Food Prices

Oral Answers to Questions — Agriculture, Fisheries and Food – in the House of Commons at 12:00 am on 15 April 1970.

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Photo of Sir Gerald Nabarro Sir Gerald Nabarro , Worcestershire South 12:00, 15 April 1970

asked the Minister of Agriculture, Fisheries and Food by how much the price of all food sold by retail in Great Britain during the 15 months ended 31st March, 1970, or the latest convenient period, increased in aggregate, expressed in £ sterling, and what part of such increase, in £ sterling and ad valorem, he attributes to higher review commodity prices to British farmers in the period stated.

Photo of Mr Cledwyn Hughes Mr Cledwyn Hughes , Anglesey

Between 1968 and 1969 household expenditure on food in the United Kingdom increased by nearly £315 million. This was partly attributable to increased prices and partly to increased population, changes in the level of purchases and changes in quality. No figures are available which would enable me to estimate what part of this increase is attributable to higher prices for review commodities.

Photo of Sir Gerald Nabarro Sir Gerald Nabarro , Worcestershire South

Has not the right hon. Gentleman perceived that in recent months the retail price of food has been rising faster than ever before and, measured over 12 months, pro rata, is now rising at a rate three times as great as the Chancellor's tax reliefs yesterday? As Minister of Agriculture, Fisheries and Food, what will he do about this rip-roaring inflation in food prices?

Photo of Mr Cledwyn Hughes Mr Cledwyn Hughes , Anglesey

The hon. Member must not use exaggerated language of that kind.

Photo of Mr Cledwyn Hughes Mr Cledwyn Hughes , Anglesey

There is no rip-roaring inflation, as the hon. Member suggests. I agree that there have been increases but, on the whole, through our early warning system and constant watch system we have maintained food prices at a relatively stable level. Principal causes of the increase have been the higher costs of raw materials and wages. The important thing to bear in mind is that whereas expenditure on food increased by 5·5 per cent. last year, earnings increased by 8·6 per cent.

Photo of Mr Joe Ashton Mr Joe Ashton , Bassetlaw

Has my right hon. Friend any figures showing what the effect would be if food subsidies were abolished, as the Tory Party, after the Selsdon Park conference, indicated would be its policy?

Photo of Mr Cledwyn Hughes Mr Cledwyn Hughes , Anglesey

We are aware that there would then be a substantial increase over and above the normal increase.

Photo of Mr Joseph Godber Mr Joseph Godber , Grantham

Does the Minister consider that the normal increase, as he calls it, that has arisen under his Government would continue under a Conservative Government? Of course it would not. Does he admit that the increased cost of food over the last 12 months to the last available date is over 7 per cent.? If he does not call that rip-roaring inflation, what figure does he need before he calls it that?

Photo of Mr Cledwyn Hughes Mr Cledwyn Hughes , Anglesey

The increase last year was 5·5 per cent. As for the first part of the question, the right hon. Gentleman's confidence in his party's policy is far greater than that of the country at large.

Photo of Sir Gerald Nabarro Sir Gerald Nabarro , Worcestershire South

On a point of order, Mr. Speaker. In view of that very unsatisfactory reply, I beg to give notice that I shall raise this matter on the Adjournment.

Photo of Mr Kenneth Lewis Mr Kenneth Lewis , Rutland and Stamford

asked the Minister of Agriculture, Fisheries and Food what were the main increases in food prices during 1969 and to date in 1970.

Photo of Mr James Hoy Mr James Hoy , Edinburgh Leith

The most significant food price increases during 1969 were in meat, potatoes, other fresh vegetables, milk, fish and bread. So far in 1970 the most significant increases have been in tomatoes, bread, potatoes, and other fresh vegetables.

Photo of Mr Kenneth Lewis Mr Kenneth Lewis , Rutland and Stamford

Does the hon. Gentleman realise that as the housewife's food bill goes up, so the farmers' income seems to come down? Is this not a clear indication of the need for a system providing increased farm incomes and support?

Photo of Mr James Hoy Mr James Hoy , Edinburgh Leith

The hon. Gentleman had better make up his mind which way he wants to go. The complaint is always that the producers are not getting enough for the goods. These are the things which have gone up, together with the wages of those employed.