Milk (Hansard, 13 April 1984)

§ Mr. Austin Mitchell
asked the Minister of Agriculture, Fisheries and Food what is his estimate of the yield in the current year from (a) the co-responsibility levy and (b) the penalties from excess production of milk in the case of the United Kingdom; and whether there is any commitment on the part of the European Economic Community to dispose of any surplus above the quota.

§ Mr. MacGregor
The yield in the United Kingdom from the co-responsibility levy in 1984 is provisionally estimated at £80 million. It is not possible to provide a meaningful estimate of the yield from the supplementary levy which will depend on how producers decide to respond to the new measures. The existing Community disposal measures for milk and milk products are not changed as regards any production above the guaranteed quantities.

§ Mr. Austin Mitchell
asked the Minister of Agriculture, Fisheries and Food what happens to milk produced in excess of the new quotas; and what check there is that excess milk will not be sold to retail outlets direct or converted on the farm to butter and cheese for sale to the public.

§ Mr. MacGregor
The supplementary levy arrangements cover both milk and milk products delivered to dairies and direct sales off farms. Detailed provisions to ensure effective cover of all such sales are being made in Community implementing regulations. As a disincentive to sales of milk or milk products in excess of reference quantities there will be a supplementary levy charged on excess sales at a penal rate.

§ Mr. Austin Mitchell
asked the Minister of Agriculture, Fisheries and Food what mechanism there is under the new regulations to ensure that milk products sold into intervention are not made from milk which is in excess of the quota.

§ Mr. MacGregor
Any milk produced in excess of the reference quantity will be subject to the supplementary levy which has been set at a level which takes account of392W the intervention and other costs involved in dealing with surplus production. No additional mechanism is called for to limit the outlets for milk which has been levied.