HC Deb 19 March 1971 vol 813 cc427-8W
Mr. Deakins

asked the Minister of Agriculture, Fisheries and Food what is his estimate of the extra resources that will be available to the United Kingdom farmers for expansion in 1971–72 as a result of the 1971 Annual Review.

Mr. Anthony Stodart

A precise estimate cannot be given but the conventional assessment of the increase of £138 million in the value of the guarantees gives a broad indication of extra resources available to farmers in a full year.

It would not be possible to estimate what proportion of the increase of £138 million in the value of the guarantees will be devoted to expansion.

Mr. Deakins

asked the Minister of Agriculture, Fisheries and Food what is his estimate of the extra costs which will have to be taken into account in the 1972 Annual Review as a result of the determinations in the 1971 Annual Review and the import levies announced on 17th March.

Mr. Anthony Stodart

It would not be reasonable to make such an estimate.

Mr. Scott-Hopkins

asked the Minister of Agriculture, Fisheries and Food how much of the £138 million increase in the value of the agricultural guarantees he announced on 17th March he now estimates will fall on consumers and on taxpayers, respectively.

Mr. Prior

I am glad to have this opportunity to clarify the situation as there may be some confusion arising from the exchanges following my statement on 17th March when the implication arose that only £47 million out of £138 million would fall on the Exchequer and the re-remainder on the consumer.

The figure of £47 million represents the Exchequer cost apart from the increase announced last October. I made clear in reply to a supplementary from my hon. and gallant Friend the Member for the Isle of Ely (Sir H. Legge-Bourke) that the proportion was approximately half and half. The position is that in a full year the net Exchequer liability (excluding the effect of the rise in the middle band for pigs which is equivalent to £3½ million) will be about £74 million. The remainder amounting to £60½ million represents the consumer liability primarily on milk but with a small amount on sugar and a small potential cost on potatoes. As I said in the case of milk the retail price to the consumer will need to be raised by ½p from 1st July.