HC Deb 04 December 1986 vol 106 cc1067-8
6. Mr. Latham

asked the Minister of Agriculture, Fisheries and Food whether he will make a statement on the proposed charge to dairy farmers in respect of inspections.

Mr. Gummer

I explained the basis of the proposed charge in the reply which I gave to my hon. Friend on 20 November. The £90 charge will cost wholesale producers with the best standards less than £30 a year. Even so my right hon. Friend and I are considering a reduction to £80 for herds of fewer than 20 cows. We also propose to adjust our arrangements so that charging will bear less heavily on the untreated milk sector, including farmhouse caterers using untreated milk. Proposals for regulations are being issued today.

Mr. Latham

That is a step in the right direction. However, when milk producers face further cuts in quotas, is this not a bad time to impose charges of up to £90 for a visit that often last much less than an hour? Should not those charges be substantially reduced?

Mr. Gummer

I do not think that my hon. Friend is right about that. The charge is made not for the visit but to cover the cost of carrying it out, including all the back-up work, administration, testing, travel time and so on. I have been through every detail making up the charges and I have convinced myself that they are the right charges, with no element of profit whatsoever. In those circumstances, it is not unreasonable that farmers should have to bear the cost of ensuring that their market is greater because their products are so clearly guaranteed.

Mr. Hicks

Does my right hon. Friend agree that it is somewhat misleading to use the argument about the number of visits that the £80 or £90 will cover? It is how he arrives at those figures that troubles dairy farmers.

Mr. Gummer

My hon. Friend is no doubt right that people are troubled by that, partly because some people—I know that my hon. Friend is also concerned about this—have made statements that are entirely untrue. Consequently, I have sought to give the exact details. I should be happy to go into those details with any hon. Member, because I want people to know that we have been absolutely fair.

Mr. Home Robertson

Why have dairy farmers been singled out for these excessive, unjustifiable charges, or do the Government intend to impose similar charges on shops and restaurants for their public health inspections?

Mr. Gummer

The hon. Gentleman destroys his case by talking about excessive charges. They are not excessive. They cover the cost of undertaking that work. They ensure that the dairy industry can sell more milk than it would otherwise sell. We have been very careful in that we do not propose to charge those catering in their own homes using untreated milk. That seems to be sensible. We have tried to obtain a proper balance, but ultimately it is reasonable for people to pay the price of ensuring that they sell more of their products and that others in competition have the same high standards.

Mr. Jackson

Will my right hon. Friend remind the House of the average cost to public funds of subsidising every dairy herd in the country?

Mr. Gummer

On average, every dairy herd in the country is subsidised from public funds to the tune of £6,000 a year—

Mr. Budgen

£8,000.

Mr. Gummer

My hon. Friend may like to know that the figure of £8,000 was for the year before; it is £6,000 this year. I should like us to be absolutely accurate. The shops, restaurants and so on mentioned by the hon. Member for East Lothian (Mr. Home Robertson) pay rates, out of which their testing is done.