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.