Written question asked by Daniel Kawczynski (Conservative) on Tuesday, 20 June 2006, in the House of Commons. It was due for an answer on Thursday, 22 June 2006. It was answered by Barry Gardiner (Labour) on Thursday, 6 July 2006 on behalf of the Department for Environment, Food and Rural Affairs.

Dairy Industry

Question: To ask the Secretary of State for Environment, Food and Rural Affairs if he will set up a regulator of the price of milk for a temporary period.

Answer: The Government supported the conclusion of the Environment, Food and Rural Affairs Select Committee in 2004, that there was no compelling evidence in favour of setting up a regulatory body to oversee the dairy industry. It is difficult to see how a regulator could determine a fair price other than by reference to a market price. A price regulator would almost certainly be incompatible with EU competition law and with the common organisation of the market in milk and milk products.

Secondary information