§ Mr. Joplingasked the Minister of Agriculture, Fisheries and Food (1) what estimate he has made of the cost to the Exchequer of producing 160,000 extra tons of beef during the year 1967–68 at the average rate of subsidy paid;
(2) what estimate he has made of the cost to the Exchequer of producing 135,000 extra tons of pork during the year 1967–68 at average rates of subsidy paid;
(3) what estimate he has made of the cost to the Exchequer of producing an extra 170,000 tons of bacon during the year 1967–68 at average rates of subsidy paid;
(4) what estimate he has made of the cost to the Exchequer of producing an extra 3½ million tons of cereals during the year 1967–68 at average rates of subsidy paid.
§ Mr. HoyThe average rates of deficiency payment during the fatstock year 1967–68 for cattle and pigs were 5.3569d. per 1b. deadweight and 3s. 0.757d. per 91W score deadweight respectively. In addition there was an average payment of 35s. per cwt. for bacon under the bacon stabilisation arrangements. The average rates of subsidy for cereals payable for the year ended 30th June, 1968 are expected, on the basis of the returns at present available, to be of the order of 4s. 5d. per cwt. for wheat, 3s. 6d. per cwt. for barley and 7s. l1d. per cwt. for oats.
To apply these rates to the additional quantities of beef, pork, bacon and cereals stipulated would give no meaningful indication of the cost to public funds of producing them. This is because the calculation would take no account of the effect of the extra supplies on market prices, nor of the additional incentives which might have been necessary to obtain the extra output.