HC Deb 21 July 1975 vol 896 cc31-3
27. Mr. William Hamilton

asked the Secretary of State for Prices and Consumer Protection what is the present subsidy on the price of liquid milk; and whether she intends to maintain price control on this commodity.

Mr. Maclennan

The subsidy on liquid milk is estimated to amount to £270 million in the current financial year, which is equivalent to about 2p per pint. The price of milk has been controlled since 1940 and we have no intention of changing the position.

Mr. Hamilton

That reply is very satisfactory. We hope that whatever happens to other food subsidies this one will be maintained, if not increased. Does my hon. Friend agree that milk is the most nutritious food for the most helpless sections of the community, namely, children and old people, and that the longer he maintains it, the more the new Government policies against inflation will be accepted?

Mr. Maclennan

I am grateful to my hon. Friend, and I agree with him whole heartedly.

Miss Fookes

Will the hon. Gentleman urgently consult the Minister of Agriculture, because if the price is held down at the present level there will be a shortage of liquid milk, as farmers will not produce it?

Mr. Maclennan

The hon. Lady is unreasonably pessimistic about the liquid milk situation.

Mr. Raphael Tuck

Is my hon. Friend aware that on 26th June the Finance Minister for the Republic of Ireland, Mr. Ryan, announced that he was applying a subsidy to milk to reduce the price by 2p a pint? Does my hon. Friend think that he might follow that example.

Mr. Maclennan

Perhaps my hon. Friend will await the statement of my right hon. Friend the Minister of Agriculture when he returns from his current talks. I think that it will deal with my hon. Friend's point.

Mr. Biffen

What would be the impact on the subsidy bill if the green pound were devalued by 5 per cent. but the retail price of milk was maintained at its present level?

Mr. Maclennan

My right hon. Friend has already answered that question—

Mr. Biffen

No.

Mr. Maclennan

—and has pointed to the statement that my right hon. Friend the Minister of Agriculture will be making. Talk about the possible extent of the devaluation of the green pound is pure speculation.

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