HC Deb 27 June 1983 vol 44 cc335-6
8. Mr. Geraint Howells

asked the Secretary of State for Wales if he is satisfied with the present state of the dairy industry in Wales; and if he will make a statement.

Mr. Nicholas Edwards

Despite the set-back of a wet spring, prospects for the dairy industry in Wales remain good. Trends in costs and incomes suggest that profitability has improved significantly in 1982–83 following a period of decline, thanks to moderation in the rate of increase in costs and substantial improvement in milk yields.

Mr. Howells

If dairy farmers in Wales increase production during the next five years as expected, will the Secretary of State introduce a super levy or a quota system?

Mr. Edwards

I have no proposals for introducing any new schemes at present. As the hon. Gentleman is fully aware, there is concern in the EC about the level of milk production and no doubt several schemes will be considered, but the Governmen have always vigorously defended the interests of British and Welsh agriculture in the EC. During the election it was abundantly clear that Welsh farmers recognised the importance of our membership of the Community.

Mr. Denzil Davies

In view of the Government's concern for the Welsh dairy industry, will the right hon. Gentleman give an undertaking that the Government will veto any proposal for a super levy?

Mr. Edwards

The right hon. Gentleman, who throughout the election argued that we should not be in the Community—although nothing could be more damaging for Wales than our withdrawal — clearly does not understand the way in which the Community works. We shall enter into discussions to improve the budget and other arrangements in Europe with a clear determination to ensure that British interests are properly looked after.