Q
Northern Ireland … .
PM
I have already given it twice on television today, and Mr. Whitelaw will make a statement about it in the House this afternoon. We are obviously very concerned indeed at what took place. Particularly concerned, of course, about what the police had to put up with, and naturally we're anxious to do everything we can.
Q
inaudible
PM
I wouldn't be quite as pessimistic is that. We first have to try to find out what the troubles were—the cause of the trouble—but also we have to consider very much everything we can do to protect the police and see that they have everything that they need. I have given you an interview this morning. I haven't seen in full Mr. Whitelaw 's statement. You would not expect me to comment on Mr. Whitelaw's statement. Mr. Whitelaw's statement is of course the policy of the Government. He is anxious to do everything to protect the police, and so am I, and so I believe is everyone in the United Kingdom so that they can carry out their duties properly and efficiently, and with the maximum protection which they can possibly have.
Q
When you were Minister of Education you stopped free school milk. Now we hear that there is going to be cheaper school milk—4p I think for a third of a pint. Is this a U-turn?
PM
When I was Minister of Education we had free school milk for children from the age of five to seven—all children from five to seven, and all children from seven to eleven who had a medical need for it. All of those got free school milk. Now I think that the arrangements were changed with the possibility of getting a subsidy from the EEC for school milk. That was changed before 1980—I think it was about 1977/78—so the arrangements were changed completely. A change from financing from local education authorities to financing through the EEC, the local education authority wishes to take it up. [end p1]
Q
Milk producers who are I believe rather concerned.
PM
Well I'm sure milk producers wish to sell as much milk as they possibly can.
Q
Turkey producers or egg producers.
PM
On the whole, we did not have that subsidised in schools.
Q
Is it not time that we started playing a little dirty as well?
PM
I do notice that liquid milk does not come into Britain from the Community.
Q
Turkeys do, eggs do.
PM
Yes indeed, but as you know, we likewise give a subsidy to our horticultural industry.
Q
They say it's not enough.
PM
Of course they will say it's not enough, but we too gave a subsidy to that industry, and of course we too, in fact agricultural and horticultural here gave very considerable help to the fishing industry because of the trouble they've been in. Help which I think matches up in every way to that given on the continent.
Q
What response have you been getting from machinery manufacturers, what sort of atmosphere have you been getting during your walk round the show?
PM
I don't know quite what answer you want me to give, but I'll tell you the truthful answer—excellent. First, I think a number of them have new equipment, new machinery. One to which we went had indeed sold out all of his new equipment—he showed me something for supplying the depth of topsoil to enable him to have winter wheat planting. He's only made 250. He's sold them all, and hopes next year to be making a thousand of them. Quite a big export, I gathered from those whom I visited in agricultural machinery. Very good too, and I hope they'll take advantage of the change in the exchange rate to have a sales drive. But for a number of [end p2] them let's be candid—exports have filled our production which is not being filled from the home market.
Q
Inaudible
PM
Once you go to preferential credit everyone wants it. In fact our interest rates now are among the lowest in Europe. This is very welcome to the farming industry.
Q
Would you consider disbanding the national parks?
PM
Not at the moment, and I should be in very great trouble if I gave any answer other than that.
Q
Your Government's Housing Bill 1980 has been a great help to bringing in lettings on surplus agricultural cottages. On my farm there are three we've let this year to young couples who will be in for five years. Can you go a step further now in helping the ladder of young people to get tenancies of land in agriculture on the same principle for a period of years of five or ten years? Because at the moment we are becoming an aging industry with no opportunity for young people to enter.
PM
We do not have any legislation prepared for that.
Q
Farming income has been declining over the years in real terms. Do you see any way out of this?
PM
It was a pretty good price settlement, I would have thought, this year, and the decline of that was taken into account. But of course there are other industries during a world recession where farming income has also declined. As you know, in the farming industry itself it's really very much according to the kind of farming you do. Arable farming has kept up fairly well. The people who have been in particular difficulty are those who have been grass land. And we have indeed tried to help them with the price settlement and also of course for the subsidies given to hill farmers. [end p3]
Q
You yourself have been this morning mentioning about certain … . and involving [sic: reforming?] the CAP. Well, involving the CAP to many farmers in this country really means taking away some of the resources and some of the income they're achieving at the moment. Following on from that last question, don't you think this would then be detrimental in time of falling profits to start taking away money?
