The first clause of the Agriculture and Horticulture Dill, which received its second readiw in the Commons mid-December will bring to an end the policy of the free importation of basic agricultural products - this policy has been in existence for over 100 years, The deficiency payments system is now deemed to be becoming too “expensive" for the Hxchequer,e The Minister of Agriculture now intends to keep these pay ments within bounds by balancing the amounts produced in Britein against the amounts and prices of food imported from abroad.
Already internal deficiency payments for grain have been kept down by asking foreign producers to charge more, Under the Dill, the Minister would be able to set minimum prices for imports, and to. charge a levy on all imports coming in at a cheaper price. This system would have the effect of shifting the deficiency payments away from general taxation on to an indirect tax levied discriminatoly on the most skilful importerse .
As well as the desire to keep down deficiency paynonts: (the subs=. idy the Government pays farmers to protect them from low market prices) the new system is intended to make it easier for Britain to negotiate . ~~ with the Common Market. Dut the price threatons to be that of higher .food costs; for instance under the Dill importers who find cheap grain for Dritish bread or cheap barley for fecding British cattle would ‘be fined for their pains!
1964 is election year and the agricultural vote is essential for the Tories if they are to have any prospect of victory. The farmors would react immediately to a policy which cut their income; the rest of the population would find out after the election that Tory pcelicy meant higher food prices, Ed. notes based on material in Economist article.