HC Deb 19 January 1984 vol 52 cc324-5W
Mr. McQuarrie

asked the Minister of Agriculture, Fisheries and Food if, when drawing up proposals for a quota/supplementary levy system, he will consider including the following conditions: (a) no exemptions, (b) a base period based on 1983 production, (c) price assurance on the quota quantity, (d) voluntary incentives to curtail production and (e) a quota for first-time entrants based on the herd and acreage and at 1983 production prices.

Mr. Jopling

The responsibility for drawing up proposals for a Community quota/supplementary levy system rests with the EC Commission. As I explained to the House on 1 December 1983—[Vol. 61, c. 1052]— we reject the supplementary levy in the form already proposed by the Commission, but we are prepared to see whether it can be turned into an acceptable arrangement.

On the particular points raised:

  1. (a) The Commission's proposal makes no provision for exemptions and I shall continue to oppose any suggestions for changes which would allow producers in certain member states to increase production and add to the surplus while producers elsewhere were restricted.
  2. (b) The Commission has proposed that 1981 should be used as the basis for calculating quotas. This would create significant difficulties. I shall continue to argue that these would be greatly diminished if the base were derived from 1983 production with a reduction to bring the total quota down to the agreed level on a Community-wide basis.
  3. (c) If we are to get the milk market into better balance and to reduce the cost of the milk surplus any quota system would need to be accompanied by a restrictive price policy applied to all milk.
  4. (d) The Government are prepared to look constructively at any Commission proposals which would help in dealing with the milk surplus. The Commission has not proposed a scheme giving incentives for voluntary reductions in production and experience of such schemes in the past has not been encouraging.
  5. (e) Given the imbalance in the milk market it might not be in the best interests of producers as a whole, or of the new entrants themselves, to encourage new entrants into milk production. However, the Commission proposal includes measures to deal with circumstances in which certain producers require special provision. We shall press for these to be fair while not weakening the system as a whole.