HC Deb 14 December 1978 vol 960 cc261-2W
35. Mr. Cryer

asked the Minister of Agriculture, Fisheries and Food what representations he has received regarding the retention of farm-bottled milk ; and if he is yet in a position to make a statement.

37. Mr. Madden

asked the Minister of Agriculture, Fisheries and Food if he will now make a statement about the supply of farm-bottled or green top milk.

Mr. John Silkin

The Government have considered very carefully the many representations they received on this question during the consultations they carried out earlier this year. Having taken full account of all the arguments, they have decided that simply to proceed along the lines previously announced in August 1975—[Vol. 897, c. 2061—and to prohibit such sales in 1980—except in areas where alternative supplies of pasteurised milk are not readily available—would have serious implications for the livelihoods of producer-retailers. Accordingly, the Government have concluded that it would be right to defer for three years the introduction of these measures. The policy will, therefore, now take effect as from 1st August 1983.

The Government have also been reviewing the pricing arrangements for retail sales of farm-bottled milk. They have concluded that, as the original justification for allowing a 1p per pint premium to be charged on untreated sales no longer remains, the premium should be discontinued as soon as possible. They will be consulting the interests concerned about the date on which the premium will end, and, at the same time, they will wish to consider with them whether it would be right to make any exceptions to this general approach.

In the meantime, in order to provide an incentive for producer-retailers to pasteurise their supplies, the Government intend to make available as from 1st April 1979 grant-aid towards expenditure incurred by such producers in installing on-farm pasteurisation equipment, and necessary ancillary work. The EEC Commission has been notified. Further details of these arrangements will be announced as soon as possible. Estimate provision will be sought in due course, and, pending the passing of the necessary enabling legislation, the service will rest on the authority of the Estimates themselves and the confirming Appropriation Act. The cost will be contained within the planned control totals for public expenditure.