§ The Parliamentary Under-Secretary of State for Trade and Industry (Mr. Gerry Sutcliffe)I am pleased to confirm that my right hon. Friend the Secretary of State for Trade and Industry and the Competition Commission on the one hand and Milk Marque and the National Farmers Union on the other, have resolved the litigation between them concerning the recommendations of the Competition Commission and the decisions of the Secretary of State for Trade and Industry relating to the supply of milk in the United Kingdom, which preceded the break up of Milk Marque in 1999.
The recent ruling by the European Court of Justice in this litigation (Case C 137/00) has clarified the law as regards the relationship between the Common Agricultural Policy (CAP) and the application of English 151WS law, in particular the Fair Trading Act 1973 and competition law more generally, in the agricultural sector.
The European Court of Justice judgment makes clear the freedom of Member States to apply competition law in the agriculture sector. However, the Court explained that, when they do, Member States must respect the objectives of the CAP, reconciling any conflicts, in such a way that none of the objectives is rendered impossible by any decision taken pursuant to domestic law. As the agricultural and dairy industries seek to come to terms with the effects of CAP reform on future business structures, I believe that all parties consider that the judgment will provide useful guidance for both industry and the UK authorities.
Taking into account both this judgment and development in the milk market since 1999, I understand that Milk Marque and the National Farmers Union will not be pursuing their claims further.