Milk Quota

HC Deb 04 March 1986 vol 93 cc97-8W

Mr. Hirst

asked the Secretary of State for Scotland when he will reallocate the remainder of the Scottish running reserve of wholesale milk quota.

Mr. Rifkind

I intend that an amended and consolidated version of the Dairy Produce Quotas Regulations should come into operation in March. I am glad to say that this will enable most of the remainder of the Scottish running reserve of quota to be reallocated before the end of the 1985–86 milk year and will mean that producers' 1985–86 wholesale milk quota can be finalised.

In these reallocations we shall be helping a number of groups of producers. Firstly those whose development awards were reduced by 42.5 per cent. when the awards were made will have 10 per cent. of that cutback in quota restored to them.

Secondly in order to comply with Community requirements 1985–86 wholesale quota has to be 1 per cent. less than that for 1984–85, but small producers producing up to 200,000 litres per annum have had their quota maintained at the 1984–85 level. Similarly the whole of the 1 per cent. reduction for 1985–86 will be restored to islands producers and those in Kintyre, south of Tarbert.

Thirdly in view of the disproportionate amount of quota which came out of the areas of the Aberdeen and district milk marketing board and the North of Scotland milk marketing board as a result of the milk outgoers' scheme, I am restoring to producers there sufficient quota from the reserve to ensure that there has been no net loss of quota from these areas.

The fourth group of producers we shall be helping includes those whose land has been expropriated and either has been or will be restored to them, and who will have returned to dairying by 31 March 1989. The balance of the reserves available at the beginning of the 1986–87 milk year will be used for this purpose.

Since the reduction of 1 per cent. mentioned above can only be made on issued quota, it will be necessary to increase the 1985–86 cutback to 1.05 per cent. of the 1984–85 quota for mainland wholesale producers who have farming as their main occupation (with the exception of small producers). This will, however, be partly offset by a restoration of 0.4624 per cent. from the reserves, giving a net reduction in quota of 0.5876 per cent.