Milk (Hansard, 31 March 1965)

§ 7. Mr. Kitson
asked the Minister of Agriculture, Fisheries and Food if he is satisfied that adequate encouragement is being given to milk producers to maintain an adequate supply of milk for both the liquid and manufacturing markets; and if he will make a statement.

§ Mr. Peart
Yes, Sir. Liquid needs are fully safeguarded by the standard quantity arrangements. The surplus for manufacture this year should be almost 45 percent. of liquid sales. As the dairy herd appears to be growing, and having regard to the recent increase in the guaranteed price, there is no reason to suppose supplies will not be adequate.

§ Mr. Kitson
Does not the right hon. Gentleman think that, as he was able to give only such a small increase to milk producers under this Price Review, the time has now come when he should free the price control to the Milk Marketing Board and give the Board a freer hand, because if the price goes any higher the demand will drop? Does he not think that the Milk Marketing Board ought itself to have the chance to control the price of milk?

§ Mr. Peart
I do not accept that, and, as the hon. Member knows, even my predecessor did not accept this. Apart from that, because of the increase we have given, relative to what was given on many other occasions since the scheme came into operation, the position is far more generous.

§ Mr. Monro
Is the right hon. Gentleman aware that his answer will give serious concern to Scotland where there is a steady decline in the number of producers and where, indeed, the Chairman of the Scottish Milk Marketing Board has said the situation may well become critical?

§ Mr. Peart
There has been a decline over the last 10 to 12 years, but hon. Members opposite did not protest against it. All I am saying now, and what I think is right, is that, in view of the evidence and the analysis of the situation, there is no danger of a shortage, and hon. Members must not exaggerate.

§ Sir Richard Glyn
Would the right hon. Gentleman agree that the size of the 1630 dairy herd shows signs of diminishing? Is he aware that the cost of milk production is rising so fast that many small milk producers who work extremely long hours consider that they would be better off if they sold out and invested their money in United Dairies shares which would give them more money to spend for doing no work at all?

§ Mr. Peart
I cannot accept what the hon. Member has said. Indeed, what he is saying is really irresponsible, and he knows it.

§ 10. Mr. Prior
asked the Minister of Agriculture, Fisheries and Food what is the increase in costs of milk production expressed as pence per gallon during the year 1964–65.

§ 51. Sir Richard Glyn
asked the Minister of Agriculture, Fisheries and Food by what proportion the increase in the cost of milk production during the 12 months to the latest convenient date exceeded 1d. per gallon.

§ Mr. Peart
I have nothing to add to the Answer I gave to hon. Members who raised this question on 24th March.

§ Mr. Prior
Would the right hon. Gentleman bear in mind about this Price Review that it is not just that milk prices are going up by another 1d. so much as the fact that a lot of producers now feel that, working, as they do, seven days a week and at the weekend, and long hours, and with all the troubles involved with milk production and looking after cows, it is not really worth their while being in milk any longer? As a psychological barrier is being built up, does he not think that the time really has come now for a bigger increase?

§ Mr. Peart
I accept all that the hon. Member has said about the seven-day week, but there is nothing new about this. This has happened over the years. Hon. Members opposite knew this last year, but there was no protest. The hon. Member talked about psychological factors. I agree that they are there. On the other hand, as I have said, I have given an increase and that increase, with the increase last year, means a valuable increase of 10 per cent. over two years, which is much higher than ever before. If I may just repeat the point, it means £9 million on the guaranteed price. The increase in the standard quantity means a further 2 million.

§ Mr. George Y. Mackie
Could the right hon. Gentleman say whether he expects the farmers to get the whole of this enormous increase of 1d. and that the Board will be able to pay 1d., or does he expect it to be whittled away to 0.6 of ld.?

§ Mr. Peart
It will cover the increase in costs. This has even been admitted by the Chairman of the Milk Marketing Board. I really think hon. Members should not exaggerate.

§ Sir M. Redmayne
It is not a question of exaggerating. The Minister says there is nothing new about the seven-day week in milk. That, of course, is true. What is new is that industry and the distributive trades are constantly getting better conditions than the farmers, and that is why they feel they ought to have a better reward for their work.

§ Mr. Peart
On the question of distribution in the industry, I have announced the setting up of an inquiry, and I shall make a report on this. It is a matter of obtaining a right balance. If we encourage over-production the effects on the small producer could be disastrous. The question is to have a sensible balance.

§ 28. Mr. Buchanan-Smith
asked the Minister of Agriculture, Fisheries and Food if he is satisfied with the workings of the standard quantity system in relation to the production of milk; and if he will make a statement.

§ Mr. Peart
At the request of the farmers' unions and the Milk Marketing Boards, the Agricultural Departments are reviewing with them the basis on which the standard quantities are set. I shall consider the present arrangements in the light of these discussions.

§ Mr. Buchanan-Smith
Is the right hon. Gentleman aware that the world production of milk is no longer increasing and that world stocks of dairy produce are declining? In those circumstances, would he not agree that the home producer is entitled to a greater share of the market for manufactured dairy produce?

§ Mr. Peart
I have said that I am reviewing the standard quantities. I hope that the hon. Member will not panic. We have a 45 per cent. reserve.

§ Mr. Bruce-Gardyne
Can the right hon. Gentleman confirm that the details of the negotiations of the Price Review are supposed to be confidential? In view of this, will he and his hon. Friend stop making misleading statements about the supposed demands of the N.F.U. for a 6d. price increase?

§ Mr. Peart
I accept that the details are secret, and I have not revealed them. I have said in broadcasts and in speeches that some members of the farming community have made an absurd demand of 6d. a gallon for milk, which would have meant £54 million to the consumers.