HC Deb 19 December 1966 vol 738 cc227-8W
Mr. Gwynfor Evans

asked the Minister of Agriculture, Fisheries and Food what measures he proposes to take to meet the recent situation in the Welsh fatstock market where the prices received by many farmers were below the guaranteed minimum even including deficiency payments.

Mr. Hoy

Although prices on particular markets may differ, average prices in Wales have not diverged abnormally from those elsewhere. Average returns to farmers in the U.K. are at present below the standard price because the deficiency payment is subject to abatement; but the difference will be reduced when the end of year payment that we now expect is made.

Mr. Gwynfor Evans

asked the Minister of Agriculture, Fisheries and Food if he will recommend that the abatement charge, which has injured the interests of Welsh farmers during the recent depression in fatstock prices, be abolished.

Mr. Hoy

The present guarantee arrangements provide not only for abatements but also for supplements, and both have been made in the course of this year. These arrangements, which were introduced in 1964 in agreement with the Farmers' Unions, have generally worked satisfactorily. Having regard, however, to the exceptional fall in market prices this autumn, my right hon. Friend has already announced that producers who marketed cattle in this period will receive preferential treatment in the distribution of the end-of-year payment that we expect.