HL Deb 13 March 1992 vol 536 cc1494-5

11.21 a.m.

Lord Carter asked Her Majesty's Government:

What would be the effect on the United Kingdom milk marketing schemes of the European Commission interim measures on low fat milk.

The Minister of State, Ministry of Agriculture, Fisheries and Food (Baroness Trumpington)

My Lords, it is too early to say what the effect on the operation of the schemes will be. That will depend on the exact terms of the interim measures granted.

Lord Carter

My Lords, I thank the Minister for that Answer. Is she aware that implementation of the interim measures in full will effectively mean the end of the milk marketing schemes which are so important to the dairy farmer, the dairy industry and the consumer? Is she further aware that the Milk Marketing Board and the Dairy Trade Federation are totally opposed to the European Commission view on the matter? Will the Minister confirm that the Government will oppose the application of the interim measures by the EC with the utmost vigour?

Baroness Trumpington

My Lords, the interim measures are not intended to end the milk marketing boards; they are intended to maintain the status quo until the court reaches a definitive judgment. The Commission does not intend to undermine the milk marketing schemes by seeking to allow all sales of low fat milk outside the schemes while the issue is unresolved by the European Court of Justice. It simply seeks to protect the interests of existing producers of low fat milk in the meantime. We are still considering whether to put up a defence against the interim measures and your Lordships can be assured that, whatever we decide, our objectives will remain the same.

Lord Boyd-Carpenter

My Lords, will my noble friend say whether this is a matter on which unanimity is required or whether we can be overruled by the majority? Is she aware that many of us regard low fat milk as in the same category as non-alcoholic beer?

Baroness Trumpington

My Lords, I like it too! I agree with my noble friend. These are purely interim measures which have been suggested until the European Court of Justice makes a decision on whether the way in which the Milk Marketing Board operates is within EC rules.

Lord Cockfield

My Lords, without expressing any opinion on the merits of the case perhaps I may ask my noble friend to bear in mind that what is at issue is a judgment or potential judgment of the European Court of Justice. Will she also bear in mind that Her Majesty's Government have always taken great and honourable pride in their observance of Community law? Would it not be a tragedy if the Government's magnificent record in that respect were brought into question by unfortunate comments which might be made?

Baroness Trumpington

My Lords, I am very busy bearing in mind all the points made by my noble friend.

Lord Wade of Chorlton

My Lords, does my noble friend agree that we do have to amend the arrangements for marketing milk in the United Kingdom to take full advantage of our entry into the single market? Will she also confirm that we need stability in the industry and should not take action until the proper marketing schemes are amended by Parliament?

Baroness Trumpington

My Lords, it is widely recognised in the industry that change to existing statutory milk marketing arrangements in the UK is necessary. All five milk marketing boards in the UK are working on detailed proposals for their replacement by non-statutory bodies which they have agreed to present to the Government by Easter.

Lord Carter

My Lords, can the Minister confirm that the marketing schemes in Scotland are not affected by the interim measures since the Scottish schemes specify milk in all its forms? Would it not be absurd if the schemes were to continue in Scotland while those in England, Wales and Northern Ireland were to founder on a bureaucratic argument about the legal definition of milk?

Baroness Trumpington

My Lords, I am aware that the milk marketing schemes in Scotland were extended to cover low fat milk some years ago. The situation there is stable and there is no need for interim measures. The Commission's application, therefore, does not apply to Scotland, but the final judgment would apply equally in Scotland. The situation in Northern Ireland is somewhat different.