HC Deb 12 July 1979 vol 970 cc649-50
13. Mr. Edwin Wainwright

asked the Minister of Agriculture, Fisheries and Food what effect the recent conclusions on milk prices will have on structural surpluses in the EEC; and what effect he expects this to have on the British dairy industry.

Mr. Peter Walker

The freeze on EEC support prices for milk, which I negotiated as part of this year's CAP price package, is an important step towards discouraging the increasingly costly overproduction of milk in the Community. The rejection of an increased co-responsibility levy, and the 5 per cent. green pound devaluation, should permit efficient producers in the United Kingdom to maintain their competitive position.

Mr. Wainwright

Does the right hon. Gentleman realise that in spite of what he keeps saying in the press and in this House the dairy farmers of this country are greatly disturbed that nothing is being done to reduce the surplus of milk in the EEC? Is he not aware that this will cause great harm to milk producers in this country, especially to small farmers? Will he take further action on the matter?

Mr. Walker

This has been the position for several years. For the first time, we have achieved a freeze on the price of milk.

Mr. Torney

Is the Minister aware of the tremendous swindle occurring within the EEC, and outside, in dairy products that are sold at giveaway prices to countries outside the EEC and then come back into the EEC at top EEC prices? Will he take steps, through the EEC, to stop this sort of swindle and to stop the waste of British taxpayers' money that is being used to pay for this swindle?

Mr. Walker

If details of any such arrangements come to the attention of the hon. Gentleman and he sends them to me, we shall immediately send them to the Commission.