§ Mr. Georgeasked the Minister of Agriculture, Fisheries and Food what were the main points discussed at the Council of Ministers (Agriculture) in Luxembourg on 25th and 26th October; and what decisions were taken.
§ Mr. John SilkinThe Council of Ministers (Agriculture) on 25th-26th October discussed the proposed action programme for improving the balance in the Community's milk market, and the ending of the scheme for compulsory incorporation of skimmed milk powder in animal feed.
My right hon. Friend the Chief Secretary to the Treasury joined me on the afternoon of 26th October for a joint meeting of the Agriculture and Finance Ministers to discuss agri-monetary questions.
There was preliminary discussion on the proposals for a co-responsibility levy on milk, on Community aid for milk in schools, on Community aid for an accelerated programme for eradication of brucellosis, tuberculosis and bovine leucosis, but no decisions were taken.
I made clear that the proposed tax on vegetable and marine oils and the proposed wide-ranging ban on investment aids in the milk sector were wholly unacceptable. The proposal on exclusive use of milk products was not discussed.
The Commission withdrew its proposal for an extension of the scheme for the compulsory incorporation of skimmed 271W milk powder in animal feed beyond 31st October 1976. Consequently no deposits, either on imports or on home-produced protein, will be required after that date, but skimmed milk powder will be available for a period so that the remaining deposits can be redeemed. The Council raised no objection to the recently announced increase in the United Kingdom guaranteed price for milk.
I resisted any change in the value of the green pound. The representative rate for the Danish krone is devalued by 4 per cent. with effect from 28th October. The Commission's suggestions for possible limits on monetary compensatory amounts, and a possible automatic mechanism for adjusting monetary compensatory amounts, were discussed. My right hon. Friend and I made clear the importance of our counter-inflation programme and stressed that monetary compensatory amounts benefited not only United Kingdom consumers but also other member States by maintaining consumption and helping in the disposal of the Community's agricultural production. No decisions on the Commission's suggestions were sought or taken.
The Commission stated that it intends to make a small change in the method of calculation of monetary compensatory amounts for pigmeat. This would take effect on 8th November; it would not result in as large a change as the United Kingdom's earlier suggestion, which remains under discussion, but it will be helpful to United Kingdom processors of pigmeat.