§ 3. Mr. Nicholas Bakerasked the Minister of Agriculture, Fisheries and Food what percentagae of total liquid milk consumed in the United Kingdom is sold through producer retailers.
§ The Minister of State, Ministry of Agriculture, Fisheries and Food (Mr. John MacGregor)Information provided by the Milk Marketing Board indicates that producer retailer sales accounted for about 3.4 per cent. of total liquid milk sales in the United Kingdom in the year ended 31 March 1983.
§ Mr. BakerMy hon. Friend will be aware of the great concern in the dairy industry about EEC proposals for a super levy. What does he think will happen to the percentage of liquid milk sales by producer-retailers in the unlikely and possibly disastrous event of the Commission's super levy proposals being implemented?
§ Mr. MacGregorIf a super levy were introduced—my hon. Friend will know from the recent debate that there is no commitment to that—much would depend on the form in which it was brought in. If it were the original Commission proposal, which did not cover milk sold by producer-retailers, I expect that the sales of liquid milk by producer-retailers would rise. That would be a positive incentive to go into producer-retailing. We believe that if such a systen were introduced this would undermine the effectiveness of the levy and distort the market. That is why we have been pressing for producer-retailers to be included if a super levy is introduced.
Mr. J. Enoch PowellThe Minister has given the United Kingdom figure. Can he give the Northern Ireland component percentage?
§ Mr. MacGregorI regret to say that I do not have the figures for Northern Ireland. I shall write to the right hon. Gentleman and supply them. Producer-retailer sales are higher in certain other Community countries than in the United Kingdom. That is an additional reason for ensuring that any super levy covers them.
§ Mr. Teddy TaylorIs the Minister aware of the serious gloom and concern among milk producers and retailers as they face the prospect of being clobbered because of an uncontrollable surplus on the continent of Europe at a time when Britain is just about self-sufficient? Would not many of my hon. Friend's problems be solved if he proposed to the EEC that we should take milk out of the common agricultural policy?
§ Mr. MacGregorWe had a long debate recently on who was responsible for the surpluses. The United Kingdom is very nearly self-sufficient and contributes to some of the surpluses in stock. It would be dangerous to argue for exemptions for any individual country, because we would not come best out of that. To remove milk from the CAP is not a practical proposition.
§ Mr. TaylorWhy?
Mr. Mark HughesWill the Minister assure the House that he will not allow a major distortion of the milk marketing schemes to occur due to an expansion of producer-retailing in Britain, which the levy scheme could produce? Secondly, where is the Newhaven consignment of UHT milk?
§ Mr. MacGregorI have already said that we believe that if there were a super levy—I repeat "if'—officially it should cover producer-retailers. If it did not, it would undermine the system. As for the Newhaven consignment, the local authority concerned is examining that milk.