§ Mr. Llew SmithTo ask the Minister of Agriculture, Fisheries and Food what representations she has received regarding European Commission proposals to cut the subsidy on school milk; and what discussions have taken place on the matter in the EC Agriculture Council.
§ Mr. JackThe Department received a number of representations from the dairy trade and local authorities opposing the Commission's proposal for a 50 per cent. cut in the rate of school milk subsidy. At the Agriculture Council on 20 to 21 September the United Kingdom, supported by several other member states, argued that the Commission's proposal was too drastic a measure for achieving budgetary savings and would threaten the viability of a popular scheme which had played an important role in encouraging consumption of milk and milk products. In the light of these arguments the Council agreed to limit the reduction in subsidy to 25 per cent. and to find the balance of the necessary savings by making technical adjustments aimed at improving the cost-effectiveness of the scheme. The Government are satisfied 275W that this represents a sensible compromise which safeguards the viability of the scheme while at the same time taking account of the severe pressure on the Community budget.