HC Deb 17 November 1983 vol 48 cc969-70
1. Mr. Spence

asked the Minister of Agriculture, Fisheries and Food what are the Government views on the Commission's proposals for the dairy sector.

The Minister of Agriculture, Fisheries and Food (Mr. Michael Jopling)

The Commission has produced a number of proposals for the milk sector. 'These are still under discussion. The main one is for a supplementary levy to be charged on increases in milk production. I consider the best way to solve the problems in the milk sector is firm action on the level of milk price support.

Mr. Spence

I thank my right hon. Friend for that reply. Will he confirm that the proposal to use 1981 figures as the base for milk production in the United Kingdom will be disastrous in view of the expansion that has occurred in the industry since that time? Will he further confirm that the knock-on effect in supply industries to the agriculture industry, particularly the dairy and livestock sector, would be almost cataclysmic?

Mr. Jopling

My hon. Friend has put his finger on one of the main difficulties. A supplementary levy based on

1981 figures would not suit us at all well. My hon. Friend might like to know that the Presidency recently suggested taking the average for 1981, 1982 and 1983 minus 2 per cent. That also would not be satisfactory to us. To be acceptable, a supplementary levy would have to be on a more satisfactory basis than either of those suggested.

Mr. Corbett

Now that the Minister has opened the door to UHT and sterilised milk imports, what progress is his Department making in trying to secure stringent dairy hygiene regulations throughout the Community?

Mr. Jopling

The Community is looking into this matter. With our high standards of hygiene, that should be welcomed.

Mr. Maxwell-Hyslop

Are not national quotas the only feasible way of preventing Germany and France from continuing to support small producers who do not depend on milk production income to keep themselves and their families? Will not price alone, therefore, be bound to fail?

Mr. Jopling

My hon. Friend would do well to consider the implications of national quotas. In practice, it would mean operating a scheme on similar lines to the co-responsibility levy, which is so unpopular in this country and has been ineffective in dealing with the growing milk surpluses. I have severe reservations about the national quota idea.

Mr. John David Taylor

The Minister expresses his preference for a milk price support scheme. Does that mean that the Government are firmly opposed both to the super levy and to quotas for individual milk producers?

Mr. Jopling

We have consistently said that the best way to deal with surplus milk is to use the mechanism of price and the discipline of threshold guarantees. That view is supported by the Milk Marketing Board, and I am convinced that that is the best way to deal with the problem.

Mr. Maclennan

Does the Minister accept that if he proceeds by way of quantitative restrictions on price support, such as the supplementary levy on milk, he risks transferring the surplus problem to some other commodity, such as cereals? If so, is he proposing to proceed pan passu on cereals?

Mr. Jopling

The question is not about cereals, and I do not think I should be led down that path. If there were to be a reduction in milk production, which there must be throughout the Community, my guess is that the pressure would be on commodities other than cereals. In those circumstances, I think that the pressure would be on some of the livestock sectors.