HC Deb 12 July 1938 vol 338 cc1188-90

Motion made, and Question proposed, "That the Clause stand part of the Bill."

7.8 p.m.

Mr. T. Williams

I wish to ask a question appertaining to the recent increase in the price of liquid milk. Because of the absence of rain for a very short time grass was not growing at the normal rate and the cost of producing feeding stuffs increased. Application was, therefore, made by the Milk Marketing Board for an increase in the price of liquid milk, and the arbitrator awarded them 4d. a gallon for the month of July. That lifted it to the highest price for very many years. Distributors of milk in many cases have been making fairly nice profits out of their part of the bargain, and it was felt by a large number of people, in view of the very high cost of milk, that the distributors should bear some part of the increased price of 2S. 4d. It has been brought to my notice this very day from letters received that certain milk retailers would have been happy to bear a share of the increase and, instead of charging 7d. a quart, they would have continued to charge 6d. during July. They are in fear and trembling that they may lose many of their customers during this month and, when they are lost, it is always most difficult to get them back. Apparently the milk distributors have taken a decision on these lines, that only in an area where an absolutely unanimous decision has been taken by distributors can they sell their milk at less than 7d. a quart. Therefore a person who would be willing to sell at 6d. is obliged to charge 7d., although 6d. would be a paying proposition.

The House has not been ungenerous to the Milk Marketing Board nor to the distributors, because to the extent that it has subsidised production at all it has indirectly tended also to subsidise distribution. One would have thought that in the very extraordinary circumstances of July the Ministry might have consulted with the Milk Marketing Board and with the large and small distributors and invited them not to impose this extra burden on consumers if the retailers could find it possible during this single month to carry on without imposing it. The biggest problem of the milk industry is its inability to sell the maximum quantity of liquid milk. To the extent that they fail to sell it they have to sell it to the factories at 6d. or 7d. a gallon. I think in any case they are doing themselves a bit of no good in imposing this further burden upon consumers when there are millions who are unable to buy the appropriate quantities at 2s. and 3s. a gallon. Although grass refused to grow at the normal rate during the drought period of May and June, the nourishment must have remained in the soil and, now that the rains have arrived, It will be available in July, August and onward, and I am wondering if at some future period, instead of increasing the price from 2S. to 2s. 4d., when dairy cattle are being fed for little or nothing at all, milk will come down from 2s. to is. 8d. I hope the right hon. Gentleman will tell us whether or not he made representations in any way to the Milk Marketing Board and to general distributors to avoid this further imposition upon the poorest section of consumers.

7.14 P.m.

The Minister of Agriculture (Mr. W. S. Morrison)

The question the hon. Member has raised is somewhat novel to me because, as he said, the facts on which he founded his question were only brought to his notice to-day. The matter to which he refers arises out of a term of the contract between the Milk Marketing Board, representing producers, and the Central Milk Distributive Committee; representing the purchasers, whereby it was agreed between both parties that the price might be varied when special circumstances arose which seriously affected the cost of production. This drought which the hon. Gentleman dismissed very lightly had the effect, the producers claim, of increasing the cost of production because they had to supplement the normal summer ration of cows by purchasing imported foodstuffs. Though, as the hon. Gentleman says, the nourishment may be in the ground, the farmer's problem is to get the nourishment from the ground to the cow, through the usual channels. In these special circumstances there was, under the contract agreed upon by both sides, a procedure which is not within my scope at all and which arises out of stipulations entered into between the Milk Marketing Board and the buyers, represented by the committee I have mentioned.

As I have said, the question of which the hon. Member gave me notice is novel to me. I am as anxious as anyone can be to secure that milk shall be abundant and cheap to as many of our people as possible, consistent with a proper remuneration to the man who undertakes the labour and the risk, and I will undertake to examine the matter and to see whether there is anything which I can do. No doubt the hon. Member will remember that the problem of distribution, which is very important, is not provided for in this Measure and that there are proposals which we hope to bring before this House next Session. In the meantime I will examine the hon. Gentleman's suggestions further and see whether I can do anything.

Question, "That the Clause stand part of the Bill," put, and agreed to.