Dairy Industry — 7 Jul 1999

I beg to move,

"That this House notes that, since 1st May 1997, the farm gate price of milk has fallen by over a quarter, the price received by farmers for cull cows has fallen by over one third and the income of dairy farmers has collapsed; condemns the Government's failure in recent CAP negotiations to secure any immediate increase in milk quota for mainland Britain whilst conceding increases for other EU countries; deplores the delay in publishing the Monopolies and Mergers Commission report on Milk Marque, thus needlessly damaging confidence in the industry; expresses concern that outbreaks of TB have risen substantially; and urges the Government to remedy this crisis by addressing these issues, ending its disgraceful neglect of the dairy industry, strengthening Milk Marque and implementing the Krebs Report without further delay".

I beg to move, To leave out from "House" to the end of the Question, and to add instead thereof:

"recognises the economic difficulties faced by the dairy industry; supports the Government's efforts to reform the Common Agricultural Policy during the recent Agenda 2000 negotiations in order to move towards a freer, more competitive market; welcomes the publication of the Monopolies and Mergers Commission report on the supply of raw milk; notes its conclusions and looks forward to a new selling system being in place which meets the needs both of consumers and the dairy industry; endorses the Government's view that the industry itself must help shape its own future; and congratulates the Government for its support for industry initiatives to achieve this."

prepared to use their marketing muscle in the market place and to prevent the sort of domination of buying power which results in this country from a small number of processors and supermarkets. A co-operative with the ability to compete in the world of the giants--the supermarket chains and food processors--would be a benefit to producers and consumers. By cutting back on the bargaining power of the middle men, there is no reason why retail food prices should not fall."--[ Official Report , 23 March 1993; Vol. 221, c. 828.]

Question put, That the original words stand part of the Question:--

The House divided: Ayes 176, Noes 326.

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