HC Deb 06 February 1978 vol 943 cc457-8W
Mr. Robert Hughes

asked the Minister of Agriculture, Fisheries and Food what steps he is taking to alleviate the difficulties of the potato processing industry.

Mr. Strang

As a result of market conditions during the current season, potato processors have found themselves in difficulties and have cut back their operations; these difficulties will be exacerbated as farmgate prices rise in response to the current market support programme undertaken by the Potato Marketing Board, with Exchequer assistance.

Eurostat Report "Earnings in Agriculture 1975" which is available in the Library of the House. This shows that average hourly earnings of all full-time regular employees on the date shown were as follows:

AVERAGE HOURLY EARNING OF ALL FULL-TIME REGULAR EMPLOYEES: AUTUMN 1975
Month of survey Pence European Units of Account (E.U.A.)
Denmark October 167 2.90
Netherlands October 160 2.77
West Germany September 129 2.30
Belgium October 131 2.29
France October 98 1.71
United Kingdom October 91 1.58
Italy September 80 1.43
Irish Republic November 73 1.27
Luxembourg September 61 1.08

The data have been converted from national currencies into sterling and into EUA at the exchange rates prevailing during the month of survey. Care is needed in interpreting these figures because of differences in the level of national prices and fluctuations in exchange rates.

The current prescribed minimum rates for whole-time adult workers aged 20 years and over in the United Kingdom are as follows:

Because the processing industry is an important outlet for home-produced potatoes, the Government are anxious to ensure that no lasting damage is done by a temporary change in circumstances. They have, therefore obtained the agreement of the Potato Marketing Board to make available for processing quantities of potatoes taken off the market under the support buying programme. I am hopeful that this temporary arrangement, lasting from now until mid-June, and so fully covering the normal processing season, will offer processors the opportunity to maintain at least their present production levels and thus avoid further redundancies in the industry.