HC Deb 12 March 1940 vol 358 cc1011-3
Mr. T. Williams (by Private Notice)

asked the Minister of Food whether he can say what arrangements are contemplated for safeguarding returns to milk producers after 1st April next, particularly with reference to the necessity of ensuring an adequate supply of milk during next winter?

Mr. W. S. Morrison

Yes, Sir. The Government have had under consideration, in consultation with representatives of the milk industry, the question of milk policy after 1st April, 1940, and I hope to be in a position to make a full statement on the subject at an early date. I am, however, able to state at once that the Government attach the greatest importance to the maintenance of an adequate supply of milk and are prepared, in order to ensure this, to safeguard producers' returns. The financial arrangements proposed to be made with the Milk Marketing Boards as from 1st April will be on the basis of a guaranteed pool price or other corresponding return to producers. For the period 1st April to 30th September this guaranteed return will be an average of 2½d. per gallon higher than the average return for the corresponding period of 1939, the increase over the return for the corresponding months of 1939 being as follows:—April, 2½d., May and June, 2¼d., July and August, 2½d., and September, 3d. These increases will apply equally to the different areas of Great Britain. They are designed, and are considered adequate, to cover increased costs of production, including the cost of wages and feeding stuffs, so far as have already occurred or are likely, on a reasonable expectation, to have occurred before 30th September, 1940.

The guaranteed return for the winter period from 1st October, 1940, to 31st March, 1941, which will be announced at a later stage, will be fixed with full regard to the Government's undertaking to agricultural producers that they will be ensured a return which will be reasonable and will enable them to pay a fair wage to the workers, and will take into account the increased costs which normally have to be incurred in the production of winter milk and any further increases not already allowed for. In addition, I have under consideration an increase in the price which is now being paid for fat cows. I am not in a position at present to make a definite statement on this, but hope to be able to do so shortly as one of a number of adjustments in fatstock prices.

Mr. Williams

May I ask the right hon. Gentleman what is the calculation of the charge on public funds for the first six months, and whether in the announcement he has just made the guaranteed increase in price has a very close relation to the known increases in the cost of production?

Mr. Morrison

In answer to the first part of the Question, no charge will fall upon public funds in relation to the guaranteed price. The funds will be reinforced by charging more for manufacturing milk. With regard to the second part of the Question, all considerations of cost have been carefully examined in arriving at this figure of 2½d.

Mr. Williams

Will the right hon. Gentleman produce a White Paper saying exactly what the increase in price for producing milk will be, and how the funds for the guaranteed prices will be obtained?

Mrs. Tate

May I ask whether the Minister is aware that an adequate supply of milk is dependent not only on price but also upon an adequate supply of feeding-stuffs?

Mr. Morrison

With regard to the Question put by the hon. Member for Don Valley (Mr. T. Williams), I doubt whether a White Paper would be the appropriate vehicle for giving the information required, but I will give that information if requested. With regard to the other Question, I am well aware of that, but grass is growing now.

Viscountess Astor

Is it not true that if the Government had had a long-term policy on agriculture, we should not have been in such a mess?