HC Deb 09 May 1996 vol 277 cc359-60
7. Mr. Nicholas Winterton

To ask the Minister of Agriculture, Fisheries and Food if he will make a statement on milk quotas. [27461]

The Minister of State, Ministry of Agriculture, Fisheries and Food (Mr. Tony Baldry)

The Commission is planning to present the Council with options for reforming the dairy regime early next year. Meanwhile, we continue to press for an increase in milk quotas and a reduction in support prices.

Mr. Winterton

What plans do the Government have to consult the dairy farming and processing industry with a view to submitting to the European Commission in the very near future proposals relating to future dairy support, particularly relating to milk quotas? That must be done in the next few years. It is vital that we increase quotas for our dairy farmers and make those quotas transferable and more flexible, because this country has the best climate and grass for milk production.

Mr. Baldry

It is a great sadness that this country is not self-sufficient in milk products; that is because of the agricultural policies pursued by the last Labour Government. My hon. Friend is absolutely right. We have an excellent dairy farming industry and we need to ensure that any reforms of the EC dairy regime play to our strengths and acknowledge the competitiveness of the UK dairy industry. That is why we are pressing for increases in quotas combined with cuts in support prices. That will be good news for UK farmers and for UK consumers.

Mr. Corbett

Is the Minister confident that the impact of the current BSE cull on the dairy industry will not jeopardise the ability of dairy farmers to produce up to the amount of the quota?

Mr. Baldry

We estimate that the of the 30-month cull will reduce milk production by about 1.5 per cent., which can easily be made up by dairy farmers and is roughly equivalent to the super-levy amount this year. There will be no impact on milk production as a consequence of the 30-month scheme.

Mr. John Greenway

Notwithstanding what my hon. Friend the Minister told my hon. Friend the Member for Macclesfield (Mr. Winterton), is it not the case that British milk production is hampered by the quota arrangements? We simply cannot go on producing only 80 to 85 per cent. of our milk requirements. Is not a consequence of that that there is a guarantee that we must import year on year? Is it not time that we had a quota that matched our consumption?

Mr. Baldry

I do not think that anyone disagrees with my hon. Friend. I have explained that the reasons why we are not self-sufficient in milk can be laid firmly at the door of the last Labour Government. We want a reform of the EC dairy regime, an increase in quotas and a cut in support prices, but what we really want is the competitive advantage of the UK dairy industry played to the full. We are determined to achieve that.