HC Deb 02 July 1987 vol 118 c614
5. Mr. Matthew Taylor

asked the Minister of Agriculture, Fisheries and Food if he will make a statement on the future of the dairy industry in England and Wales.

Mr. Donald Thompson

I believe that the industry is now on a much sounder footing following last December's Council agreement on measures to improve the balance of the market. The next step will be to consider what measures should follow the current quota system when it expires in 1989.

Mr. Taylor

Will the Minister assure the many dairy farmers in this country that the 1984 pledge to protect small farmers producing fewer than 200,000 litres will be honoured in any milk quotas or other cutbacks that might be instituted? Secondly, will he pursue the suggestion repeated by the EEC on many occasions that it will be sympathetic to preferential quotas to areas most suited to dairy production, such as Cornwall?

Mr. Thompson

The areas most suited to dairy farming were in at the beginning with quotas, and have them, simply because of the very nature of the business. We are always aware of the small farmer, and the small family farmer, and I shall bear in mind what the hon. Gentleman has said.

Mr. Harris

Can my hon. Friend give any indication of the likely timetables on the discussions on milk quota leasing? Can he also say what is the position of people who wish to enter into such leasing arrangements here and now, while those discussions are proceeding?

Mr. Thompson

We have the sort of answer that my hon. Friend seeks on quota leasing, and we are hastening to get the small print out of the way as soon as the price fixing is finished.

Mr. Home Robertson

As the Minister has just said that the present quota system will technically disappear in 1989, will he tell us whether the Government intend to see the introduction of a new quota system to continue after 1989? Has any consideration been given to the idea of extending the quota principle to cover other commodities, as a means of regulating production and protecting the interests of producers, consumers and, indeed, taxpayers?

Mr. Thompson

Discussions are continuing on whether quotas should be introduced into the farming of sheep, cereals and other products. Indeed, we constantly discuss, debate and argue about those matters on these Benches and upstairs. At present, however, I cannot and will not speculate on the future of quotas in 1989.