HC Deb 03 May 1984 vol 59 cc533-4
12. Mr. Colvin

asked the Minister of Agriculture, Fisheries and Food if he will consider making special provision to help those dairy farmers forced out of milk by the quota scheme but still committed to the farm and horticulture development scheme.

Mr. Jopling

A reserve quota of about 2.5 per cent. of the total England and Wales Milk Marketing Board quota has been set aside to assist producers who have been severely affected by special circumstances or who have development plans. I hope this reserve will help those who are in the process of expanding to remain in milk production if they wish to do so. Any producer with a development plan who wishes to go out of milk production will have his request considered on its merits.

Mr. Colvin

I thank my right hon. Friend for that reply, which shows that he appreciates that it will be extremely difficult for dairy farmers to fine tune production. A dairy cow is not something one can turn on and off like a tap. Will my right hon. Friend go further and suggest to the Milk Marketing Board that it considers a scheme to set aside part of the Co-responsibility fund—money which is paid by dairy farmers—to provide, say, a 1 per cent. buffer above and below the quota figure, a measure which would reduce the risk of penalty to dairy producers?

Mr. Jopling

I do not believe that it would be within the rules for the Government or the Milk Marketing Board to keep aside some of the money paid into the Co-responsibility fund. We have always been prepared to be sympathetic if farmers get into difficulty. In certain cases we have been able to agree to withdrawals from those plans without penalty.

Mr. Geraint Howells

If a new entrant buys a non-dairy farm, will he be allowed to change the policy on that farm to make it a dairy farm?

Mr. Jopling

That is one of the matters we must consider in detail now that we are at last reaching a point when we know what the detailed rules of the super levy arrangements will be. The hon. Gentleman's question is one that we shall be considering carefully and urgently.

Mr. Maxwell-Hyslop

Will my right hon. Friend invite his colleagues to bear constantly in mind the position of a tenant farmer producing milk who has not expanded his output since 1981 and is giving up 2.5 per cent. of his quota as well as a general 6.5 per cent. of the quota? If he is forced out of milk production and his tenancy, because the land cannot be used for any other form of farming, he loses not only his job but his home. His position differs from that of people in other industries, for example, steel—which are subjected to EEC quotas — and to whom compensation is paid. A person displaced from such industries does not lose the roof over his head.

Mr. Jopling

In deciding which year to make the base year for quotas, one chose 1983 for the most up-to-date patterns of production. One faces an inherent difficulty when considering people, such as those to whom my hon. Friend referred, who have not expanded since 1981. I agree that this is a difficult matter, and I hope that we can look at the specific problems. I hope that the housing problem to which my hon. Friend referred will not occur on a large scale. If they do, naturally I hope that we can give a little thought to them in talks.

Mr. Mark Hughes

After three attempts, I am glad that we have persuaded the Minister to confirm that he has room for considerable manoeuvre under the rules on the application of quotas and that he will consider the scheme that we have suggested to him.

Mr. Jopling

I am glad to repeat what I said earlier. We shall look at the possibilities during the next few weeks.