HC Deb 30 November 1967 vol 755 cc160-1W
Mr. Mackintosh

asked the Minister of Agriculture, Fisheries and Food what is the estimated increase in the cost to agriculture of the present 8 per cent. rate of interest over the next 12 months; and what instructions will be given to banks about special facilities for credit for agricultural expansion.

Mr. Peart

As I explained in the reply which I gave to the hon. Member for Westmorland (Mr. Jopling) on 23rd November, the increased cost to farmers of the 8 per cent. Bank Rate would be about £7 million over a full year, of which about £4 million would be in respect of credit for current farming purposes.

As regards the second part of the Question, I would refer my hon. Friend to the reply given to the hon. Member for Norfolk. South (Mr. J. E. B. Hill) by the Chief Secretary to the Treasury on 23rd November.—[Vol. 754, c. 425; c. 417.]

Mr. Mackintosh

asked the Minister of Agriculture, Fisheries and Food what he estimates to have been the rise in costs of the farming industry since the last price review in terms of wages awards, fuel, fertiliser and incidental price rises up to 18th November, 1967, and also the rises in costs which can be expected as a result of the devaluation of the £ sterling.

Mr. Peart

I estimate that the cost changes announced before 18th November would, in a full year, amount to about £14 million for wages, about £3¼ million for petroleum products and about £9½ million for fertilisers. I cannot yet say what the total rise in all relevant costs will be in a full year, and it is too early to assess what additional costs may arise from devaluation.

Mr. Mackintosh

asked the Minister of Agriculture, Fisheries and Food what studies he has made of the anticipated increase in agricultural output which would result from specific increases in agricultural support; and if he will publish any such tables so that the cost to the taxpayer of agricultural expansion and import substitution at various levels can be known.

Mr. Peart

Changes in the level of agricultural output cannot be related simply to changes in the level of agricultural support. Many other factors are involved such as changes in factor cost, technological developments and improvements in efficiency. It is not practicable therefore to publish the type of information requested.