HC Deb 22 February 1989 vol 147 c659W
Mr. Teddy Taylor

To ask the Minister of Agriculture, Fisheries and Food what estimates he has made of the amount of additional milk quota agreed at the Council meeting of 23 January which will accrue to United Kingdom producers; what proposals the European Economic community has for uses for the extra milk produced.

Mr. Donald Thompson

The additional amount of milk quota which will accrue to United Kingdom producers will depend on the number and size of eligible applications received. There are no proposals to divert the increased production to specific uses.

Mr. Teddy Taylor

To ask the Minister for Agriculture, Fisheries and Food if he will identify the nature of the additional costs of £64 million which will result in the European Economic Community budget in consequence of the decision of 23 January to increase milk quotas by 600,000 tonnes; and if he will indicate the nature of the policy changes also adopted on 23 January which will offset £41 million of this cost.

Mr. Donald Thompson

EC Commission estimates assume that the additional 600,000 tonnes of milk quota will give rise to a corresponding increase in Community exports of milk products, which would increase expenditure on export refunds by 99 million ecus (£64 million). An additional cost, estimated at 21 million ecus (£14 million), results from a 0.5 per cent. reduction of the milk co-responsibility levy for producers delivering 60,000 kg of milk or less. The 2 per cent. reduction of the butter intervention price yields estimated savings of 85 million ecus (£55 million).

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