HC Deb 22 November 1984 vol 68 cc265-6W
Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food how many applications he has received for compensation as a result of the introduction of milk quotas; what is his estimate of the number likely to qualify for compensation and the resultant cost to the taxpayer; and whether compensation will be payable regardless of the means of the applicant and the profitability of the farming enterprise as a whole.

Mr. MacGregor

Some 2,747 of the 4,826 producers in England and Wales who originally expressed an interest in the outgoers scheme were invited to commit themselves to the scheme at the beginning of October. As soon as it became clear that a significant proportion of these producers were not going out of production after all we sent out a further 380 invitations to make good the shortfall. On both occasions we gave priority to the smallest producers, as we will if we have to repeat the process in the future.

It is not yet possible to estimate how many producers will finally join the scheme, but on the basis of present indications the figure is unlikely to exceed 2,000. The aim of the scheme is to take in 289 million litres of quota in England and Wales. The total cost in England and Wales is expected to be £37.5 million, spread over five years.

We have not inquired into the means of applicants or the profitability of their farm enterprises by giving priority to the smallest producers we have tried to assist those who are most in need. Additionally, we have excluded a small number of producers because milk is only a relatively small part of their overall farming enterprises.