§ 67. Mr. Pottasked the Minister of Agriculture, Fisheries and Food whether he will now make a statement about the guarantee arrangements for potatoes.
§ Mr. John HareThe White Paper on the 1958 Annual Review stated that experience had shown the need for altering the system of implementing the guarantee for potatoes and that discussions were proceeding with representatives of the producers. It also stated that a further announcement would be made by 1st July, 1958.
In the Government's view, the present support price arrangements, which are essentially the same as those introduced in 1940 and administered by the Ministry of Food all through the war and post-war years of food shortage, are unsuited to present day conditions and can no longer be justified. They have concluded that a change in the system can no longer be postponed.
The Government have accordingly decided to introduce a new guarantee system for the 1959 crop which substitutes for the purchase of surplus potatoes on Government account arrangements that assure a minimum return to the industry as a whole related to the requirements of potatoes for human consumption. If in any crop year the actual return to the industry from the market for potatoes for human consumption falls below the guaranteed return, the deficiency will be made good from Exchequer funds.
In Great Britain the Government propose that the amount due should be paid to the Potato Marketing Board for the benefit of producers in Great Britain; separate arrangements would be necessary in Northern Ireland where there is no Board. It would be for the Board to decide how any such payment was used for the benefit of producers; the Board would be at liberty to use deficiency payment monies for buying potatoes. There will no longer be a minimum riddle prescribed by the Government and no schedule of support prices will be prescribed at the beginning of the season either by the Government or the Board.
62WThe Government recognise that some variation in the potato crop is unavoidable, but they consider that by facilitating the use by the Potato Marketing Board of their statutory powers for regulating the market, the new system will promote a greater measure of stability for the industry. They also consider that the new system will give greater encouragement to the economic production and marketing of potatoes and considerably reduce the need to transport surplus potatoes about the country at heavy cost which is inevitable under the present system. In addition, it achieves the Government's object of eliminating the purchase of surplus potatoes on Government account and will, they believe, make for greater efficiency generally in the administration of the guarantee arrangements.
The Government have given an assurance that the change in the system of guarantee will not reduce its value to the industry. Discussions on the financial arrangements required to secure this are continuing. The producers' representatives have indicated that they would be prepared to accept in principle the introduction of the new system subject to agreement on these financial arrangements which are of crucial importance to the industry if the new system is to work satisfactorily.
The details of the new arrangements will be worked out in consultation with the producers' representatives and announced as soon as possible.
Special arrangements will be necessary to fit Northern Ireland into the new scheme. These arrangements will allow Northern Ireland producers to continue to have a fair share of the Great Britain market but without adversely affecting the efforts of the Potato Marketing Board to maintain a satisfactory level of prices in Great Britain.