HC Deb 07 July 1983 vol 45 cc137-8W
Mr. Alexander

asked the Minister of Agriculture, Fisheries and Food what were the monthly figures for sales of butter in the United Kingdom between October 1981 and February 1982, and between October 1982 and February 1983, respectively.

Mr. MacGregor

Figures on sales of butter are not available. Consumption of butter in the months in question as recorded in the national food survey is as follows:

Butter consumption (ozs per person per week)
1981–82 1982–83
October 3.43 3.18
November 3.49 3.35
December 3.93 3.39
January 3.16 3.50
February 3.49 3.21

Mr. Alexander

asked the Minister of Agriculture, Fisheries and Food if he is satisfied with the way the Christmas butter scheme operated.

Mr. MacGregor

We opposed this scheme from the outset because it was inappropriate for the United Kingdom market where, in the event, it proved disruptive. However, within its limitations it operated satisfactorily.

Mr. Alexander

asked the Minister of Agriculture, Fisheries and Food if he is now satisfied that specially priced Christmas butter was generally available throughout the United Kingdom.

Mr. MacGregor

Supplies of the special sale of butter were allocated to packers and importers on the basis of their shares of the packet butter market. National distribution of the butter was achieved through their normal distribution arrangements and they generally allocated supplies to their customers on the basis of previous purchases. However, because packing and delivery of the butter took place over an extended period supplies reached some retailers later than others.

Mr. Alexander

asked the Minister of Agriculture, Fisheries and Food what representations he has received from retailers concerning the operation of the Christmas butter scheme.

Mr. MacGregor

My predecessor received a number of representations from or on behalf of retailers. They were concerned mainly with the disturbance and uncertainty caused in the butter market by this scheme.

Mr. Alexander

asked the Minister of Agriculture, Fisheries and Food whether he will press the Commission to increase the ordinary butter subsidy either throughout the year or during the Christmas period rather than introduce special arrangements.

Mr. MacGregor

The Commission has already been told that we would prefer an increase in the consumer subsidy throughout the year rather than further special sales of limited duration.

Mr. Alexander

asked the Minister of Agriculture, Fisheries and Food what was the average reduction in the retail price of a 250 gramme pack of butter in the United Kingdom as a result of the subsidy on butter sold under the Christmas butter subsidy scheme.

Mr. MacGregor

The maximum price of butter sold under this scheme in the United Kingdom was fixed at 44p per 250g pack. Information on the average price at which this butter was sold is not available but in many instances retailers applied a lower price.

Mr. Alexander

asked the Minister of Agriculture, Fisheries and Food what rate of subsidy to consumers per 250 gramme pack of butter was agreed for the United Kingdom by the European Community under the European Community's Christmas butter subsidy scheme.

Mr. MacGregor

In setting the sale price of stocks of intervention butter for the "special sale" scheme in 1982–83, a reduction of 85 ECU per 100 kg was made for those countries, including the United Kingdom, which already operated the Communities' general consumer butter subsidy scheme. A similar subsidy was applied to private storage butter covered by the scheme. In the United Kingdom this represents approximately 13p per 250g. However, the scope for price reductions was offset to the extent that market prices were already below the intervention price and there were exceptional packing and handling costs involved in supplying the butter under the scheme.