HC Deb 30 October 1980 vol 991 cc677-9
4. Mr. Hal Miller

asked the Minister of Agriculture, Fisheries and Food what developments there have been during 1980 affecting the size of the dairy herd and domestic production of milk.

Mr. Peter Walker

The size of the dairy herd in England and Wales in 1980 has been affected by a number of factors, including the impact of the EEC's non-marketing scheme. Despite this, milk production during the year has held up, and indeed is slightly higher than in the previous year.

Mr. Miller

In the light of the decline in the number of producers, partly as a result of declining profitability and the EEC scheme that my hon. Friend has mentioned, and the fact that we are not self-sufficient in milk production, will my right hon. Friend, if I may put it this way, give a clear steer to our dairy farmers on the Government's policy?

Mr. Walker

The favourable effects on the industry of three green pound devaluations and the increase that it has received from the increase in the retail price of milk show that the Government consider it essential to maintain a major presence for the dairy industry. The big scope for improvement is in dairy products. That is why I am pleased to tell the House that over the past two months the proportion of butter sold to the British market that was British-produced has been higher than for many years.

Mr. Torney

Does the right hon. Gentleman agree that the EEC levies act against the British dairy farmer when we have no surplus of milk or dairy products? Will he therefore take action with the EEC to ensure that those who produce the milk surpluses reduce the number of their dairy cattle?

Mr. Walker

In negotiations last year, Britain, alone of the member countries, expressed sympathy for the Commission's proposal that additional levies should be imposed on those who produce the surpluses. That is a principle with which we are basically in sympathy.

Sir Paul Bryan

Is my right hon. Friend aware that British dairy farmers are annoyed at having to pay the co-responsibility levy, and even more annoyed when they discover that French farmers are being compensated by their Government?

Mr. Walker

I should point out that the period during which French farmers did not pay the levy was the last quarter of 1977, when I had no personal responsibility for these matters. I am glad to say that since that time French farmers have paid the levy.

Mr. Strang

Are not the right hon. Gentleman's replies unreasonably complacent, since thousands of milk producers are going out of production as a direct consequence of his Government's high interest rates and the EEC co-responsibility levy? Was not the public burning of the EEC co-responsibility levy cheque by the chairman of the Scottish Milk Marketing Board ample evidence that the producers are reaching the end of their tether? When will the Minister take some action?

Mr. Walker

When the cheque burning took place, the general impression created in the press was that French farmers were not paying the levy and that the cheque was burnt in protest at that. It is now known that the period when they did not pay the levy was the last quarter of 1977, when the hon. Gentleman had certain responsibilities in this sphere.