§ Sir Peter Millsasked the Minister of Agriculture, Fisheries and Food whether he has determined the market prices for potatoes to apply in Great Britain and Northern Ireland for the 1985–86 crop year beginning on 1 July 1985.
§ Mr. MacGregorFollowing consultations with the farmers' unions I have decided to authorise the Potato Marketing Board, under the new market support arrangements to apply in 1985–86, to enter into contracts with producers to purchase up to 420 thousand tonnes of potatoes over the months November 1985 to May 1986 at a scale of prices not to exceed an average of £53 per tonne. This represents an increase of £2 per tonne over the average contract price in 1984–85. I have also agreed that the board can additionally intervene directly in the market throughout the season where this will ensure support more cheaply than purchases under contract, provided that the total intervention does not exceed 500 thousand tonnes. The target area for potato planting in Great Britain, another important factor in market stability, was of course fixed last July at 161 thousand hectares.
The maximum target price for Northern Ireland, under the arrangements agreed with the Ulster Farmers Union last autumn, will also be increased by £2 to £46 per tonne. The target area for Northern Ireland plantings is 13,000 hectares and the ceiling for any support operations is 60,000 tonnes.
This price determination must not be taken to indicate that producers can look forward to regular increases in support prices. Support prices must be set in relation to market conditions and with regard to the cost of market support operations to the Government and the Potato Marketing Board.
This decision marks the completion of the package of changes to the system of potato market support which were recently approved by Parliament. The objectives are to ensure an element of stability for the potato market in order to retain producer confidence in the crop and to give consumers some assurance of supply at reasonable prices, while transferring to producers a greater share of responsibility for the cost of market support.