HC Deb 22 January 1981 vol 997 cc406-7
2. Mr. Temple-Morris

asked the Minister of Agriculture, Fisheries and Food when next he intends to meet the president of the National Farmers Union to discuss the co-responsibility levy.

The Minister of Agriculture, Fisheries and Food (Mr. Peter Walker)

I meet the president of the National Farmers Union frequently and the co-responsibility levy is amongst the topics discussed.

Mr. Temple-Morris

Will my right hon. Friend further discuss with the president his efforts to secure fair treatment as between EEC partners? How can we get such treatment with a flat-rate contribution system which encourages the increased Continental output which remains at the root of this problem? How will my right hon. Friend negotiate on this?

Mr. Walker

As in the past, we have rejected forms of co-responsibility levy which operate unfairly against British producers. Another important factor to be taken into consideration in this year's price review is the impact on milk production of a number of countries introducing substantial national aids. Those aids increase the production and the Community shares the cost of disposing of the surpluses.

Mr. Allen McKay

When next the Minister meets the president of the NFU, will he discuss the legislation which refers to tenant farmers? I have in mind the farmer about whom I have written to the Minister—James Clegg, who, after 40 years of working on that land, has now been thrown off the farm by the land owner. Will the Minister discuss with the union any alterations in the legislation?

Mr. Walker

Certainly land tenure is something discussed between myself and the leaders of the NFU. The hon. Gentleman knows, I think, that among the members of the union are a substantial number of the tenants involved. Talks are going on at present. The objective is a sensible system of landlord and tenure and one which may give young people opportunities to obtain tenancies of farms.

Mr. Moate

Will my right hon, Friend confirm that he wants to see an increase in United Kingdom dairy production? If so, why have we been encouraging dairy farmers, even efficient ones, to leave the industry? How can we justify any co-responsibility levy in those circumstances?

Mr. Walker

The incentive for dairy farmers is a Community incentive. My hon. Friend will be pleased to know that, partly as a result of this Government's initiative, that incentive is being eradicated. For many months of last year, dairy production was up. The main way of improving dairy production in this country, in terms of what can be used, is an improvement in our manufactured products, both cheese and butter and others. There are encouraging signs that that is happening.

Mr. Geraint Howells

Does not the Minister agree that the co-responsibility system should be abolished in countries such as Britain which produce less than their own milk requirements?

Mr. Walker

As the hon. Gentleman knows, the levy was originally a means of financing the promotion of increasing consumption throughout the Community, which was of benefit to us as well. However, if the levy is to be used as a system of buoying up the income of the CAP irrespective of the impact of the levy itself, or if it is going to be used in a discriminatory way against Britain, I will obviously oppose it.