HC Deb 17 November 1986 vol 105 cc295-6
4. Mr. Geraint Howells

asked the Secretary of State for Wales if he is satisfied with the present state of the dairy industry in Wales; and if he will make a statement.

Mr. Nicholas Edwards

As I told the conferences of the farmers' unions in Aberystwyth earlier this month, there is still a gross over-supply of milk and milk products in Europe, despite the measures taken in 1984. The European Commission has recently produced a package of measures designed to reduce this surplus production and these are being considered by the Council of Ministers at the present time.

Mr. Howells

I am sure that the Secretary of State is aware that many dairy producers in Dyfed are selling their milk quotas in an attempt to solve their immediate cash flow problems. Moreover, he will be aware that many of those quotas are being sold over the border, to Cheshire and Devon. What advice can the right hon. Gentleman give the dairy farmers of Wales in the short term, and what plans has he to help them in the long term?

Mr. Edwards

Of course I understand the concern of dairy farmers, many of whom are in my constituency, but we have no evidence at present that there is a net loss of quota out of Wales. At the time of those Aberystwyth conferences I looked at the figures, but I could not find any such evidence. The proposals are before the Council of Ministers this week, so I particularly understand the concern felt. We must closely watch how the negotiations go, but I am sure that the hon. Gentleman will feel it right that the Government should oppose the changes in the formula B arrangements put by the Commission, which would be particularly damaging to our producers.

Mr. D. E. Thomas

Will the Secretary of State tell us and the Welsh people what is his role as the Agriculture Minister for Wales? Why does he continually refuse to be involved in these essential EC negotiations himself?

Mr. Edwards

I have often given the House the answer, but I shall repeat it. Of course I play a full and complete role in considering policy with Ministers and in putting the case for Wales. If the hon. Gentleman had been at the conferences to which I referred he would have heard that I put that case forcefully to Commissioner Andriessen. I strongly believe that negotiations in Europe are best conducted on a United Kingdom basis. Far from strengthening the Welsh case, it would weaken it if we sought to fragment the presentation of the British case.

Sir Raymond Gower

As cheese production in 13ritain is very small compared with that in France and other parts of Europe, should we not consider considerably expanding cheese production in Britain and, indeed, in Wales, as well as the expansion of milk products generally, which are again to be found on a much larger scale in Europe?

Mr. Edwards

I am glad to say that such expansion has been taking place and that there have been considerable successes in increasing production as my hon. Friend suggests. However, I fear that the scale of the problem of surpluses confronting us is much greater than any such increases could hope to deal with.