HC Deb 07 December 1970 vol 808 cc39-40W
Mr. Arthur Lewis

asked the Minister of Agriculture, Fisheries and Food whether he will publish in HANSARD the facts and figures upon which he based his statement, made on Saturday, 28th November, that the import levies which replace food subsidies in April next year will not result in any substantial rise in food prices; and whether his estimate of an increase of 2 per cent, per annum is additional to the rises which have taken place since June, 1970.

Mr. Prior

It is necessary to distinguish between the interim levy arrangements, which I announced on 27th October and the comprehensive system of import levies which is our longer term policy objective. The effect on food prices of the interim levy arrangements, which it is our intention to bring into operation after April, 1971, will depend on a number of factors, including the market prices at home and abroad of the commodities concerned at the time the schemes are introduced. But the arrangements should not in general increase prices much above present market

levels which for many commodities have, as a result of market forces, risen recently. As for a comprehensive levy system, the precise effect of this on food prices will of course depend on a number of factors, including the nature and timing of the changes decided upon. But the effect on food prices should in any event not be very great. My party's policy document "The Farming Future" estimated that the effect would be equivalent to an extra 5–6 per cent, on the cost of food, spread over 3 years; and I think this gives a fair indication of the order of increase involved.—[Vol. 805, c. 4–6.]