HC Deb 24 March 1994 vol 240 cc403-4
1. Mr. John Marshall

To ask the Minister of Agriculture, Fisheries and Food what representations she has received about the future marketing of milk.

4. Mr. Luff

To ask the Minister of Agriculture, Fisheries and Food if she will make a statement on the reorganisation of the milk marketing board.

The Minister of Agriculture, Fisheries and Food (Mrs. Gillian Shephard)

My right hon. Friend the Secretary of State for Wales and I are consulting on the milk marketing board's amended reorganisation scheme.

Mr. Marshall

Does my right hon. Friend agree that the milk market is in a state of structural deficit because of the operation of quotas? Does she therefore further agree that if Milk Marque—whose motto is "He who dares, wins" —obtains 80 per cent. of the milk market, as it wants to, there is a danger that there will be exploitation of the consumer and of the food processing industry, and a loss of jobs in that industry? Does that not provide an unanswerable case for having a milk regulator?

Mrs. Shephard

My hon. Friend is fresh from his agricultural triumphs of yesterday, but he appears to be proposing a form of "Ofmilk" that I do not entirely favour. The Government's view is that Milk Marque should be subject to the competition authorities, exactly like any other business. We regard that as an adequate protection for consumers, producers and businesses.

Mr. Luff

May I urge my right hon. Friend to resist the pressure from the industrial giants of the dairy business and to stand up instead for the interests of the dairy farmers of Worcestershire and the rest of the country by ending the uncertainty over the marketing of milk at the earliest possible date? Is she aware that in my constituency of Worcester, where Milk Marque will have its headquarters, creating up to 50 new jobs, there is enthusiasm for the idea that the free market in milk, along the lines suggested by the MMB, should come into existence by the end of the year at the latest?

Mrs. Shephard

Both my hon. Friends have clearly illustrated the balance that needs to be maintained between the interests of producers, consumers and business. I greatly regret the delay in setting up the new revised arrangements—1 April was the date selected by the board itself—but I remind my hon. Friend the Member for Worcester (Mr. Luff) that, in the interests of his constituents and of consumers, producers and businesses, it is more important to get the arrangements right than to proceed too quickly to an artificial deadline.

Mr. Maxton

What representations has the right hon. Lady received and what discussions has she had with the Secretary of State for Health to ensure that, whatever the future structure for the marketing of milk in England may be, it will actively encourage greater sale and use of both skimmed and semi-skimmed milk for the sake of the future health of the nation?

Mrs. Shephard

We are in close touch with the Department of Health both on the excellent document "The Health of the Nation" and on all kinds of advice given to consumers. As I have said in the past, I believe that common sense should prevail in such matters.

Mr. John D. Taylor

Is the Minister aware that in all sectors of the milk industry there is growing impatience at the Government's delay, caused partly by the MMB, in reaching a firm decision on the reorganisation of milk marketing in England and Wales?

Mrs. Shephard

Yes. As I have already said, I greatly regret the delay. Considerable progress is now being made. MAFF officials have had many discussions with the board about the scheme, and the board has now submitted amendments to the reorganisation scheme. A further set of amendments was submitted as recently as 2 March. We issued the consultation document for producers, consumers and other businesses on 9 March, and we have asked for responses by 8 April, so I hope that the right hon. Gentleman will accept that we are pushing matters on.