Orders of the Day — Agriculture

Part of the debate – in the House of Commons at 12:00 am on 25 November 1974.

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Photo of Mr Francis Pym Mr Francis Pym , Cambridgeshire 12:00, 25 November 1974

Yes. The right hon. Gentleman's latest round takes us no further than a few months hence—to February—whereas the crying need is for a longterm strategy that will carry the industry well forward into the future.

I turn now to the poultry industry and to glasshouses, because there is great concern in both sectors.

The poultry industry cannot escape the devastating increases in feed costs. As these costs represent over 75 per cent. of the cost of production, poultry farmers have been hit much harder than other livestock producers. Egg prices have certainly firmed recently, but poultry meat production is still unprofitable and producers are losing money.

The effect of the massive rise in cereals on the transitional arrangements means that the United Kingdom market is now open increasingly to unfair competition from Europe since imports have the advantage of national subsidies and monetary compensatory amounts which are not available to our home industry. Will the Minister assure the House that he will review this as a matter of urgency and in the context of the full Community review? Poultrymen feel that they are being forced to compete on an unfair basis not only with Europe but vis-à-vis other meat producers, and that undermines their confidence.

On glasshouses, I want to press the Government about the oil subsidy. This subsidy, for which we asked and welcomed, saved the industry, which depends so heavily on oil. But nothing has yet been settled on what will happen after 1st January. I cannot believe that the Government intend to abandon this industry, especially in view of the enormous extra investment put into it in recent years. But it cannot continue and use that investment unless some aid is given towards its energy costs, which are such a high proportion of the total costs.

Since the summer we have been repeatedly asking the Government to state their intentions on this matter, and I hope that we shall hear them today, perilously late though it is. I have been making my own inquiries in Brussels. I have the clear impression that, so far as the Commission is concerned, there is likely to be no objection whatever to the subsidy continuing until June. Will the right hon. Gentleman announce that now, and then work out a longer-term scheme with the industry?

In the unsettled circumstances of agriculture today we face shortages of certain foods. That is a matter that the House cannot take lightly. I have on earlier occasions said that a meat shortage is inevitable. It will happen with pig meat first. The market surveys, published by the Meat and Livestock Commission, show the scale of the prospective fall—probably about 1 million fewer pigs available for slaughter in the first half of 1975. The Meat Manufacturing Association has also warned of the shortage next year and in 1976, and a shortage means higher prices. This is why the disaster on our livestock farms this year will mean dissatisfaction for the consumer next year and in 1976.

The interests of producers and consumers are the same—a steady supply at stable prices. But under this Government that is the opposite of what is happening. The customers and consumers in the shops are not aware of it yet, but they will be soon enough.

There are other shortages. Already there is a shortage of milk for manufacture. Practically no butter is being made in the United Kingdom, and cheese production will fall far short of potential, which means more imports.

The scarcity of sugar has existed for months, and the worrying aspect has been the tardiness of the Government in securing future supplies.