I warmly welcome this chance to open the Royal Agricultural Show, probably the finest display of livestock, produce, farm machinery and technical expertise that could be found anywhere in the world.
In doing so, I wish to pay my tribute to the remarkable contribution which British agriculture has made to our prosperity over many years.
If only the whole of industry had performed as well as agriculture, the economy of this country would have been transformed. You now produce 64 per cent more than you did twenty years ago; a performance that is twice as good as that of our manufacturing industries; labour productivity has increased by over 150 per cent—virtually three times the increase in productivity generally. The benefits have been passed on to the consumer because, as you well know, food prices have gone up much less than retail prices as a whole. I stress this point, because it is contrary to the general belief.
What are the reasons for this remarkable achievement? Apart from the fact that farmers know their job and work all the hours that God gives? First, farming is free from strikes, restrictive practices, and bad labour relations. Second, it is an industry noted for high investment, innovation, and willingness to apply the latest technology. Third, the relationship between Government and the industry is, I believe, about right, whilst we are trying to cut bureaucracy, nevertheless we keep in close touch, particularly when we are negotiating in the EEC, where so many of the decisions which affect the future of our farming industry are taken.
In paying this tribute to British agriculture I am not being complacent—nor will you be. There is still plenty to be done. We can raise production still further, for example by improving our basic resource of grassland, or by better animal and plant breeding, or by applying the best management techniques. [end p1]
I want to say a special word about the agricultural machinery industry. I know that one of the effects of the recession has been a decline in sales and a difficult time for the industry. But I am encouraged to see that, nevertheless, it is developing new products, and is ready to take advantage of the revival of demand that an expanding agriculture will bring. I would like particularly to congratulate, Mr. President, the winners of your awards for development and innovation. They are showing—in the most telling way—how new markets can still be won by enterprise and invention.
I am glad that the Government has been able to help in this area with prototype testing facilities, by grants towards the development of new products, and by financing scholarships to improve basic skills. The agricultural engineering industry is an important sector of our economy. I hope that it, too, will profit from the recent encouraging increase in engineering orders reported for the first quarter of this year. I hope it will use to the full the opportunities for export offered by a lower exchange rate; and I hope to see it develop further on the basis of a reviving demand from British agriculture.
There is also scope for improving the marketing of our produce, both at home and abroad. Twenty five years ago, our farmers provided only 60 per cent of the foods we need which can be produced here; today the figure is 75 per cent. This improvement alone is now saving some £1¼ billion per year on our food import bill. But there are still many foreign imports which we can replace. Be it dairy products, bacon, meat or fruit, the British product has a great opportunity to win a bigger share of the domestic market providing we can achieve quality control and marketing techniques as good as any in the world. [end p2]
We also have an immense opportunity in exports. Having been a food importing country by tradition, (unlike most of the countries of the European Community), we still have quite a lot to learn about how to make the best of our export potential. Over the last ten years, our food exports have grown from £250 million to over £2 billion—a tremendous advance for a country, as I have said, traditionally considered a food importer. Indeed, we are now exporting Brussels sprouts to Brussels, bulbs to Holland, spaghetti to Italy, and sausages to Germany. That just shows what can be done with real drive and good products; but there is no doubt that the scope for enhancing the performance of British agriculture in the area of improved marketing is a challenge which we must vigorously pursue.
For the manufacturing as well as the food and drink industries the European Community provides our closest and biggest markets. We are exploiting them; but we are entitled to ask that Community trade is conducted on a basis of fair competition. If after that we could not compete, then we should have only ourselves to blame. I was glad to see that in its recent report on Community policies and the Budget, the Commission recommended that stricter control of national aids should be one of the factors in a new approach to the Common Agricultural Policy. Beginning of section checked against BBC Radio News Report 1800 6 July 1981
As Members of the Community, we accept the principles of that Policy. Indeed one of them is to provide reasonable incomes for the farming industry. But it makes no sense for such a large proportion of the Community's Budget to be spent building up surpluses which can only be disposed of in costly or controversial ways. I believe the farming industry of this country will support the Government in looking for changes in the CAP which are sensible and fair. End of section checked against BBC Radio News Report 1800 6 July 1981
The links between the producer and the consumer are nowhere more sensitive than when it comes to food. But another relationship is equally important—that between town and country. A great Show like this brings these two worlds together. We who live in the towns welcome the chance to enjoy the countryside. You who maintain it in good heart are doing us a service. Farmers and landowners between them are the custodians of the [end p3] countryside. It is their knowledge and skill that maintains the system of good husbandry of which we are all beneficiaries. They believe that efficient farming can be combined with sympathy for wildlife conservation. And on that basis we rely on them to protect our rural heritage for present and future generations.
There has been a lively debate in Parliament on the Wildlife and Countryside Bill. Whatever success we may achieve in conserving wildlife will depend upon the goodwill of the farming and landowning community. I have no doubt that the goodwill is there, and that it will be used to the benefit of all the people. For whether we come from town or country, our roots lie not in cement, but in the soil.
Mr. President, I have nothing but praise for the performance of the agricultural and food industries. It gives me great pleasure to come here to say so and to pay tribute to the standards of excellence represented by The Royal Show which I am now delighted and proud to declare open.