CLAUSE 2.—(Extension of period, and increase of amount, of Exchequer payments in connection with schemes for increasing the demand for milk.) (Hansard, 12 July 1938)

§ Mr. Leonard

There is a point on which I should like a little information. The explanatory Memorandum is rather more explanatory than these Memoranda usually are. We are informed that the Act of 1934 permitted the Government to direct certain moneys towards the Milk Marketing Board for the purpose of popularising milk and increasing the demand for it, and that there was a limitation of £2,000,000. The Measure now before us is to extend the period during which such sums can be directed to the board, and there is a provision made for increasing the amount, with a restriction to £750,000. I would direct the attention of the Committee to the fifth annual general meeting of the registered producers, of which meeting I have the report here. I notice in the balance-sheet at the end of the report three items which are rather interesting. I see that the producers have put to their contract emergency 1191 reserve the sum of £153,387, to capital reserve account £338,156, and to general reserve no less than £852,991; so that in the reserve accounts of the English Milk Marketing Board alone—I have no knowledge of the balance-sheet of the Scottish Board—there is a reserve of £1,344,534. I am wondering whether, in view of that fact, the Minister is content to ask the House to grant more money to the board. Is he satisfied that it is necessary to give this money and should it not be used for popularising the further consumption of milk?

§ Mr. W. S. Morrison

The accounts of the Milk Marketing Board showing the balances to which the hon. Member has drawn attention are the concern of the producers themselves. If it were alleged that the board were keeping too much in reserve and distributing too little, that would be a matter between the board on the one hand and the producers, who are their constituents, on the other. The Clause deals, not with something which is purely a matter of interest to the producers of milk, but with certain schemes which are described as methods for increasing the demand for, and popularising the consumption of, milk, the best known of which are the milk-in-schools scheme and the scheme which was adumbrated in order to provide milk for nursing and expectant mothers and for children under school age. The whole community is interested in these matters, apart from the demand for milk, and they are matters in which the Milk Marketing Board should be assisted. The producers of milk should not be asked to bear the whole cost of these social services themselves, but should be assisted by Exchequer grants in order to make the schemes possible.

The Clause merely extends for another year the annual provision of £500,000, and adds another £250,000, because we are extending the schemes. We hope to extend them in the coming year to mothers and children and also to make certain improvements in the distribution of milk in schools. I do not think that the hon. Member can object to producers of milk putting their own money to reserve. The amount which is held in reserve may seem large when it is considered apart from the turnover which it represents, but the hon. Member should 1192 remember that the Milk Marketing Board handle a turnover of from £50,000,000 to £60,000,000 a year, and no adequate criticism can be passed as to the prudence or otherwise of holding £1,000,000 in reserve without taking that into account. The Clause deals with Exchequer money for the beneficiaries of the scheme. It is a matter for which the community has some responsibility and is not one to be shouldered altogether by the producers of milk in this country.