HC Deb 15 March 1979 vol 964 cc686-7
8. Mr. Nicholas Winterton

asked the Minister of Agriculture, Fisheries and Food what plans he now has to meet the president of the Dairy Trade Federation.

Mr. John Silkin

I frequently meet the president of the Dairy Trade Federation, but I have no specific plans for a meeting at present.

Mr. Winterton:

I am grateful to the right hon. Gentleman for that reply. Is he aware that the financial position facing the dairy industry is becoming very grave indeed, and that even with a 15 per cent. revaluation, as it were, of the green pound it would require an additional penny a pint in the autumn to restore the margins of the dairy farmers? Will he bear this in mind when he makes his price review announcements? Will he now firmly tell the House that under no circumstances will the Government accept the co-responsibility levy proposals as at present put forward by the EEC?

Mr. Silkin

Perhaps I might deal with the second point first, because it has arisen before. I do not believe that the co-responsibility levy is right, for a number of reasons. I believe that it is discriminatory, against the United Kingdom in particular, but against efficient farmers throughout the Community anyway. In my view it is a reward for inefficiency and a penalty for efficiency. Secondly, if one is to attack the price level, as I believe one should, this is a bad way of doing so. I hope that the hon. Gentleman will accept that I have given a clear reply to his question.

As to the profitability of the dairy industry, the dairy herd has increased by about 53,000 in the last 12 months, calves are selling at a record price level, the feeding situation is very good and the present productivity rate is better than it was last year—and that was the best for several years. Of course, I shall look at matters as they arise.

Mr. Gould

Will my right hon. Friend point out to the Dairy Trade Federation, in case it is in any doubt on the matter, that New Zealand is willing, able and, indeed, desperately anxious to retain access to this market for her butter and cheese and would wish to be able to supply us with those products at prices that are approximately half the level of Common Market prices?

Mr. Silkin

This is one of the areas of dispute that I must confess I have with the Dairy Trade Federation. I believe that the importation of New Zealand butter and cheese into the United Kingdom is right, for every possible reason.