§ 64. Mr. Lipsonasked the Minister of Food whether he can give an assurance that the increase in the guaranteed price of milk announced to be paid to producers will not mean an increase in the price of liquid milk to consumers?
§ Mr. Lennox-BoydPart of the cost of the increase in returns guaranteed to producers will be obtained from increasing the price of milk used for manufacturing purposes. It will also be necessary to increase the retail price of liquid 1988 milk at some date in the summer, but until a closer estimate can be made of the revenue likely to be obtained from the increased prices of manufacturing milk and of the total liabilities to be met, it is impossible to indicate the date on which an increase in liquid milk prices will be necessary.
§ Mr. LipsonWill my hon. Friend bear in mind that the present price of milk makes it impossible for many people who need it to buy as much as they want to have? Will he reconsider the matter before taking any action that will reduce consumption?
§ Mr. J. MorganMay we take it that the Chancellor's undertaking to keep down milk prices has been withdrawn?
§ Mr. T. WilliamsMay I ask whether the contemplated increase is in the neighbourhood of 4d. per gallon, and, if so, is it not the case that such an increase will obviously prevent tens of thousands of families from purchasing their normal requirements of milk, and that this will ultimately re-act to the detriment of the farmers, unless the Treasury step in and do their job?
§ Mr. Lennox-BoydI appreciate the effect of prices upon consumption, but I think the hon. Member had better wait until my right hon. Friend makes a full statement on the increase next month.
§ Mr. StokesIs there any reason why the whole increase should not be put on the price of manufactured milk?