Dairy Products

HC Deb 26 June 1968 vol 767 cc430-4

15. Mr. Peter Mills

asked the Minister of Agriculture, Fisheries and Food in view of the fact that the dumping of surplus dairy produce in this country is causing a crisis in the dairy industry, what steps he is taking to remedy the situation by limiting imports or other appropriate action.

23. Mr. Monro

asked the Minister of Agriculture, Fisheries and Food whether he will make a statement on his general policy for controlling the import of dairy products.

Mr. Cledwyn Hughes

I have at present nothing further to add to the reply given to the hon. Member for Mid-Bedfordshire (Mr. Hastings) on 19th June.

Mr. Mills

Does the Minister realise that, because of the almost criminal reluctance of the Government to act upon imports, the worst dairy crisis for many years is upon us and that, if he wishes to do anything, he must act soon and very quickly?

Mr. Hughes

The hon. Member does not help the situation by using such exaggerated language. [HON. MEMBERS: "Oh."] This is the kind of thing which causes alarm in the industry. [HON. MEMBERS: "It is true."] The hon. Member clearly has not studied the situation adequately. There have been discussions with the Boards and unions, particularly about imports of cheddar cheese. The matter is being considered, but he should recognise that these matters cannot be completed quickly.

Mr. Monro

Does the Minister agree that much that is imported is heavily subsidised? How can the farmer expand if we are flooded out with imports?

Mr. Hughes

There is truth in what the hon. Member has said, but we are looking at the situation.

Mr. Godber

Will the Minister say quite simply whether or not he accepts that there is serious dumping of milk products—not just cheese, but all milk products—taking place at present? If he accepts that, what action are the Government to take to safeguard the home industry?

Mr. Hughes

The price of British cheese is remaining stable. A difficulty could arise, but the right hon. Gentleman should not exaggerate because butter, butter-oil and near-butter are subject to quota arrangements. We are consulting with the interests concerned at present and we shall come to a conclusion as quickly as possible.

16. Mr. Brewis

asked the Minister of Agriculture, Fisheries and Food what proportion of the United Kingdom market for dairy products will be supplied from home-produced sources this year; and what steps he is taking to increase it.

Mr. Cledwyn Hughes

Excluding milk for liquid consumption, home production provided 23 per cent. of our requirements for dairy products in 1967. On recent trends, the proportion this year should be similar, but it is too early to give a reliable forecast. The measures taken under the selective expansion programme should enable the home producer to take his share of the growing market for milk products.

Mr. Brewis

Has the right hon. Gentleman seen that the French immediately put on import controls when their economy is in difficulties? Can he say how long it will be before he can bring in anti-dumping measures?

Mr. Hughes

We do not necessarily have to imitate the French Government in all they do. We have international commitments, and we have international obligations for which the party opposite had some responsibility. We are honouring those obligations. This we shall continue to do in the best interests of British fanning. The problems mentioned by hon. Members opposite have not been overlooked. We shall act as soon as possible.

Mr. Jopling

How can the right hon. Gentleman make a reply like that when a situation exists in which the European Economic Community is paying an export subsidy seven times the selling price for certain dairy produce? Will he snap out of this appalling complacency?

Mr. Hughes

In view of the supplementary questions, I must set the record straight. Although imports have risen there is certainly no indication of a market collapse. It is important for the industry and producers that that should be understood. Prices of United Kingdom cheeses are being well maintained, and for milk producers the safeguard is the milk guarantee.

Mr. Manuel

Would not my right hon. Friend agree that if we had far fewer gentleman fanners whose main pastime is asking political questions—[Interruption.] —if they were all working farmers we would get greatly increased production?

Mr. Hughes

My Ministry's concern is to encourage the hard-working farmer and at the same time to protect the interests of the consumer.

Mr. Stodart

The right hon. Gentleman has referred to obligations he has to maintain. Is it not a fact that in dairy products the obligation he is up against is that made by his predecessor, the present Leader of the House, which gave the New Zealand Government unlimited access to these markets up to 1972?

Mr. Hughes

The hon. Gentleman knows perfectly well that there are quotas in relation to butter, near-butter products and butter-oil. The situation with cheese is slightly different, I agree, and this we are looking at.

30. Mr. Dudley Smith

asked the Minister of Agriculture, Fisheries and Food what were the comparative weights of dairy product imports in the first five months of 1967 and 1968.

Mr. Hoy

The weights during the periods January to April 1967 and 1968, inclusive, were 272,575 tons and 275,669 tons, respectively. Figures for May 1968 are not yet available.

Mr. Smith

Do not those figures show that our dairy farmers have every reason to be apprehensive? Will the Minister now take positive action by imposing import levies on milk products coming into this country in order to save our dairy industry from a serious deterioration?

Mr. Hoy

We want to give all the encouragement and protection we can. The hon. Gentleman talks in terms of a large increase, but it was 3,000 tons on 275,000 tons. One must put it into perspective. It was as a result of certain representations that we took action on the import of butter oil into this country and imposed a restrictive quota so as to give protection to our own industry.

Mr. Stodart

Does the hon. Gentleman recall that a year ago, in reply to a similar question, his right hon. Friend the previous Minister of Agriculture replied that the then increase was serious? Would not he say that the present increase is very serious?

Mr. Hoy

No, Sir. I have said that it ought to be taken into consideration in proportion to the total, that is, 3,000 as against 275,000 tons. One should neither exaggerate nor belittle it. When these figures are produced, it is up to any Government to look at them and protect our interests.

Mr. Emrys Hughes

In view of the considerable apprehension and consternation among small dairy farmers, what steps will the Government take to bring a Measure before the House to decrease their rents?

Mr. Hoy

My hon. Friend has frequently raised the question of rents, which is extremely important for tenants. I regret that I have no announcement to make about it at present.