§ Lord Brougham and Vaux
asked Her Majesty's Government:
What changes they propose in the price paid to the suppliers of liquid welfare milk.
§ The Parliamentary Under-Secretary of State, Department of Health (Baroness Hooper)
The Government currently pay the full retail price for the liquid milk they buy for the welfare milk scheme at an annual cost of approximately £80 million. In view of the size and value of the department's purchase, detailed commercial negotiations have taken place with the dairy trade. Following these negotiations, we intend to implement a new pricing structure that will represent a reduction of approximately 10 per cent. in the current average price paid to welfare milk suppliers.
This decision has been arrived at after an extensive period of negotiation, consultation and consideration. There will be provision to enable this reduction to be shared between all sectors of the trade on a voluntary basis.
People entitled to liquid welfare milk will continue to receive seven pints of milk per week entirely free of any charge.