Lady Megan Lloyd
George asked the Minister of Agriculture, Fisheries and Food what plans he has for the further encouragement of the bulk collection of milk.
§ Mr. Peart
The initial cost of introducing bulk collection schemes is high and under the existing arrangements, the Milk Marketing Board does not get full benefit from the resultant economies. It is, therefore, bearing a substantial running loss.
I have agreed that for a limited period, part of the operating cost shall rate as reasonable market expenses, for the purpose of the financial agreement between my Department and the Board. I have also modified the terms of the savings sharing agreement with the Board to provide, that where savings accrue, the Board will not have to bear the full increased cost of primary haulage. I hope that these provisions which have been welcomed by the Board, will apply to new bulk collection schemes, introduced after 1st October next and will give the Board further encouragement to move 329W ahead in co-operation with the Dairy trade with the systematic development of bulk collection. This development should bring substantial savings in the cost of milk distribution and improvements in the quality of the milk delivered.