Dairy Trade Federation (Hansard, 8 February 1979)

§ 10. Mr. Goodlad
asked the Minister of Agriculture, Fisheries and Food when 544 next he will meet the president of the Dairy Federation.

§ Mr. John Silkin
I am in regular contact with the president of the Dairy Trade Federation, but I have no specific plans for a meeting at present.

§ Mr. Goodlad
Will the Secretary of State discuss with the president, when he meets him, the possible consequence to producers of the strict health regulations on milk in this country not being renewed in 1980 and there being an influx of cut-price milk from Ireland and the Continent? Will he also consider the consequences on the consumers if our traditional door-to-door deliveries are not continued? Will the Minister say what he is attempting to do to get. Continental safety standards up to our own?

§ Mr. Silkin
The hon. Gentleman put his finger on an important point. This is one reason, among many others, why we must do everything we can to preserve the proper hygiene regulations. Otherwise it seems to me that we are liable to be flooded with cut-price milk but of a standard that we have not had in this country, to the best of my knowledge. Those who advocate such a policy should—I am not a vindictive man—be sentenced to drink Charlemagne building milk for three months.

§ Mr. Ioan Evans
When my right hon. Friend meets the president, will he assure him that he intends to resist the EEC proposal for a levy on dairy farm production? Is it not a fact that the common agricultural policy is working against the interests of consumers, taxpayers and the farming community?

§ Mr. Silkin
There is no doubt that the co-responsibility levy to which my hon. Friend referred would—certainly in its present form—be disastrous for our dairy production. I do not know what changes there may be. This is an example of the Commission not having the courage of our convictions. The co-responsibility levy is meant to be a tax by which to bring down the support price of dairy products throughout the Community. This should be done directly. There is an understandable case for our prices going up somewhat. There is no case whatever for leaving as they are, let alone increasing, dairy prices in the Community.

§ Mr. Nicholas Winterton
When the Minister next meets the president of the Dairy Trade Federation will he advise him that he is fully aware that this country is not self-sufficient in liquid milk and milk products and that in no circumstances will he permit the co-responsibility levy, at present proposed by the EEC, to be implemented? I am glad he indicated that earlier. Will he also emphasise the important point made by my hon. Friend the Member for Northwich (Mr. Goodlad), that there must be no undermining of the health and hygiene regulations of this country, which would result in the mass import of bulk liquid milk of a lower quality which would destroy our daily pinta within a year or two?

§ Mr. Silkin
I do not mind saying all that to the president of the Dairy Trade Federation. No doubt he would be interested to hear me say it. However, it would be much better if I said it in Brussels.

§ Mr. Watkinson
Will my right hon. Friend give consideration to Commissioner Gundelach's proposal to encourage greater expenditure on milk marketing and dairy marketing generally in the Community? Perhaps he would care to point to the model of the British Milk Marketing Board, which the Community attempted to destroy.

§ Mr. Silkin
That is right. That is not the only matter about which we should be concerned. It is not only a question of cutting down production. There are many people in Europe who, if the price were right, would be willing to consume. I am distressed that, in spite of the fact that we could have saved £3¾ million of the budget we pay to Brussels, no fewer than 42 Conservative councils in this country have refused to operate the free school milk scheme.

§ Mr. Jopling
Does the Minister agree that there is widespread concern in the dairy industry about the package which Mr. Gundelach proposed in the past week? Will he try to relieve some of that gloom by commenting on the report in The Daily Telegraph this morning that Mr. Gundelach is climbing down on the matter of the co-responsibility levy, and that it may not be necessary to exempt farmers in Europe from the levy?

§ Mr. Silkin
We shall have to see what happens in the course of what I said that I believe will be a fairly protracted series of negotiations. The matter on which I do not want the Commissioner to climb down, however, is the price freeze.

§ 11. Mr. Dykes
asked the Minister of Agriculture, Fisheries and Food what recent representations he has received from members of the public concerning the effects of feedstuff shortages in live-stock in the recent lorry drivers' strike.

§ Mr. John Silkin
To date I have received three such representations.

§ Mr. Dykes
From the previous stoppage of supplies, which lasted a short time, will the Minister say whether there are any lessons to be learned for the future, just in case the Minister's own union starts to cut up rough again about deliveries, for wholly unconnected reasons?

§ Mr. Silkin
I think that the lessons are that, if we find ourselves in this sort of position again—and obviously I hope we shall not—it will be preferable to deal with it locally, with the Government watching overall to see that the different problems as they arise are dealt with on a nationwide basis, with talks taking place locally between Government officials, MAFF officials in particular in this case, the NFU and the striking people, whoever they may be. That is a very tolerable way of dealing with the position, and that is exactly what happened.

§ Mr. Hardy
Although the supply of feeding stuffs was immensely better than was suggested by both the media and the Opposition during the recent dispute, is my right hon. Friend aware of, and will he investigate, the quite sharp increases in the price of feeding stuffs which have been imposed, both directly and by the termination of discounts, during and since the recent dispute?

§ Mr. Silkin
I think there was bound to be an increase in the price of feeding stuffs, partly because feeding stuffs were obviously in shorter supply, and that has its effect, and also partly because, in order to get the supply going, feeding stuffs had to be taken rather greater distances. But there were other factors involved. We must remember that we 547 have had one of the worst winters for 20 or 30 years. That added to the cost.