§ 14. Mr. Peter Millsasked the Minister of Agriculture, Fisheries and Food, in View of the fact that there is no milk surplus in this country, but a serious dilution of the pool price is being experienced, if he is satisfied with the effects of the recent price review increase; and if he will make a statement on the results of his discussions on this matter.
§ Mr. Cledwyn HughesThe prices currently being paid to producers by the Milk Marketing Boards do not necessarily reflect the level for the year as a whole. It is too early to forecast the final pattern of prices which can be influenced by many different factors.
§ Mr. MillsIs the Minister aware that, in spite of the promise in the Price Review, the return to producers in June is a halfpenny a gallon less than it was last year? This is not the way to bring any sort of confidence into the dairy industry. Will he start to do something about it now?
§ Mr. HughesIt is worth bearing in mind that the monthly prices are slightly less than last year but the Milk Marketing Board is allowed for cost increases and lower prices for manufacturing milk. It is too soon yet to forecast average prices for the year as a whole.
§ Mr. Scott-HopkinsIs not one of the reasons why the price is being eroded the import of milk products, particularly cheese? What is the Minister doing to satisfy growing anxiety, to control the import of those products?
§ Mr. HughesThe price of British-produced cheese is remaining reasonably stable at present. We are considering representations made to us by the Milk Marketing Board and the unions, but proposals for control of imports have to be considered in relation to our international commitments and general commercial policy.
§ 21. Mr. Bryant Godman Irvineasked the Minister of Agriculture, Fisheries and Food what plans he has to expand home production of milk products to save imports; and if he will make a statement.
§ Mr. Cledwyn HughesThe awards given by the Government at the recent 430 Reviews to encourage an increase in beef production in pursuance of the selective expansion programme should enable the industry to make a contribution to the increasing demand for milk products.
§ Mr. Godman IrvineDoes not the Minister agree that unless there is a levy on imports there is no chance of this being achieved?
§ Mr. HughesI do not agree. I think that I and my colleagues in the Government should consider alternative possibilities. This is not an easy matter. There are considerable and difficult implications for the farming industry and for the consumer which it is important that we consider very carefully before we make any major switch of policy.
§ Dr. John DunwoodyWill my right hon. Friend take steps to help to ease the balance of payments problem by encouraging the industry to use modern techniques to export dairy produce from this country, including liquid milk?
§ Mr. HughesThese are matters which are being considered by the British Agricultural Export Council. The important thing is that we should produce more for our own consumption at home.