HC Deb 23 March 1971 vol 814 cc78-80W
Mr. Cledwyn Hughes

asked the Minister of Agriculture, Fisheries and Food if costs relating to milk outside the standdard quantity and eggs sold other than through packing stations were included in the total figure of cost increases in all the Annual Farm Price Reviews up to and including that for March, 1970.

Mr. Prior

The calculation of the total figures of cost changes on produce to which the guaranteed prices applied did, I understand, include—when standard quantities were in operation—some cost changes which related to production of milk and eggs outside the standard quantity. The basis of calculation was altered this year to bring it in line with the provisions of Section 3 of the Agriculture Act, 1957.

Mr. Arthur Lewis

asked the Minister of Agriculture, Fisheries and Food why his Department's decision to increase by £85 million over last year, the Farm Price Review to £138 million, taking account of the £54 million in the emergency review of last October, was given to the Press for publication on Monday, 15th March, before an announcement to the House of Commons; and whether he will take action to prevent this practice in the future.

Mr. Prior

The Annual Review procedures have always lent themselves to speculation—both ill-informed and well-informed. I am confident that there was no premature disclosure of information to the Press by my Department. But I can assure the hon. Member that in considering changes in the present procedures as we move to a levy system I will see what can be done to minimise the risk of the premature disclosure of information which causes embarrassment to the House and, indeed, to myself.

Mr. Deakins

asked the Minister of Agriculture, Fisheries and Food if the National Farmers' Union have agreed with the new basis of calculation of costs in the 1971 Annual Review.

Mr. Anthony Stodart

The Farmers' Unions have agreed that the calculation of costs on produce to which the guarantee prices apply made for the purposes of the 1971 Annual Review has been carried out in complete accordance with the provisions of the Agriculture Act, 1957.

Mr. Deakins

asked the Minister of Agriculture, Fisheries and Food what reasons the National Farmers' Unions have given him for their not agreeing with the 1971 Annual Review.

Mr. Anthony Stodart

The reason given by the National Farmers' Union was that in their opinion, the determinations failed to provide the necessary resources to enable the industry to expand on the scale required.

Mr. Gwynoro Jones

asked the Minister of Agriculture, Fisheries and Food how the method of computation of costs for the 1971 Annual Price Review on a strictly statutory basis differs from the practice adopted in previous reviews.

Mr. Prior

At this Review, costs changes have been calculated in respect of the produce to which the guaranteed prices apply in accordance with the provisions of the Agriculture Act, 1957. This has meant that, in arriving at the total figure, costs changes in respect of milk and eggs have related to the standard quantitites only. At previous Reviews, the assessments of cost changes in respect of feedingstuffs for milk and eggs and transport costs for milk included amounts relating to produce outside the standard quantities in the years when these were in operation. All other cost changes were correctly calculated in respect of the standard quantities only.

Mr. Deakins

asked the Minister of Agriculture, Fisheries and Food what is the figure of increased costs in the 1971 Annual Review comparable with the figure of £60 million increased costs shown in paragraph 16 of the 1970 Annual Review.

Mr. Prior

The calculation of cost changes in respect of products to which the guaranteed prices apply has been made this year in accordance with the provisions of the Agriculture Act, 1957. I see no useful purpose in attempting to recalculate this year's costs on the basis used at the 1970 Annual Review.