§ Mrs. Ann TaylorTo ask the Minister of Agriculture, Fisheries and Food (1) if he will make a statement on the future of producer-processors in the Pennine villages whose livelihood comes from selling milk and milk products to their local communities;
(2) what is his assessment of the impact on communities of the differential levy on producer-processors;
(3) if he will make a statement on the impact of the levy from the milk marketing board on direct sellers of milk and milk products.
§ Mr. CurryUnder Community law the milk marketing boards have the exclusive right to purchase from producers in their area milk produced and marketed without processing. Producers may, however, with the agreement of the board, sell their milk direct to consumers or retail outlets subject to the payment of a levy.
The Milk Marketing Board's entitlement to levy producers has been the subject of legal proceedings in which the European Court of Justice confirmed that the board's exclusive rights extended to direct sellers. The High Court subsequently found that the size of the levies was lawful. This judgment is subject to appeal. Change to the present milk marketing arrangements is essential to enable producers and processors to operate more flexibly to meet the needs of consumers and to give full scope to their entrepreneurial talents. The Government are 418W therefore looking to the England and Wales Milk Marketing Board to advance rapidly in discussion with the Dairy Trade Federation its proposals for change to voluntary co-operative status. The process of change must however be orderly. Until new arrangements are introduced the proper and reliable operation of the milk marketing scheme must be sustained and producers will have to operate within its rules.