§ Mrs. Winifred Ewingasked the Secretary of State for Scotland if he will review the wool guarantee, in the light of problems experienced by many wool producers in Scotland.
§ Mr. Grimondasked the Secretary of State for Scotland whether he will review the wool market and enable wool producers to obtain the market price for their wool.
§ Mr. William RossMy right hon. Friend the Minister of Agriculture, Fisheries and Food and I are considering representations which have been made to us on behalf of wool producers, but there does not appear to us to be any strong case, particularly in view of the present level of returns to the sheep industry as a whole, for reopening the determination made by the previous Government at this year's annual review of agriculture.
§ Mr. Grimondasked the Secretary of State for Scotland over what period the Wool Marketing Board is expected to repay the debts incurred through the market system.
§ Mr. William RossThe present financial agreement between Ministers and the British Wool Marketing Board came into operation on 1st May 1965. The agreement covers a 15-year period but provides for interim settlements at each of successive five-year periods. At the end of each of these periods, any surplus in excess of £5 million, accumulated from market returns during the period, is retained by the board or any debt to the Exchequer in excess of £3 million, arising from the shortfall of auction prices, is written off. At the final settlement in 1980, the whole of any outstanding debts will be written off or any surplus will be retained by the board.
At the interim settlement in April 1970, £22.6 million was written off the board's outstanding deficit.