States Chamber

The backcloth to the debate was widespread disagreement over the extent to which licensed milk distributors should be granted exclusive distribution rights.

The States debate was the latest attempt to bring some stability and order to the island's dairy industry.

Since members had last debated the issue - in April 2007 - there had in Commerce and Employment's own words been "a failure to agree about exclusivity over deliveries of retail Guernsey Dairy products i.e. Butter, cream and cheese to shops and catering establishments".

For most it was a question of striking a fair balance between the business interests of milk distributors and the needs of local consumers, farmers and taxpayers.

The crucial question being can the States afford to give greater protection to what some - the Commerce and Employment Department and the farmers amongst them - believe is already a strong position held by the roundsmen.

At worst farmers fear this would lead to a return to poor by-product sales that could weaken the dairy's position and ultimately perhaps the sustainability of the whole industry.

But the GMRA was keen to emphasise that the average milk round is largely unsustainable without the added profit margin provided from delivery of milk and milk products to retail outlets associated with the round.

In the end, whilst the Commerce and Employment was keen to see the continuation of doorstep deliveries, it was adamant the development of sales of milk products should not be constrained in any way and the majority of States members agreed. Deputy Mary Lowe's amendment, was an attempt to grant exclusive rights to milk distributors in this regard, but this was defeated.

Meanwhile Deputy Rhoderick Matthews' compromise amendment, which if successful would have resulted in a free market for dairy products in the catering and production sectors, was also thrown out.

However Commerce and Employment's successful proposals were added to by Deputy Andrew Le Lievre who wanted to provide a reasonable period of certainty for all the industry's stakeholders and time for the States to put in place a strategy to ensure the continuing viability of the industry in the longer term.