25. Sir J. D. REESasked the Parliamentary Secretary to the Board of Agriculture, whether he is aware that the Agricultural Organisation Society has appointed agents to visit different areas in the country and induce farmers to sign petitions to the Government to open milk factories in such areas, the inducement offered to the farmers being that by sending their milk to the towns through the agency of the factory they will be able to obtain an extra 2d. per gallon; that having obtained these petitions the Agricultural Organisation Society then asks for Government Grants towards the cost of building the factories in question, and that the Government has been giving them amounts equal to four times the sum put up by the Agricultural Organisation Society; whether he is aware that the effect of this action of the Government upon the milk supply to large towns is increasing the price of milk to the consumer by 2d. per gallon, and the milk having to be handled in the factory does not immediately reach its ultimate destination so promptly as it did under the former system when it was consigned directly by the farmer to the towns in which it was to be sold; whether he is aware that the dairy trade feels much aggrieved that this result should be brought about by the provision of money from the public purse; and if he will say when a return to the ordinary course of trade will be permitted and an end be put to the intervention of the Government which has raised the price of milk to the consumer?
Sir A. BOSCAWENThe Board have no knowledge of the petitions referred to by my hon. Friend in the first part of his question. The Board of Agriculture's scheme for the establishment of milk depots originated on the recommendation of the Committee on the production and distribution of milk over which, my hon. and gallant Friend the Parliamentary Secretary to the Local Government Board presided, and the result has been a considerable increase in the supply of milk available for the markets. The prices which the producer, the wholesale mer- 561 chant, and the retailer can obtain for milk are fixed in each ease by the Food Controller, and the existence of these depots can in no way affect the price to the consumer. The work of organising these depots was entrusted by the Board to the Agricultural Organisation Society, and in the case of four societies formed under the scheme the Board have made loans (in accordance with the recommendation of the above Committee)at 6 per cent. interest, but in no case has the loan exceeded the amount of share capital raised by the members of a society.
Sir J. D. REESDoes the hon. Gentleman acknowledge responsibility for what is being done by the Agricultural Organisation Society, either in full or in part?
Sir A. BOSCAWENWe acknowledge responsibility for their establishing these milk depots, but as I have said, this has had no effect whatever on the price, and cannot have.