Milk (Hansard, 28 February 1968)

§ 18. Mr. Peter Mills
asked the Minister of Agriculture, Fisheries and Food if he will seek to reduce and control the importation of skim milk powder and products, in view of the dilution effects they have on the pool price paid for liquid milk to British farmers.

§ Mr. Hoy
Returns to milk producers are maintained at the level considered appropriate through the mechanism of the milk guarantee, and the standard 1395 quantity to which the guaranteed price applies in fact comprises a substantial quantity of milk which goes to the manufacture of milk products.

§ Mr. Mills
But does the hon. Gentleman realise the very serious effect which these imports have on the dairy industry? If he wants British agriculture to play its part in solving our present problems, he must start to do something about controlling imports.

§ Mr. Hoy
Obviously, we are always looking at this question, but I am bound to point out to the hon. Gentleman that the pool price paid to farmers during the current year is the highest on record.

§ Mr. Emrys Hughes
Is my hon. Friend aware that the dairy farmers are completely bewildered and dismayed that the Government are to reduce the milk supplied to schools by £5 million worth?

§ Mr. Speaker
Order. That does not arise on this Question.

§ Mr. Emrys Hughes
On a point of order. It definitely does arise because skim milk and milk products are very closely associated.

§ Mr. Speaker
The question is about the importation of skim milk.

§ Mr. Emrys Hughes
In view of that Ruling, I give notice that I will raise this matter at the earliest possible moment on the Adjournment in order to prove that this is of interest to milk producers.

§ Mr. Speaker
Mr. Mills. No. 19.

§ Mr. Manuel
On a point of order. I have been trying to get in on Question No. 18. A lot of the milk going into the pool is not served to school children, and the pool price is much lower—Is. 6d., as against 3s. 4d., actually—and, therefore, school milk has a bearing on the Question.

§ Mr. Speaker
It would be in order to put down a Question about the effect of the new Bill on the pool price of milk to farmers. This Question is about the importation of skim milk.

§ 22. Mr. Buchanan-Smith
asked the Minister of Agriculture, Fisheries and Food if, in view of the increase in numbers of dairy cows, he will ensure that the pool price for milk is not diluted.

§ Mr. Hoy
This point will be taken into account at the Annual Review in accordance with the assurance given in 1966.

§ Mr. Buchanan-Smith
In the light of those assurances which were given, does the Minister think it is right that the recent increase in the size of the dairy herd in this country has not been accompanied by any improvement in the net return to milk producers, and will he make sure that this is put right soon?

§ Mr. Hoy
I said in reply to a previous Question that the price they were receiving this year was the highest on record—[HON. MEMBERS: "Return?"]—return. Other points are bound to be taken into consideration but I stand by the assurance which was given in 1966.

§ Mr. Speaker
Mr. Emrys Hughes—now in order.

§ Mr. Emrys Hughes
Will the Minister explain how the dairy farmers of this country are likely to be affected by the economy cut of £5 million in school milk? How is this likely to affect the pool price? Will the farmers get greater consideration, as a result of this deduction, in the market for milk? Is the Minister aware that the farmers of this country are dismayed and disgusted by the attitude of the Government—and also of the Opposition—who failed to serve them?

§ Mr. Hoy
If I do not reply to the latter part of that question, since I am not responsible for both sides of the House, my hon. Friend will not be surprised. The farmer receives a guaranteed price from the Board, and, of course, it is a safeguard for the control of milk production.

§ Mr. Stodart
Will the hon. Gentleman consider controlling imports of milk products? If he does not do so, will he say how he will safeguard the returns to producers and at the same time get expansion?

§ Mr. Hoy
As I have said in earlier replies, we were looking at this imported skim powder. About 30 per cent. of it, indeed, is supplied by New Zealand, and it is difficult to know what hon. Gentlemen opposite mean, because one of the 1397 hon. Gentleman's back benchers was asking that we should be importing more from that part of the world.

§ Mr. Manuel
Is my hon. Friend aware that the £5 million cut affects milk to be given to children in school—[HON. MEMBERS: "Speak up."]—because that costs 3s. 4d. a gallon, and if it goes into the pool the return will be only 1s. 6d? There is disquiet among the farmers in my constituency at the loss. Is it really worth while doing it when the farmers will be collecting it again under the Annual Price Review if they get their way?

§ Mr. Hoy
The price this year is 3s. 3½d. a gallon.

§ 33. Mr. Hooley
asked the Minister of Agriculture, Fisheries and Food if he will initiate discussions with dairy farmers, with a view to arranging for the processing of surplus milk, so that it may be made available to overseas countries to strengthen their nutrition programmes.

§ Mr. Hoy
It is for the milk marketing boards and the manufacturing industry to determine their arrangements for the manufacture of milk products from milk surplus to liquid needs. The relief organisations can obtain these products and the Government have also included some skim milk powder in its contribution to the World Food Programme.

§ Mr. Hooley
Would my hon. Friend agree that this would be a very valuable way of contributing overseas aid without any charge on our balance of payments, and that it would go some way to offset the difficulties which I suspect will arise on the abolition of school milk for secondary schools?

§ Mr. Hoy
On the contrary. As importers of skimmed milk powder, it would be unrealistic to offer it in large quantities, but we are determined to make our contribution, as we did last year.