Dairy Industry

Debate between Daniel Kawczynski and Thomas Docherty

Thursday 13th September 2012 Westminster Hall

[Thomas Docherty]

The House of Commons Commission has urged the catering and retail services to ensure that we operate within the European rules—I am conscious that I am now setting off a whole new avenue for the hon. Gentleman—but perhaps the Minister will set out what steps he will take to ensure that all Departments buy their milk from British farmers.

The issue that we have faced time and again during this dispute is that retailers have argued that the cuts on farm-gate prices were being implemented by the milk processors and not by the retailers. The reality is that, as the hon. Member for North Cornwall (Dan Rogerson) mentioned earlier, the downward pressure has come from the supermarket shelves, and that pressure is passed on to the milk processors, who then pass it on to the producers.

We have urged Ministers in the Lords to keep open the option of extending the powers of the groceries code adjudicator. I hope that when the Bill comes to the House of Commons, the Minister will consider talking to his colleagues in the Department for Business, Innovation and Skills about the potential of extending the GCA’s powers if necessary.

In closing, I have a few questions to put to the Minister.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

Before the hon. Gentleman finishes, I hope that he will give us an indication of what the Labour party’s position is with regard to bovine tuberculosis, which of course is the other great threat to many of our dairy farmers.

[Thomas Docherty]

I do not speak for the Labour party; I think that my hon. Friend the Member for Ogmore (Huw Irranca-Davies) will have an opportunity to set out whatever issues he wishes to when he speaks, if he has time to do so.

I am conscious that other Members wish to speak, so I will conclude very briefly by asking the Minister some questions. If the voluntary code does not deliver, will he step in and consider regulatory action? Will he tell us when he expects the code to be published? I understand that it is waiting for clearance from the Office of Fair Trading, but I am sure that he will try to ensure that it is published as soon as possible, so when will that be? What assurance has his Department been given about the full implementation of the voluntary code by all milk processors? As the signatory to the code is Dairy UK and not all the players, how will the Department for Environment, Food and Rural Affairs ensure that all the processors play fair? When do the Government expect to bring forward a consultation on the dairy package? I would be grateful to him if he gave us an indication of some of those timings. Finally, when will the Government publish the framework that will underpin the establishment of producer organisations?

I am very conscious that a large number of Members wish to speak today; I am sure that this will be an excellent debate; and I commend everyone who is taking part.