§ Mr. David NicholsonTo ask the Minister of Agriculture, Fisheries and Food what are the consequences for dairy farmers in England of the agreement on 21 November of European Community Agriculture Ministers(a) to increase European Community milk quotas by 1 per cent. and (b) to reduce guaranteed prices of butter' and skimmed milk.
§ Mr. CurryI am currently considering, with the Secretaries of State for Northern Ireland, for Scotland and for Wales, how best to distribute the additional 1 per cent. of quota now available for allocation to producers. The reductions in intervention prices may in the long run lead400W to lower market prices than would otherwise have been the case but much depends on the market management strategy followed by the EC Commission. At present market prices for butter and skimmed milk powder are well above the level of the intervention price.