HC Deb 06 February 1986 vol 91 cc417-8
2. Mr. Colin Shepherd

asked the Minister of Agriculture, Fisheries and Food what recent discussions he has had in the Council of Ministers of the European Economic Community concerning the future of milk production within the Community.

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

There have been no recent discussions in the Council of Ministers on the future of milk production within the Community. The Commission's proposals for a scheme to buy up and cancel milk quota have yet to be considered by the Council of Ministers. Other matters affecting milk production are likely to be discussed during the price fixing negotiations.

Mr. Shepherd

In respect of the proposed Community outgoers scheme, will my right hon. Friend ensure that the Council of Ministers is fully cognisant of the real interests of both landlord and tenant and of the importance of reaching an agreement that is fair to both parties and that will reflect individual circumstances? Does he agree that it is probably better to take a little longer in arriving at a decision of this kind than to take one in haste, which might set unfortunate precedents for the future?

Mr. Jopling

My hon. Friend knows that I am anxious to ensure that there is fairness between the varying interests of landlord and tenant with regard to milk quotas. I am having discussions at this moment, but I shall bear in mind what my hon. Friend has told me.

Sir Peter Mills

Will my right hon. Friend bear in mind that in all the problems of milk production and surpluses it is important to be fair to the various countries? Will he look into the developing problem of New Zealand and its butter agency in this country? It is importing butter from Eire and blending it with its own. It is therefore fulfilling a much larger quota in this country. That is completely against the butter agreement and needs to be looked into.

Mr. Jopling

I am aware of my hon. Friend's suggestions and I am looking into them.

Mr. Home Robertson

We recognise the need for an extended outgoers scheme, but what has happened to the negotiations over the scheme? We understood that the scheme was to come into effect in January. Will the Minister assure us that he will try to get it right this time, with particular reference to the needs of tenants in this country, and with even more particular reference to the fact that Britain took an excessive cut in production under the original quota system?

Mr. Jopling

The Presidency of the Council of Agriculture Ministers has not yet brought this forward to the point of decision. It will now be embraced within the normal price fixing arrangements, which we shall begin to discuss at the end of this month.

Mr. Ashdown

If the Commission's proposals go ahead, will the Government respond to the almost unanimous view of the milk producing industry, which would require the Government to establish a fund from the quota which could be reallocated to hardship and new entrant cases? The Government have said in the past that they are broadly in favour of such a system. Will the Minister give an undertaking to put it into operation?

Mr. Jopling

I do not know what the hon. Gentleman means by "a fund". If he means a fund of money, that is one thing. What I need is a reserve of milk quota in order to be able to reallocate. If I want to get some milk quota to reallocate, I have to get it from somebody within this country who wishes to release it. That is much easier to say than to find.

Mr. Andy Stewart

In view of what my right hon. Friend said about a further 3 per cent. of milk producers taking a golden handshake and going out of milk production, has he considered, with the Commission, the fact that this will throw another 200,000 tonnes of beef on to the beef market and impose restrictions on that sector?

Mr. Jopling

Yes, I am aware of that. I think I am right in saying that the Community has proposed a 2 per cent. cut. An NFU delegation saw me this week and its members drew my attention to the great difficulty that would ensue for the beef sector if there were any cut in milk production.