§ Mr. Blakerasked the Minister of Agriculture, Fisheries and Food (1) on what assumptions about the future price of fuel oil he has based his proposed subsidies for horticultural growers;
(2) what plans he has for discussions with the National Farmers' Union about the need for a subsidy on fuel oil for horticulturists in the glasshouse sector after the end of 1974;
(3) what consideration he gave to a different rate of subsidy for gas oil than for other heating oils used by glasshouse growers; and why he decided against such a different rate;
(4) why the rate of subsidy for fuel oil for horticultural growers is to be 4p per gallon for the second half of the year as opposed to 6p per gallon for the first half.
§ Mr. MoyleIt has been implicitly assumed that there will be no significant fall in oil prices before the end of the year. The subsidy is designed to assist growers to adapt to the circumstances arising from the recent increases in fuel oil prices and for this reason has been set at a reducing rate to finish on 31st December 1974. We have no plans to discuss an extension beyond this date. The subsidy is intended to offset part of the increases in oil prices since September 1973 and these increases were about the same for all types of heating oil.
§ Mr. Blakerasked the Minister of Agriculture, Fisheries and Food whether he will list the average prices currently paid in the United Kingdom. Holland, France 554W and Germany by horticultural growers for 3500 sec oil, gas oil and natural gas, respectively, after allowing for any subsidy.
§ Mr. MoyleCurrent prices per gallon to growers in the United Kingdom—net of the repayable excise duty of 1p and the proposed subsidy, to be paid retrospectively, of 6p—are 10–11p for 3500 sec oil and 15–16p for gas oil. Growers' usage of natural gas is insignificant. Comparable figures cannot be given for France, Germany and the Netherlands because the details of their subsidies have not yet been settled.