A legal row between the Government and the EC Commission over the
future of the UK milk marketing boards seems likely, following
Agriculture Minister John Gummer's backing for the English MMB's claim
that it has monopoly powers to buy all liquid milk, including low fat
milk.
While welcoming the long-term objective of the MMB to change towards a
voluntary co-operative, Mr Gummer yesterday told the annual lunch of the
Dairy Trade Federation in London: ''The MMB have recognised the reality
of market forces. I am concerned, however, at their slowness in
fulfilling their part of the bargain.
''But I am also aware that I have a duty to protect the scheme in a
way that enables the board to change quickly and sensibly. I have,
therefore, informed Parliament today that the Government considers that
the board's exclusive purchasing powers do cover low fat milk.
''We are informing the Commission of our view and that we do not
consider that the UK is in breach of any of its obligations under the EC
Treaty as a result.''
However, Mr Gummer said the Commission might seek interim measures
from the European Court to restore the position, and these could be
granted before Christmas. In these circumstances the board would have no
option but to fall in line very quickly. The industry, therefore, must
prepare itself for this possibility.
Despite his support for the existing milk marketing arrangements, the
Minister believes that change is essential. ''I remain committed to
encouraging the industry to make progress on its proposals for ending
the MMB's statutory monopoly,'' he said.
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