§ Sir G. de Freitasasked the Minister of Agriculture, Fisheries and Food what is the outcome of his review of the market 69W support arrangements for potatoes; and if he will make a statement.
§ Mr. PeartImproved arrangements for the introduction and financing of support buying for potatoes will operate from 1st August next. In future, a buying programme, financed jointly by the Government and the Potato Marketing Board, may be introduced whenever it seems likely that, unless this is done, a deficiency payment may arise at the end of the season. Under the former arrangements the Agriculture Ministers could only commit the Exchequer in advance to paying two-thirds of the cost of a joint buying programme if they were satisfied that there was likely to be a heavy surplus; and the season might be well advanced before the supply situation became clear.
The new arrangements should be more flexible and should make it easier to anticipate developments in the market situation. The Board will be able, subject to Government approval, to announce a buying programme at any time on or after 1st August (the beginning of the guarantee year) but no programme will normally be open for offers by growers after 31st March. The Government's share of the cost will depend on the average market price, as calculated at the end of the season which will, of course, have been influenced by the size of the surplus as well as by the buying programme itself. The Government will still carry two-thirds of the cost when this average price has been near to the guaranteed price. If, however, the average price has reached a level of 5s. or more above the guarantee, with corresponding benefits to growers, the Government's share of the cost will decrease progressively and the Board's will increase. The Board's share of the cost will, as now, be met from their annual payments of £1 million into the Market Support Fund. Taking one year with another, the respective liabilities of the Government and the Board should be broadly the same as at present.
As part of the new arrangements, the Government will determine in consultation with the Board, before each season begins, the lowest level of prices at which potatoes would be bought for delivery in the months October to March if a buying programme were introduced. These minimum prices will be announced before 1st July each year. There will be no implication that a buying programme 70W will necessarily be introduced if, at any time in the season, market prices approach or fall below the announced scale of buying prices; a number of factors, of which the current level of prices is only one, would need to be taken into account in deciding at any point in the season whether a buying programme should be introduced in accordance with the objectives of the agreement, and if so at what level (at or above the announced minimum buying prices) it should be introduced.
These improved arrangements, which apply to Great Britain, result from discussions between the Agricultural Departments, the National Farmers Unions of England and Wales and Scotland and the Potato Marketing Board. They are subject to no specific time limit but may be reviewed from time to time.
Discussions are now taking place about the future arrangements for Northern Ireland.