HC Deb 22 May 1975 vol 892 cc1595-7
7. Mr. Nicholas Winterton

asked the Minister of Agriculture, Fisheries and Food what was the reduction in the national dairy herd in 1974.

Mr. Strang

In December 1974 the United Kingdom dairy herd was 152,000 head smaller than a year before.

Mr. Winterton

I thank the Minister for that reply. What assurance can he give to dairy farmers that they will receive an adequate price for their milk this autumn, in view of the fact that it is important that dairy farmers should be enabled to produce a higher quantity per cow and produce more cows for the milk herd?

Mr. Strang

We certainly wish for an expansion in milk production. In order to secure that, we shall have to give producers an adequate return. I remind the hon. Gentleman that since coming into office the present Government have increased the guaranteed price for milk by 32 per cent.

Mr. Hardy

Will my hon. Friend confirm that the reduction in the dairy herd last year was in line with the previous Government's policy of persuading farmers to go out of dairy production into beef production? The previous Government had a great deal of success in achieving that aim. However, will my hon. Friend confirm that it is the present Government's policy to persuade people to remain in dairy farming? Will he, therefore, comment on the question whether the reduction in the dairy herd is definitely slowing down?

Mr. Strang

I assure my hon. Friend that expansion of dairy production is central to our White Paper on increased food production. I agree with him that the dairy conversion scheme had an influence but, more significantly, the very severe erosion of dairy producers' returns the previous winter created a lack of confidence in the industry.

16. Mr. Peter Mills

asked the Minister of Agriculture, Fisheries and Food if, in the light of the March sample survey results of livestock numbers in Great Britain, which showed that the national dairy herd was estimated to have fallen by 126,000 cows, or by 4.4 per cent., and that the number of cows in calf has fallen by 8 per cent. compared with March 1974, he will make proposals designed to expand the national dairy herd in accordance with the recent Government White Paper "Food from our Own Resources".

Mr. Strang

We have already raised the guaranteed price for milk to a level 32 per cent. higher than that determined by the last administration a year ago. As indicated in the White Paper, we are continuing discussions with the interests concerned to determine what measures it would be right and practicable to take in order to achieve the expansion.

Mr. Mills

Will the Minister bear in mind that the Government's aim and the record of what has happened simply do not tally, and that if he wants extra milk production much more will have to be done? Regarding the very interesting phrase, "food from our own resources", will the hon. Gentleman bear in mind that the resources must first be given to the British farmer before he can produce the food?

Mr. Strang

The Government accept responsibility to take action following publication of the White Paper last month, but I am sure that the hon. Gen- tleman will agree that we cannot accept responsibility for the disastrous situation that we took over from the previous Government.

Mr. Gould

How does my hon. Friend propose to resolve the conflict between the emphasis in the White Paper on expanding dairy production and the objective of the Community stocktaking paper on the common agricultural policy, of reducing dairy production?

Mr. Strang

My hon. Friend has raised a pertinent and fair point. We, as a nation, must accept that in or out of the Community we have a balance of payments problem. If it is in our national interest to produce more food, we should do so in or out of the Community.

Mr. Powell

What was the cause of the miscalculation which resulted in the previous as well as the present Government's measures which have reduced the size of the dairy herd?

Mr. Strang

I suspect that there are a number of answers to that important question. Certainly one factor has been the over-emphasis put on beef by the previous administration.

Mr. Buchan

Does my hon. Friend accept that we are delighted with his answer that in or out of the Market we intend to pursue our own best interests? Does that mean that we can now have a guarantee from the Front Bench that they will resist proposals to cut back on dairy production in the Market as a whole and that British interests will not be cut back because of our balance of payments problem?

Mr. Strang

I think that my hon. Friend will accept that if we are in the Community my right hon. Friend will continue to act in the best interests of the British people.

Mr. Hicks

Will the Minister tell us where these much-needed resources will come from? Is he aware of the need to make the necessary adjustment in the milk price before the autumn?

Mr. Strang

The hon. Gentleman will appreciate that we are having discussions with the industry. He would not, therefore, expect me to pre-empt those discussions today.