Milk Marque (Hansard, 27 July 1999)

§ Miss McIntosh
To ask the Secretary of State for Trade and Industry what assessment he has made of the former MMC's conclusion that the reform of the milk selling system could not produce a competitive market for milk. [93331]

§ Dr. Howells
My right hon. Friend the Secretary of State made clear in his statement on 6 July 1999,Official Report, column 455-56 that reform of the milk sales system was essential if the raw milk market was to function as effectively and fairly as possible. Both Milk Marque and the processors have indicated that they are in favour of reform of the selling system. Both sides have a common interest in devising a system which enjoys the confidence of all.

§ Miss McIntosh
To ask the Secretary of State for Trade and Industry what assessment he has made of Milk Marque's application to extend its operations into processing. [93329]

§ Dr. Howells
The MMC concluded that Milk Marque's planned increase in its milk processing capacity may be expected to operate against the public interest, by enhancing its ability to exploit its monopoly power. My right hon. Friend the Secretary of State concluded that, while Milk Marque remained a monopoly supplier of raw milk to the processing sector, it should not be allowed to extend its milk processing activities in this way. The Secretary of State therefore asked the Director General of Fair Trading to seek undertakings from Milk Marque that it would not take any further steps towards making or carrying out any agreement to acquire or build a processing plant without the prior agreement of the Director General, as the MMC recommended.

§ Miss McIntosh
To ask the Secretary of State for Trade and Industry if he will make a statement on the effect of the Competition Act 1998 on his proposals for Milk Marque. [93249]

§ Dr. Howells
Milk Marque will be subject to the Competition Act 1998 when it comes fully into force on 1 March 2000. It will continue to be under an obligation to comply with any remedies resulting from the monopoly investigation into milk.

§ Miss McIntosh
To ask the Secretary of State for Trade and Industry for what period, following the rejection of the former MMC's recommendation that Milk Marque be broken up, the Government plans that the interim measures will apply. [93330]

§ Dr. Howells
The interim measures will apply until a satisfactory long term solution has been agreed to the adverse effects of the existing way milk is sold by Milk Marque.