HC Deb 03 July 1975 vol 894 cc1652-5
3. Mr. Boscawen

asked the Minister of Agriculture, Fisheries and Food by what number the national dairy herd has declined since February 1974; what the decline in milk production in gallonage terms has been over the same period; and if he will take steps designed to arrest this decline and facilitate the expansion of the British dairy herd as outlined in a recent Government White Paper on the expansion of British agriculture.

6. Mr. Temple-Morris

asked the Minister of Agriculture, Fisheries and Food if he will take steps designed to arrest the present decline in the national dairy herd in order to fulfil his aims set out in a recent White Paper on the expansion of agriculture; and when he intends to take this action.

36. Mr. Rathbone

asked the Minister of Agriculture, Fisheries and Food when he will announce the Government's decision regarding new milk prices for the remainder of 1975.

41. Sir J. Langford-Holt

asked the Minister of Agriculture, Fisheries and Food, in view of the further fall in confidence of farmers in the future of the dairy industry, whether he will now make a statement on the state of the industry.

The Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food (Mr. Gavin Strang)

Figures for the United Kingdom dairy herd are available on a December or June basis only. Between December 1973 and December 1974, the latest date for which figures are available, the herd declined by 154,000. Sales of milk through the milk marketing boards were 82 million gallons less in the 12 months ending 31st December 1974 than in the 12 months ending 31st December 1973.

The Government are considering with the interests concerned what measures might be right and practicable to take in furtherance of the aims set out in the Government's White Paper.

Mr. Boscawen

Do these figures not reveal that the Ministry has presided over nearly 18 months of continual, persistent and unremitting decline in the dairy herd, a decline in the return on every cow, a serious fall in the number of inseminations, and a serious decline in moral in the industry generally? If that is true, will he tell the people that if they want the production of milk and other dairy products to continue they will have to pay a great deal more for them than the idiotically unrealistic price of 6p a pint that they are being asked today? If he will not tell them that, will he say what the Prime Minister meant when he said that help would be available to the industry?

Mr. Strang

The hon. Member's initial remarks completely ignore the hammering which the dairy industry took in the autumn of 1973, and take no account of the fact that the Government have increased the guaranteed price by no less than 32 per cent. Of course, this decline must be reversed if we are to secure the increase in production which we wish.

Mr. Swain

Is the Minister aware that the dairy herd has not improved whilst the beef and veal herds have improved by 25 per cent. since April last year? Is not the disastrous effect of this going to be that within 12 months from now we shall have to import liquid milk from the Continent?

Mr. Strang

My hon. Friend's latter point is a little alarmist. He will recognise that the improvement in the beef market which was secured as a result of my right hon. Friend's intervention, has been very much in the industry's interests.

Mr. Rathbone

Is the Minister aware that many people share the concern expressed by the hon. Member for Derbyshire, North-East (Mr. Swain), that by their own admission the Government have not done enough to help the dairy herd in the last two years? If action is not taken quickly, milk supplies to families and, most particularly, to children during this coming winter will be jeopardised. Imports will have to be increased, putting a greater pressure on the already beleaguered pound.

Mr. Strang

I accept that the Government have a responsibility to reverse the current decline in the level of milk production, and we are having discussions with the unions to that effect.

Mr. Corbett

I welcome my hon. Friend's announcement that talks are taking place with the industry. Will he ensure that these are conducted with great urgency? If the present decline in the dairy herd continues it will threaten doorstep deliveries and totally sabotage the aims of extra output which we so urgently need, as set out in the White Paper.

Mr. Strang

I agree that we have to reverse this decline if we are to achieve the targets set in the White Paper "Food from Our Own Resources".

Mr. Geraint Howells

Does the Minister not agree that the only way to expand production from the land is to give a realistic price for the end product? Is he aware that the cost of production has increased during the last six months? Has he any plans to introduce a special price review this autumn?

Mr. Strang

The problem is that the consumer and the producer may sometimes disagree about what is a realistic price. I accept that if we are to get the expansion and investment that we need the industry must get a satisfactory income with which to finance it.

Mr. Jopling

Will the Minister stop living in the past and tell us that he will now look to his responsibilities? Is he aware that there is deep concern over the danger of fodder shortages in many parts of the country next winter? Has he seen statements in the Press that there is a danger of liquid milk rationing next winter, and does he accept the need for higher prices for milk for producers in the very near future, so that they will be able to maintain supplies over next winter?

Mr. Strang

It is a little alarmist for the hon. Member to talk about rationing at this stage, but certainly we accept that we must reverse the current trend. That is what the negotiations with the farming unions are all about. It is not the question of the Government's having been in office for 18 months. We gave the industry the biggest increase ever last October. We are talking here about a follow-up to "Food from Our Own Resources" and it would be wrong to preempt the discussions which are taking place.