§ Sir John FarrTo ask the Minister of Agriculture, Fisheries and Food what has been the effect on the cost of beef in the shops of the underspending by £54 million in 1988 on beef support to producers.
§ Mr. Donald ThompsonThe cost of beef in the shops depends on a range of factors including supplies of beef 295W and other competing meats, and consumer demand and preferences. Consumers are already benefiting from the fact that the new beef support arrangements include a much reduced role for intervention thereby leaving greater supplies on the market for consumers. Moreover, the estimated change in expenditure on variable premium and special premium payments to producers between 1988/89 and 1989/90 would be only one of the elements affecting the beef market: in addition to those already noted payments to producers in the coming year will also reflect the 42 per cent. increase in the suckler cow premium which was recently announced.