63p above the target price at the same time last year.
§ Lord HOUGHTON of SOWERBYMy Lords, in view of the fact that the proportion of the output of calves, cattle and sheep being exported has risen significantly in the last 12 months, may I ask my noble friend whether British farmers are selling Britain short?
§ Lord STRABOLGIMy Lords, all these aspects, of course, are dealt with in the report, which does not make an overall recommendation for or against the continuance of the trade. It examines all aspects clearly and objectively, and draws conclusions on particular points. The overall decision is a matter for Ministers, and we shall look forward to hearing the views of all the interests concerned.
Viscount ST. DAVIDSMy Lords, would the noble Lord, Lord Strabolgi, confirm that, in an earlier reply on this Question today, he said that the reason for the reduction was that other farming operations were more profitable than this? Does it therefore not follow in logic that the reason for the reduction is that this operation is less profitable?
§ Lord GLENKINGLASMy Lords, I wonder whether the noble Lord could, without anticipating tomorrow's debate, agree largely with what my noble friend Lord Carrington said; namely, that the drop in the number of beef cattle was basically because there was no money in their production? Does he not agree that, although the prices have—thank goodness !—improved a little this spring, the worry of the beef breeders has been the drop in the prices and the rise in feedingstuff costs in the last year or two? Would he also agree that the only thing which has kept the farmers going is the fact that they have been able to export a certain number of cattle and sheep at reasonable prices to the Common Market? Far from selling the country short, does not the noble Lord the Minister feel that the farmers are doing a very good job despite great difficulties?
§ Lord STRABOLGIMy Lords, I am sure that there is a lot in what the noble Lord says. From 1st May, the support levels will also benefit from the further 2½ per cent. devaluation of the green pound and whatever increase is agreed in the common support price. These will be reflected in the target prices for the rest of this year.
§ Lord HAILSHAM of SAINT MARYLEBONE:My Lords, would not the noble Lord repudiate with an unqualified answer the suggestion that because people export they are selling the country short?
§ Lord STRABOLGIYes, certainly, my Lords.