§ Mr. Peter Millsasked the Minister of Agriculture, Fisheries and Food if he will make a statement on the retail price of milk.
§ Mr. PriorI have already announced that the increase in the guaranteed price for milk at the Annual Review would not lead to any increase in the retail price of milk this year. Milk sold for manufacturing purposes has been earning much higher returns as a result of the world shortage of dairy products and these returns with the income from the liquid market are expected to be more than sufficient to cover the increase in the milk guarantee and other relevant costs. The Government believe that the benefit of this should be passed on to consumers and it has therefore been decided to reduce the maximum retail price of all grades of liquid milk by ½p a pint for four months from 2nd April. My right hon. Friend the Secretary of State for Scotland and I will lay the appropriate orders before Parliament.