HC Deb 03 May 1984 vol 59 cc530-2
6. Mr. Stephen Ross

asked the Minister of Agriculture, Fisheries and Food what financial assistance he is prepared to make available to smaller dairy farmers, whose income has been substantially reduced following the recent price review.

Mr. Jopling

As part of the agreement to introduce the supplementary levy scheme for milk, agreement was reached to extend the Community scheme to aid the incomes of small-scale milk producers for a further two years. There are also provisions; which may benefit smaller producers, in the Community regulations on the supplementary levy scheme for special allocations of milk quota to a producer who is implementing, or has recently implemented, a milk production development plan under either an FHDS or AHDS scheme.

Mr. Ross

Has the Minister seen the press release, which I believe has been sent to most hon. Members, by the Milk Marketing Board which makes very dismal reading? Will the collection of the levy be delayed for some time? Will the right hon. Gentleman introduce a scheme similar to that introduced by the Germans and French—his answer to an earlier question on that was disappointing — under which about 200 million deutschmarks will be given by the Germans and umpteen million francs by the French to help producers who want to leave the dairy industry? Further, will he do something for the producer-retailers to help sort out the mess in which they find themselves? Will he do something to put a bottom into the cow beef market, which would seem a sensible step to take?

Mr. Jopling

I am pleased to report to the House that the Commission has agreed to lump the first two payments of levy together. As a result, the first levy payments do not have to be collected until 45 days after the end of September—that is, by mid-November at the latest—and the hon. Gentleman will agree that that is a good move forward, which will help many milk producers.

As for the outgoers' scheme, which has been announced by Germany and to which the hon. Member for Aberdeen, North (Mr. Hughes) referred earlier, I understand that, for instance, the Netherlands and Denmark have not announced schemes. The fine print and details of the regulations were discussed in Brussels only yesterday, and we shall be considering that provision carefully.

Sir Peter Mills

While congratulating my right hon. Friend on that announcement, may I ask him to consider seriously a national scheme to allow, on a voluntary basis, dairy farmers to get out, as other countries are introducing such schemes? The milk quota could then be reallocated. Is he aware that it would be a serious blow to British dairy farmers if other Community countries made such arrangements and we did not?

Mr. Jopling

My hon. Friend will realise that the regulations came to fruition very recently indeed. Although a number of states, including ourselves, voted against them in Brussels yesterday, because certain details of them remain unsatisfactory, I hope that we can get them right. I hear what my hon. Friend says about the outgoers' scheme and the fact that it seems to have been taken up by some states and not by others.

Mr. Molyneaux

As the discussions and consultations with the Milk Marketing Board in Northern Ireland have been minimal, and regardless of what the right hon. Gentleman said in answer to an earlier question, may I ask him to publish a White Paper setting out all the facts and figures governing the allocation and arrangements for the milk quota scheme in Northern Ireland?

Mr. Jopling

I do not think that it is necessary to produce a White Paper on this matter. I am grateful to the right hon. Gentleman for not making the accusation that was made earlier, that Northern Ireland had been deprived of the 65,000 tonnes allocated to it. I am glad that he did not repeat that statement, which was wrong.

Mr. Hunter

In the light of the concern that is being expressed in some quarters about the volume of dairy products that we are importing from New Zealand, may I ask my right hon. Friend to comment on the possibility or otherwise of that being reviewed?

Mr. Jopling

The Council of Agriculture Ministers will be meeting on Monday and Tuesday of next week, when the import arrangements for New Zealand will be an important matter for discussion. As my hon. Friend probably knows, the Commission's proposal is that this year 83,000 tonnes of butter should be imported from New Zealand, falling over each of the next five years by 2,000 tonnes, to 75,000 tonnes. The Government believe strongly that we should give that market to New Zealand, as it is essential to it, and we shall be pressing the Council next week to adopt that proposal of the Commission.

Mr. Robert Hughes

Notwithstanding the slight difference over figures that arose between us during an earlier question, will the Minister accept that by far the best way of providing assistance to smaller producers is to exempt them from the levy and to have a sliding scale upwards above a certain figure for larger producers? Now that the date of the collection of the levy has been postponed, will the right hon. Gentleman take this opportunity to rediscuss the matter with those involved in the industry to ascertain whether such a scheme can be formulated? That would do far more to help than dealing with the 2.5 per cent. reserve to which he referred earlier.

Mr. Jopling

I am surprised that the hon. Gentleman is saying that small farmers should be exempted from the levy. He will recall that we have been insistent, throughout the negotiations that have taken place over the past eight or nine months on the super levy, that small farmers throughout the Community should not be exempted from the levy. Such an exemption would discriminate very much against the British dairy industry and I am most disappointed to hear that the Opposition are taking that approach.

Mr. Hughes

That is a distortion of my supplementary question.