§ Mr. Michael Spicer
To ask the Minister of Agriculture, Fisheries and Food if he will make a statement about his plans for the development of B quotas for milk.
§ Mr. Jack
There is no proposal from the Commission for a two-tier quota system for milk. Denmark has been promoting the idea, but it has found little support from other member states. The Government's view is that the costs of administering and controlling such a system would be very high and that unsubsidised exports of dairy products made from B quota milk would displace existing subsidised exports, thus exacerbating the Community's dairy surplus. Moreover, the creation of a B quota would, under the system envisaged by the Danes, require a 4 per cent. cut in current milk quotas. Since the United Kingdom does not have enough quota as it is, any reduction in current quota levels would be unacceptable.