HC Deb 20 October 1988 vol 138 cc999-1000
4. Mr. Matthew Taylor

To ask the Minister of Agriculture, Fisheries and Food if he has had any representations regarding the implementation of the Agriculture Act 1986 concerning compensation for milk quotas.

Mr. Donald Thompson

I have received a number of representations on this subject.

Mr. Taylor

Is the Minister aware that real hardship is being caused to tenants by excessive delays in the payment of compensation by some landlords? Does he agree that that could be best tackled by requiring interest to be paid on that compensation?

Mr. Thompson

I know very well the hon. Gentleman's concern for the matter in general and for some of his constituents in particular—and why not? I have with me the relevant correspondence. The matter is best settled by arbitration. Some cases will have to go to court, and that is the time when interest can be discussed.

Mr. Maxwell-Hyslop

I wrote to my right hon. Friend the Minister for Agriculture, Fisheries and Food on a specific question and asked him to take it up personally with the Chancellor of the Exchequer. In some parts of the country the commissioners of Customs and Excise are trying to charge value added tax on those compensation payments, which is wholly outwith the undertaking given by the previous Minister for Agriculture, Fisheries and Food when they were introduced. Can my hon. Friend tell me what progress the Minister has made in his representations to the Chancellor of the Exchequer on that important matter?

Mr. Thompson

My right hon. Friend received my hon. Friend's letter last night and we have managed to have only the briefest of discussions on it. However, my right hon. Friend will be writing to the Chancellor of the Exchequer and others on that important matter.

Mr. Molyneaux

Has the Ministry entirely forgotten about the additional quota that was allocated to Northern Ireland, which seems to have been misappropriated and distributed over the whole of the United Kingdom?

Mr. Thompson

These questions seem to run on for a long time in Northern Ireland. I think that I have answered this question on about four previous occasions. The answer has not altered. I can see no hope of a future re-distribution.

Mr. Nicholas Bennett

In view of the substantial decline of the surplus of dairy products, does my hon Friend envisage that there will be further cuts in the milk quota?

Mr. Thompson

The substantial decline in milk products came about on purpose. Therefore, we shall monitor very carefully the supplies of milk, butter, skimmed milk powder and other dairy products and, in consultation with our European partners, review the position.