§ 21. Mr. Campbell-Savoursasked the Minister of Agriculture, Fisheries and Food whether he has evidence that his most recent announcement on school milk supply has encouraged local authorities to reconsider their policy on the provision of school milk.
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§ Mr. Peter WalkerNo assessment of the response to the new school milk scheme can be made until later in the summer when local authorities will have had an adequate opportunity to consider their attitude to it.
Mr. Peter Mills asked the Minister of Agriculture, Fisheries and Food if he is now in a position to make a statement about the arrangements for claiming European Community subsidy on school milk.
§ Mr. Peter WalkerI am glad to say that agreement has now been reached with the European Commission on the revised arrangements which will help local authorities to sell milk in schools with the advantage of the subsidies available from FEOGA for school milk. The Commission has agreed that the contribution made by public authorities in the United Kingdom should be aggregated for the purpose of calculating the 25 per cent. national contribution required under the Community regulation. It has also agreed that, while the price charged by local authorities for the milk should reflect the value of the Community subsidy, it may take account of average costs incurred by local authorities in distributing it to school children. A circular letter explaining the new arrangements, which should apply during the coming autumn term, is being sent to local authorities.
With the agreement of the Prime Minister, I am taking over from the Secretary of State for Education and Science responsibility for administering the scheme in England. Payments will now be made directly by the intervention board for agricultural produce using funds paid by the European Commission. Parliamentary approval for this new service will be sought in a Supplementary Estimate in due course.
The Secretary of State for Scotland will be announcing shortly the arrangements to apply in Scotland.