Milk (Hansard, 28 July 1977)

§ 13. Mr. Peter Mills
asked the Minister of Agriculture, Fisheries and Food what steps he intends to take to maintain the level of liquid milk consumption in the United Kingdom.

§ Mr. John Silkin
As my right hon. Friend the Chancellor of the Exchequer announced on 15th July, the subsidy on liquid milk is to be increased so that the retail price can be held at its present level throughout the rest of the year. The adverse effect of a price increase on the level of consumption will thus be avoided.

§ Mr. Mills
Is not this a complete reversal of Government policy on these matters? Are we not now having a sort of milk price yo-yo? Does the Minister agree that what is really needed is to see that the economic policies of this country are improved, and the unemployment situation improved, so that the consumer has enough purchasing power, rather than this constant yo-yo in prices?

§ Mr. Silkin
I am sure that my right hon. Friend the Chancellor of the Exchequer, like myself, will wish to express his appreciation of the hon. Gentleman's support for our economic policy. With regard to the yo-yo-ing of price, it is not the down "yo', if I may put it that way, that matters. It is the up "yo" that matters. It is precisely for that reason that the subsidy was introduced.

Mr. Wm. Ross
As the level of the farm gate price is tied to the percentage of the milk produced that is sold in the liquid market, can the Minister tell us what steps he has taken to maintain the level of the farm gate price to farmers in Northern Ireland after 1st January next?

§ Mr. Silkin
I cannot at the moment. I should like to be able to do so. Discussions are going on with all interested parties, including, of course, my right hon. Friend the Secretary of State for Northern Ireland and the Northern Irish interests. As soon as I possibly can I shall ensure that the House is kept properly informed

§ Mr. Newens
Will my right hon. Friend have discussions with the Secretary of State for Education and Science about the desirability of reintroducing school 925 milk for those primary school children who do not have it, as that would not only be good for them in nutritional terms but would be very good for the dairy industry?

§ Mr. Silkin
The provision of milk for liquid consumption is nutritionally of great importance to this country. It is why we have fought so hard and will continue to fight hard for any institution, like the milk marketing boards, which will protect the liquid milk market. I shall draw to my right hon. Friend's attention the specific point raised by my hon. Friend.