PM
No, because your premise was not correct. 70%; of the Community Budget really goes towards surpluses. We do not contribute to the surpluses as you know, and therefore our first objective is to try to get that the amount of surplus down so that it does not absorb as much either of the agricultural budget or the total budget.
Q
We in this country would not be hurt if we didn't produce surpluses?
PM
We're not producing surpluses. A certain amount of butter, not very much. And indeed, as you know, in this country we're just not self-sufficient in a number of things, and we still import quite a bit. But the vast majority, both FEOGA expenditure and the whole of the European Budget expenditure, goes towards surpluses, and as you know, a very large proportion of that goes to subsidies to selling those surpluses under very controversial circumstances indeed. And under circumstances which can undermine the agricultural economies of a number of other countries because we're selling in markets which they have been selling in, and we've sometimes been selling at a subsidised price.
Q
Our surpluses are part of Europe's surpluses.
PM
You still are trying to say something which I didn't. We do not in this country produce very much of the surplus. As you know.
Q
Do you think the surplus countries in Europe, like France and Germany, should nationally take the responsibility for their surpluses? [end p4]
PM
I think there are two things. I think maybe the system of intervention is not necessarily a bad system. It depends upon the price level at which it is fixed, and that is one point. Secondly, of course there may come a point when one says that the country should in fact take certainly some of its own national surpluses. But after all part of the restructuring of the Budget is dependent on restructuring of the Common Agricultural Policy, and that is just the matter which is before the Community now. And none of us can say we shall have this or that. It all has to be negotiated between us. But there are the two factors. One is not the system, but the price. And the other is whether you actually change the structure.
Q
Do you expect to get your rebate continued after 1982?
PM
Oh, indeed yes. But there might be a much more fundamental restructuring of the budget altogether. I think it's very bad to have two main contributors to the Common Market, one very much bigger than the other. And I myself think it's inequitable that Germany do such a large proportion of the financing with we second, and I would say that that is unacceptable in the long run for Germany, and as a partner in the Community, I don't believe that we should have unacceptable situations. I think we should have an equitable and fair arrangement for financing between the partners.
Q
Inaudible
PM
In order to try to keep down the surplus I agree of the whole of Europe because as you know the CAP is indeed a Common Market Agricultural Policy in Europe. … . (interruption) … . and of course I'd far rather prefer not to have co-responsibility levy system. Far rather. These things have to be negotiated in Europe. It always seems to me absurd to put up the price by X%; and then to take it down by a co-responsibility levy. Put it up net by say 4%;, it'd be absurd to put it up to 6%;, an extra co-responsibility levy of 2%;. As you know, Peter Walker is always … for the distribution of the co-responsibility levy, and that it should not give our farmers, who happen to be the largest dairy farms on the whole less than farms in Europe. In the end we have to negotiate these things. That's what being part of the Common Market means. [end p5] We should of course have to spend very considerable funds on deficiency payment systems in this country, unless we also had gone separately to a levy system.
Q
How you see life in the countryside ten years from now?
PM
I don't take out my crystal ball, but I'm a great believer in the strength of the rural heritage, and I myself do try to protect village schools. There comes a time when they get so small: the children don't necessarily get the best education but I do believe myself very much—I think you're taking a very pessimistic view. That might be your profession. My profession is that of an optimist.
Q
You're not very happy over the Budget plan … . much longer to restructure the Budget, what is your message to those farmers generally who say that we should pull out of the Common Market?
PM
I think it would be catastrophic for this country to pull out of the Common Market, and I do not find farmers advocating that in any way.
Q
Is it possible for you to give to the Press your impressions of the Royal Show.
PM
I've had a wonderful day at the Royal Show. I am very happy with the farming industry, and delighted with what we've seen, whether it's been in livestock, whether it's been in agriculture or machinery, in the voluntary side, conservation, research. It seems to me the Show is a wonderful organisation. I'm very happy to pay tribute to its standards of excellence, and for the marvellous programme people have arranged for me today. I wish I could go everywhere to every industry and be as happy as I am with this one.