HC Deb 24 July 1987 vol 120 cc613-4W
Mr. McLoughlin

asked the Minister of Agriculture, Fisheries and Food if he will make a statement about milk quota leasing.

Mr. MacGregor

As I have already announced to the House, as part of this year's price fixing, we secured agreement that a measure would be implemented to permit the continuation of milk quota leasing. We have been urging the completion of the necessary regulations as quickly as possible, and considerable progress has been made. But adoption itself will not be possible until after the summer holiday because of the need, first, to consult the European Parliament.

In view, however, of the importance which we attached to the early implementation of a leasing arrangement, and to assist producers, my right hon. Friends and I have agreed that preparation for leasing arrangements can be pursued in the meantime. The milk marketing boards will accordingly be announcing shortly the details of a scheme whereby producers who wish to participate in leasing arrangements will notify the appropriate milk marketing board. The board will then automatically adjust the quotas of the farmers concerned as soon as the regulation is formally adopted.

Mr. Amos

asked the Minister of Agriculture, Fisheries and Food what representations he has received from farmers about the implication for the dairy industry about the fact that milk quota is not considered to be a qualifying asset under the Capital Gains Tax Act 1979 in terms of eligibility for roll-over relief; and if he will make a statement.

Mr. Donald Thompson

I have received a number of representations about the fact that milk quota is not an asset qualifying for roll-over relief against capital gains tax. Taxation policy is, however, the responsibility of the Chancellor of the Exchequer and I would refer my hon. Friend to the reply that he has received from the Chancellor to a similar question.

Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food, what information he has as to the highest known price paid per litre of milk quota in (a) East Sussex and (b) elsewhere; what litreage has been purchased by persons not resident in the United Kingdom; what has been the average rate of return of milk producers in each of the past three years; and what is the reason for the premium paid for milk quotas.

Mr. Donald Thompson

No records are kept on the price of quota and I therefore have no detailed information on the price paid for milk quota in East Sussex or eleswhere. So far as purchases of quota by persons not resident in the United Kingdom are concerned, it is not possible for United Kingdom milk quota to be transferred outside its boundaries. Information on the returns to milk producers in 1984–85 and 1986–86 is published in "Milk Production 1984–85" and "Milk Production 1985–86; copies of these publications are available in the Library of the House. Figures for 1986–87 are not yet available. The price paid for milk quota is a reflection of market demand and the continued overall profitability of the dairy sector.