§ David BurnsideTo ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the impact of the EU' s policy of cutting export refunds for whole milk and skimmed milk production on(a) the United Kingdom and (b) the Northern Ireland dairy sector. [26127]
§ Mr. Morley[holding answer 11 January 2002]: Export refunds for dairy products may be set to compensate for the difference between world and EU prices. When this gap narrows, as was the case earlier last year, the refunds are reduced. When it widens, as is the case at present, the refunds may be increased. But in setting export refunds for dairy products the Commission and the Management Committee for Milk and Milk Products are required to consider a number of factors. These include the objectives of the Common Organisation of the Market, the supply of dairy products on EU markets (required, for example, for food manufacture), as well as the difference between world and EU prices. In the last quarter of 2001 weak world markets made it difficult for EU traders to export, including the Northern Irish dairy sector which relies particularly heavily on exports of milk powders. The UK therefore supported proposals for higher export refunds for these products which were agreed in November and December 2001. The market situation is being kept under review.
§ Mrs. Iris RobinsonTo ask the Secretary of State for Environment, Food and Rural Affairs what plans she has to assist the dairy farming industry in the United Kingdom. [25947]
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§ Mr. Morley[holding answer 11 January 2002]: The report of the Milk Task Force has now been received and passed on to the Policy Commission on the Future of Farming and Food for it to take account of the recommendations in forming its own views. In advance of receiving the report of the policy commission, it would be premature to speculate on any future actions.